We hit 1M in revenue after two years of bootstrapping yet we are starting all over again.

In fact, it's much worse than that - we churn and burn customers just to grab money which in turn has a huge negative impact on our reputation and might have cost us much more than we gain.

We provide a cloud SaaS solution that helps local businesses, such as massage, spa, beauty services, etc. with marketing automation, turning prospects into loyal customers.

We use outbound sales strategy. We have an in-house sales team and have built our own cold-calling system(after trying other software tools and not satisfied with them). It takes us a long time to optimize the sales process but I don't want to dig into that here. I want to focus on one thing that we've done wrong: signing unqualified customers for money.

We have almost 400 paying customers now and most of the customers pay yearly; however, 70% of them are not active.

The truth is, we made a deal with the devil. We signed many customers whom we shouldn’t have signed.

Many of them don't have Technology Fit. There's 0% chance those customers would be successful in using the product. We tried training them online, numerous times per customer. Each training takes about 2 hours on average.

The survey we did with the inactive customers tells us that 30% of them say they still don't know how to use the product even after hours of training.

Simply put, they are technology laggers, and we should not have signed them.

The survey also tells us that 70% of the inactive customers don't find success in using our product. While many of them say that they are happy about our customer service, we have not brought success to them. What they want is to get new customers fast; otherwise, they are out of business.

We signed customers who are still in survive stage, while our product gets a different job to be done.

What's next?

The upside is that of the 30% active customers, our NPS is 55 and the retention rate of these customers is 100%. We will have to do a better job of qualifying our customers.

For the 70% inactive customers, we'll try to fulfill their job-to-be-done by helping them get to the next stage so that our product can really help them.

We're starting all over again.