Why a DIY SaaS product hit a retention ceiling, and how embedding services into a blended model broke through
Erica Olsen · OnStrategy
Published September 1, 2022Erica Olsen, CEO and Founder of OnStrategy shares:
- How we burned the bridges and redesigned the offering
- From 74% to 107% Retention in 4 years
- How we land our ICP
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Erica Olsen explains how OnStrategy addressed retention limits in a DIY SaaS product by embedding services into a blended software-and-services model. The talk covers positioning, inbound demand, pricing, and the retention metrics used to manage the model.
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“a SAS DIY model up to about 1.2 1.5 million and we had churn or we had a retention of about 70 percent uh pretty high churn we couldn't change it we couldn't uh fix it we couldn't retain any more customers we through everything we knew at it and I finally looked at my team and I said enough with the crazy this isn't working let's stop doing this”
“were stuck at those low numbers and you can see as we change the model we built an embedded SAS our our software model and our services model we Blended them together and I was talking to some folks yesterday about that we no longer do this thing in our organization where we say software and services we say software and services so we have a completely 100 Blended model and I'll talk about that in just a little bit just this year we changed it even more”
“again it's working for us we are winning business against our OK our competitors because we are the only offering out there that has a blended model and people come to us and we fix their okr messes because what they are doing with their SAS only providers in a lot of cases isn't working so again we'll take everybody's you know lost customers all day long so so the big problem of course that everybody says is the labor side of services is too expensive you're not”
“okrs is like selling a root canal so we stopped doing that doesn't work for us at least not yet so we built a really really robust inbound predictable inbound engine so those are monthly numbers for us that might not look very big but our annual contract value is about 30k so we're pretty happy with that um our specific metric that we drive towards is our 20 mqls that means a call held I have to say shout out to chili”
“effectiveness of the process their actual organizational performance and then the strength of our relationship we are selling ourselves as experts in this work and so we of course are their strategy partner so if we're not seen as that then the value proposition fails so those are our metrics those are our retention metrics and we're really really focused on those on a weekly basis as most of us probably are this is our own dashboard so we matched our kpis”
“Customer-driven service level”
“Our Flat Retention Was Proof.”
“Landing our ICP with only inbound.”
“How We Keep Our Customers”
Video
How I moved retention from 74% to 107% - Slide Deck
Erica Olsen is the founder and CEO of OnStrategy, where she aims to reache a million people annually with to simplify the critical practice of growing and leading strategically. An engaging and experienced speaker and facilitator, Erica delivers her training and speaking around the world. She facilitated strategic planning workshops with GASCO Energy in Abu Dhabi and has trained teams in Singapore, Dubai, Bahrain, Kuala Lumpur and Jakarta.
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Each slide with a short explanation of what it shows. Open the slide text for its exact wording.
19 passages
Erica Olsen CEO, Founder of OnStrategy Retention from 74% to 107% …My shift from SaaS to SaaS+ Founder500, Sept 2022
The presentation moves from confronting a failing SaaS approach to building a SaaS-plus-services model and tracking warning signs. Its agenda includes redesigning the offer, changing delivery, and improving how the business measures customer health.
Over the next 20 minutes: SaaS not working I’m going to show you BURN THE BRIDGES THE SAAS+ GAME WARNING SIGNS Redesign offering Shift delivery model Only inbound All-in-one pricing Customer-driven service level Measures no indexes “Noisy” Numbers Field experienced action
The chart shows OnStrategy revenue increasing every year from $100K in 2017 to $2.4M in 2022. The largest year-over-year step is from $1.6M in 2021 to $2.4M in 2022.
OnStrategy Revenue Growth
The turnaround plan starts with retention data, then redesigns the offering and changes how it is delivered. The checklist frames these as linked steps in moving away from the old model.
How We Burned the Bridges Retention data proof points Redesign the offering Shift the delivery model
The diagram traces a customer journey from setting direction and building a plan through implementation and quarterly reviews, ending in churn. Strategic planning took more than 90 days, while self-guided implementation left customers to use the app or not.
Our Product Approach Wasn’t Working …that was a tough pill to swallow. Strategic Planning Design Completed in >90 days Self-Guided Implementation Using our app, or not. Set a direction Build a plan Set up implementation Review Q1 Review Q2 Review Q3 Review Q4 Churn
The net retention chart rises from 67% in 2017 to 107% in 2022, after the roughly 80% plateau described for 2017 to 2020. The progression makes the later improvement visible against the earlier flat performance.
