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I’ve noticed companies tend to sacrifice giving a shit for an increase in perceived growth that often is not sustainable over the long term. There’s honestly p
by fullspectrumdev 3y ago
I’ve noticed companies tend to sacrifice giving a shit for an increase in perceived growth that often is not sustainable over the long term.
There’s honestly probably a lengthy blog post in this.
Especially in the sector of managed/professional services or SaaS - companies try to scale up fast to have more customer acquisition (focus on net new), and tend to sacrifice the level of bespoke service that retains customers, leading to increased churn over time.
This approach usually means that ARR will increase over the short term (3-5y), which is totally fine, but unless your service is really sticky or you gain market dominance, the growth curve will eventually plateau and enter a decline.
You also see this outside of tech - in the service industry in general. Company expands rapidly, service deteriorates over time, eventually enters a decline phase.
Maintaining quality of service is hard over the long term to balance with growth, you really gotta put the work in.