six lessons for scaling well:
Posted: Sun Dec 22, 2024 7:11 am
The net promoter score is often used to measure customer satisfaction, but is also suitable for investigating whether you have a good product-market fit. You ask customers one question: how likely is it that you would recommend the product/service to a friend or colleague (on a scale of zero to ten)?
The Sean Ellis Method asks a different question: How would you feel if you stopped using our product or service? If more than 40% of your customers say they are very disappointed, then you have a good product-market fit, according to Ellis.
The retention curve shows how many of your customers keep coming back to make a new purchase and how many don't. In other words: how many customers leave you (churn) and how quickly. Also see this interesting video .
Step 10. Get ready to scale
Only one in 200 startups scales to a $10 million+ business within five years. Successful scaling is risky and the chances of success are slim. There are
Never scale too early. Research shows that the time between founding and market introduction is almost twice as long for scale-ups than for startups. Also, only 25% of startups choose a scalable concept, while 85% of scale-ups do.
Be ready as a leader. As your company grows, it changes and you either have to change with it or draw your conclusions. Many startups are made up of pioneers, but a pioneer is not a manager. In companies that are three years old, 50% of the founders are no longer the CEO.
Attract and retain top talent. Attracting, recruiting and retaining staff is a challenge for many fast-growing companies. See also step 3: use your core values and culture as a starting point for your recruitment.
Make sure you have an appealing ambition. Set yourself a Big Hairy Audacious Goal : a clear and ambitious goal within a certain time.
Secure execution power through a good communication rhythm. As your organization grows, the need for more structure, policy and a shared ambition that is supported by everyone arises. Schedule periodic meetings in which priorities and goals are discussed.
Keep enough money in the bank, because growth requires money.
Theory and practice linked
The book covers a large number of models and theories in the field of innovation and startups. These are enriched with the results of various studies, practical experience of the authors and canada mobile number list quotes from people who were interviewed for the book. It is therefore a nice combination of theory and practice that is easy to read. The various exercises, checklist and glossary at the back complete the ten steps.
“'Budget customer' at Albert Heijn has a dark skin”, was the headline of the Volkskrant above a report about the customer profiles used by the supermarket. A slip-up? It certainly seems that way. But is a customer profile that links specific characteristics to groups of people by definition 'not handy' and 'dodgy soup', as the College for Human Rights argues in response to this report? Certainly not. In this article: an exploration of the opportunities and pitfalls of pigeonholing.
For those who missed it: what's going on?
Albert Heijn uses six customer profiles, as reported by various media, including de Volkskrant . The supermarket does this to tailor the assortment in the branches to local needs. I will pick out a few. For example, the 'traditional customer' is a conservative villager, depicted as a middle-aged woman in a polka-dot dress, with a 'below-average' income and a preference for pork, beer and traditional Dutch brands. The 'premium customer' (not to be confused with the 'city-premium customer', who lives in the inner cities) lives mainly in the west, is retired and buys somewhat more expensive and luxurious products. He is depicted as a graying, bespectacled man in a shirt.
The Sean Ellis Method asks a different question: How would you feel if you stopped using our product or service? If more than 40% of your customers say they are very disappointed, then you have a good product-market fit, according to Ellis.
The retention curve shows how many of your customers keep coming back to make a new purchase and how many don't. In other words: how many customers leave you (churn) and how quickly. Also see this interesting video .
Step 10. Get ready to scale
Only one in 200 startups scales to a $10 million+ business within five years. Successful scaling is risky and the chances of success are slim. There are
Never scale too early. Research shows that the time between founding and market introduction is almost twice as long for scale-ups than for startups. Also, only 25% of startups choose a scalable concept, while 85% of scale-ups do.
Be ready as a leader. As your company grows, it changes and you either have to change with it or draw your conclusions. Many startups are made up of pioneers, but a pioneer is not a manager. In companies that are three years old, 50% of the founders are no longer the CEO.
Attract and retain top talent. Attracting, recruiting and retaining staff is a challenge for many fast-growing companies. See also step 3: use your core values and culture as a starting point for your recruitment.
Make sure you have an appealing ambition. Set yourself a Big Hairy Audacious Goal : a clear and ambitious goal within a certain time.
Secure execution power through a good communication rhythm. As your organization grows, the need for more structure, policy and a shared ambition that is supported by everyone arises. Schedule periodic meetings in which priorities and goals are discussed.
Keep enough money in the bank, because growth requires money.
Theory and practice linked
The book covers a large number of models and theories in the field of innovation and startups. These are enriched with the results of various studies, practical experience of the authors and canada mobile number list quotes from people who were interviewed for the book. It is therefore a nice combination of theory and practice that is easy to read. The various exercises, checklist and glossary at the back complete the ten steps.
“'Budget customer' at Albert Heijn has a dark skin”, was the headline of the Volkskrant above a report about the customer profiles used by the supermarket. A slip-up? It certainly seems that way. But is a customer profile that links specific characteristics to groups of people by definition 'not handy' and 'dodgy soup', as the College for Human Rights argues in response to this report? Certainly not. In this article: an exploration of the opportunities and pitfalls of pigeonholing.
For those who missed it: what's going on?
Albert Heijn uses six customer profiles, as reported by various media, including de Volkskrant . The supermarket does this to tailor the assortment in the branches to local needs. I will pick out a few. For example, the 'traditional customer' is a conservative villager, depicted as a middle-aged woman in a polka-dot dress, with a 'below-average' income and a preference for pork, beer and traditional Dutch brands. The 'premium customer' (not to be confused with the 'city-premium customer', who lives in the inner cities) lives mainly in the west, is retired and buys somewhat more expensive and luxurious products. He is depicted as a graying, bespectacled man in a shirt.