Ciaran Foley

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The Invisible Leak in Mid-Market Growth

There is a specific moment in a company’s journey—usually between $20M and $50M in revenue—where the math that got them there stops working.

The leadership team looks at the dashboard and sees that acquisition spend is up, the sales team is larger than ever, and the brand is well-known in the space. Yet, the net growth rate is flattening.

The instinct is to hire a new VP of Sales or double the performance marketing budget. But the problem is rarely top-of-funnel.

The problem is that the company has built a world-class engine for finding customers and a third-class system for keeping them.

Most organizations at this stage treat retention as a "support" function. They have a Customer Success team that reacts to fires and a marketing team that is 100% focused on the next new logo.

The gap between these two is where the most profitable revenue in the business evaporates.

When you increase retention by just 5%, you aren't just saving a few accounts. You are fundamentally changing the unit economics of the entire business. You are lowering the pressure on the sales team to "replace" lost revenue and allowing every new deal to actually compound.

The winners in the next 24 months won't be the ones with the loudest top-of-funnel marketing.

They will be the ones who treat their existing customer base as their most important acquisition channel.

They build systems: automated lifecycle triggers, behavioral-based re-engagement, and a feedback loop that connects product usage directly to the sales motion.

It isn't as "exciting" as a new ad campaign. But it is how you build a business that survives a shift in the market.

What is your current churn rate telling you about the parts of your business you are currently ignoring?

#B2BGrowth #Retention #SaaS #RevenueOperations #CustomerSuccess #GrowthStrategy

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I've been building and advising at the intersection of strategy, technology, and growth for over 25 years. My book, Demand (available via Amazon at https://a.co/d/04prjWZk) can help you connect with your market. If your business is looking to grow, let's talk. Our team at Chimera connects the dots when it comes to sales & marketing that grows revenue. DM me here or send me an email: ciaran{at}thechimeramarketing.com.

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