Our Flat Retention Was Proof. ~80% from 2017 to 2020. High churn makes it hard to build a predictable business.
The SaaS-plus-services model bundles an expert and an app into a recurring planning cycle. Experts guide planning and rollout, while the app supports monthly reviews and quarterly refreshes, with client success and retention as the outcome.
So, We Brought Our Two Worlds Together. SaaS+Services. Our experts drive the planning process from A->Z. We do the work for rollout. We drive the quarterly/monthly process with the app. Set a direction Rollout the plan Review monthly Refresh quarterly Client success + RETENTION Build the plan An Expert + App Bundled Together.
The operating model assigns every client a senior strategist and uses bench consultants, standardized engagements, and process KPIs. The slide pairs this service structure with a $200K-per-FTE benchmark.
$200K per FTE Every client assigned a senior strategist Bench consultants Engagement standardization Process KPIs
The chart tracks net retention rising from 67% in 2017 to 107% in 2022, with gains in each year shown. It highlights the four-year shift from below 100% retention to expansion.
From 74% to 107% Retention in 4 years No looking back
The sales approach relies on inbound demand, an all-in-one offer, and service levels shaped around customer needs. These choices describe how the SaaS-plus-services package is positioned.
How We Sell SaaS+ Landing our ICP with only inbound. All-in-one not a la-cart. Customer-driven service levels.
The funnel narrows from 120 leads to 44 qualified leads, 20 MQLs, 18 SQLs, and 8 sales. The accompanying approach focuses on transactional keywords, little paid promotion, thought-leadership nurturing, and strict qualification.
How We Land Our ICP. Transactional keywords only. Almost no paid. Aggressive nurturing through thought leadership. Brutal qualification. These are the metrics that matter. Other marketing data is great, but it gets noisy. 44 Qualified Leads 20 MQLS 18 SQLS 8 Sales 120 Leads 23 Transaction Keywords
The offer uses all-in pricing without a public pricing page, includes unlimited users and features, and embeds services. The product screenshot presents the strategy app as supported by expert partners and a team of strategists.
All-in Pricing. No pricing page. Seriously. Unlimited users, all features. Embedded services. Services to churn points.
The comparison offers DIY, coached, and expert-led service tiers, moving from self-guided tools to an expert-managed execution cycle. Quarterly prices rise from $1,500 to $3,000 to $6,000 as support increases.
Customers Can Dial Up Or Down Service By Quarter No Most customers want our help. But not forever.looking back
The retention approach centers on three early-warning KPIs, filtering out noisy measures, and responding with field-experienced action. These are the three practices highlighted for keeping customers.
How We Keep Our Customers 3 early warning sign KPIs Eliminate the noise “Field- experienced” action
The framework separates process strength, performance strength, and relationship strength, then assigns indicators to each. It distinguishes the client's process and performance from the shared relationship the service is meant to build.
Measures Not Indexes (1) Process Strength (THE PROCESS WE ENABLE) - Current Data # of clients w/ 90% or more OKRs reflecting current performance - Monthly Reviews # of clients w/ 20 or more interactions with Results Dashboard (2) Performance Strength (THE VALUE WE PROVIDE) - Achieving Goals # of clients w/ 75% or more OKRs achieved/on target - Delivering Results # of clients w/ 75% or more KPIs achieved/on target (3) Relationship Strength (OUR SAAS+ PROMISE) - Our Credibility # of clients that view us as strategic partners - Team Connectedness % of staff connected with strategic performance (pulse survey) THEIR Process THEIR performance Our JOINT Relationship
Two dashboard examples connect client value to process and performance measures. Their quarterly charts compare targets with actual results, while the year-to-date views show progress against each measure.
Match Our KPIs to Client Expected Value.
A client performance dashboard provides warning signals across goals, KPI status, and app utilization. The service model relies on field-experienced strategists, alerts, and quarterly business reviews rather than customer-service representatives.
Action by Field-Experienced Strategist No CSRs Warning alerts QBRs about organizational performance
The recap groups the lessons into abandoning the old approach, building the SaaS-plus-services model, and watching warning signs. It emphasizes redesigning the offer, inbound selling, service levels, and meaningful KPIs.
SaaS not working I showed you: BURN THE BRIDGES THE SAAS+ GAME WARNING SIGNS Redesign offering Shift delivery model Only inbound All-in-one pricing Customer-driven service level KPI’s “Noisy” Numbers Measures not indexes Over the last 20 minutes…
The closing card thanks the audience and identifies Erica Olsen and OnStrategy.
September 2022 Erica Olsen CEO of OnStrategy