In selling to business customers virtually every SaaS/XaaS company claims to be pursuing a land and expand strategy, to make their subscription and/or consumption business model generate the growth and profits that their investors and executives are expecting. Some companies are already demonstrating emerging best practices in this area though most startups and fast-growing companies still struggle to make their “strategy” pay off. Why is it such a struggle, and what can they do to crack the code?
Several factors, including disappointing quarterly results since Twitter’s late 2013 IPO, constant pressure from Wall Street investors on the company’s sluggish user growth, and a recent 8,500-word open blog by venture capitalist Chris Sacca critiquing the company’s strategy and proposing an array of corrective measures, culminated in the announcement last Thursday of Dick Costolo’s decision to step down as Twitter’s CEO after five years in the role. This development provides us with a good opportunity to examine Twitter’s strategic challenges and opportunities. What should the new CEO do to stabilize the business and define a winning direction for the company?