Traditional Businesses are Thinking like SaaS

More and more “traditional” businesses are thinking like SaaS. 💭
And it’s not about software. 💻
It’s about predictable and sustainable revenue. 🔮

I had two conversations last week that hammered this home: 🪒
- One with the head of a professional services firm,
- One with an executive in commercial banking.

Different industries, same realization: 💡
Growth isn’t just about finding new customers. It’s also about increasing value with existing ones.
Expand, not just acquire. 👈

SaaS businesses have no choice. 🤷
If they don’t deliver value and secure retention, they don’t make money, and they don’t survive. 😵
The model demands it. 💸

But traditional businesses? Some can get by on one-time sales.
Still, the smart ones are realizing something:
They’ll be more profitable, and more valuable, if they think like a subscription business. 🌟

Retention & Lifetime Value = Compound Growth. 📈

Because customer retention isn’t just a SaaS thing.
It’s a smart-business thing. ✅

Ask yourself:

• - Do we know what success looks like for our customers after the sale❓

• - Do we have systems to surface risk and opportunity❓

• - Are we growing the lifetime value of the relationships we’ve already earned❓

You don’t need to be a SaaS company to think like one. 💪
If you want compounding growth, and the valuation boost, then you need a retention mindset. 🚀

Retention drives revenue quality and predictability, as well as long-term value. 🏎️
It turns growth into durability. 💯

One reason this mindset shift matters is that businesses with recurring or repeatable revenue streams often earn higher valuation multiples, even in industries where subscriptions aren't the norm.
Investors reward predictability.