Early Traction vs Predictable Revenue…what’s the difference? Part 2
April 6, 2022 - Dan Rossignol
Now that we have covered early traction or what we call your Founder Led Growth stage it is important to pivot over to predictable revenue and if you are a Series A and beyond bound company chances are this is keeping you up at night. What gives and why is predictable revenue so hard to achieve? For most companies, its because they have yet to establish scalable go-to-market frameworks and growth loop playbooks. This is a typical miss-step because your teams are busy selling a future product story without focussing on their existing capabilities and how these capabilities are driving the desired outcomes for their first cohort of customers.
Let’s discuss the second of two very distinct leading growth indicators (LGIs), predictable revenue or what we call your Capabilities and Outcomes Led Growth stage or C&O Led Growth for short.
Predictable Revenue = Capabilities & Outcomes Led Growth
We see predictable revenue as being a successful result of C&O Lead Growth in which your next cohort of customers are using your company to solve specific business problems. Predictable revenue means you are able to accurately forecast your customer growth over specific periods of time because you have established sound metrics and robust customer pipeline. This is critical and takes time and most companies have the hardest time entering into this stage. If you are a newly minted Series A company your board will be asking for regular strategies and insights around how you plan scaling your operations and growth.
Here are some quick actions you can take during your C&O Led Growth stage:
Start Using Dashboards & Metrics Now: You will want to be able to articulate and visualize sales productivity
Use Case and Case Studies: You will need your customers to be your sales team
Renewals & Expansion Dollars Matter: Keep and expand your customer base like your life depends on it
Perform Regular Customer Cohort Analysis: You need to learn faster than before about customer patterns and behaviors