The Path to Growth



The landscape of B2B SaaS has evolved tremendously, with product-led growth (PLG) companies changing the game with their focus on customers and self service capabilities. However, this means that traditional revenue intelligence and forecasting simply doesn’t work for these companies. In this blog, we'll explore why traditional revenue intelligence doesn’t work for PLG companies and more importantly, what DOES work to ensure predictable revenue generation. 

Leverage all data sources (especially product usage) to do forecasting

Traditional revenue forecasting only factors in sales activity data. For PLG companies, the most important indicator of new business revenue or expansion revenue is product usage i.e. how are your customers using your product and therefore how likely are they to pay for it, or pay even more for it. The second most important data is customer support data. It’s intuitive to understand that customers with low usage and high number of customer support tickets are not likely to pay or expand. Yet in traditional revenue forecasting, these signals would get completely ignored. 

Embrace AI and Machine Learning:

Artificial intelligence (AI) and machine learning can process vast amounts of data quickly and accurately, making them indispensable for modern revenue forecasting. By leveraging AI, PLG companies can identify patterns, trends, and opportunities that may not be apparent through manual analysis.

Foster Cross-Departmental Collaboration:

Successful revenue forecasting requires input from various departments, including sales, marketing, and product teams. Encourage open communication and collaboration among teams to ensure everyone is on the same page and working towards shared goals.

Continuously Refine and Update Forecasts:

Revenue forecasting is not a one-time process. PLG companies must continually refine and update their forecasts to account for changing market conditions, customer behavior, and business performance. Regularly reviewing and adjusting forecasts will help companies stay agile and better prepared for future challenges.

As PLG companies continue to disrupt the B2B SaaS landscape, adopting modern revenue forecasting techniques is crucial for success. By leveraging advanced technologies, incorporating diverse data sources, and fostering cross-departmental collaboration, PLG companies can make informed decisions, align their organization, and adapt to an ever-changing market. Don't let outdated forecasting methods hold your company back—embrace the future of revenue forecasting today.


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