Maximizing Customer Satisfaction and Empowering Teams with Stefan Debois

Maximizing Customer Satisfaction and Empowering Teams with Stefan Debois

Sean: In 11 years, you’re able to now make $3 million in annual recurring revenue. What was the journey like? I mean, in the first three years, were you able to make $1 million, or was it faster as time went by?

Stefan: Yeah, the first years were slow. Also, because of what I told you about the surveys and difficult market, lots of competition, and low ticket value. Yeah, that was difficult. I’m not saying we don’t have that story that is almost bankrupt or so. It just went slow and we thought by ourselves like if we extrapolate that and like by the time that we are retiring, we still don’t have a decent company or a decent sized company.

But then as for the moment that we introduced those assessments with personalized reports, it started to accelerate. So then we start to grow 40-50% per year until what we are now. Of course, the 40-50% per year will be more difficult to maintain because as you go and the absolute value of that. But still, I mean, we go at a decent rate.

Sean: And how did this 40-50% growth boom? I mean, where did it start? Did it start from getting your SEO right, starting SEM? Where did it start before?

Stefan: I mean, we are still in the surveys. We did a lot of work in SEO and that’s a long-term game and we do content, we do link building. So we were able to rank for some of the more difficult survey keywords, although we were only a small company and that’s where we got most of our leads from back then because Bait acquisition was too expensive, the ticket value of our deals was too small to justify the investments. But then of course, when we started with the assessments, with the more unique product, we already had the advantage of SEO. So then we used the also to create landing pages for assessments, and then we got traffic from there which resulted in higher deal sizes. That was good. And then also decided to restart AdWords and then it was profitable because we have two things: the CPC for assessment-related terms is lower because it’s less competitive, but then the deal size is higher. So of course the smaller market than the surveys, that’s how they go. Google has also become more expensive than it was 3 or 4 years ago, but it’s still relatively cheap, cheaper than sending a salesperson to Prospect. So the first one is cheap online acquisition. Second is the high ticket size. Well, not extremely high, but still 5000 per year or like 10 or 20,000 for paying customers. That’s still decent. And then low churn, that’s the third one that you have to have. Like we’re still working on that because rent is still a bit too high. But I mean, those three, you need to have profitable unit economics in SaaS and then of course start to scale.

Sean: What’s your churn rate like right now?

Stefan: On the reported plans? The flagship product, which is 70% of our sales, it’s about 1.6% per month. It’s not that good, but it’s not that bad. Also, it’s.

Sean: Not that bad.

Stefan: It’s not that bad, but it should be bad. The thing is, we can bring it down to 1.2, maybe to 1, but certainly not to zero. And that doesn’t have to be the goal. The goal has to be to compensate it with upsell and land and expand.

Sean: People would kill for 1.7% churn per month. And I’m sure you had more before, like 5% maybe. Like, what did you do to make it? What did you do to make it 1.7%?

Stefan: It’s two things. Investment in customer success. So someone that follows up with the clients. The second thing is also different customer mix and product mix. Probably that’s the highest impact, being away from the cheap survey products towards valuable products. Automatically people that otherwise would churn just don’t become customers because it’s too expensive.

Sean: Stefan What would you say? And I’m hearing you speak, you sound very chill, you know, very relaxed, but very calculated as well. What would you say is your leadership style like? How do you lead your people?

Stefan: Yeah, leadership style. I like to split it between 10% visionary and 90% servant-like serving leader. So the leader needs to determine where the ship is going and also explain why we are going there. Our higher level objective is like automating the advisory process, but of course, enabling our clients to go without having to always add headcount to their business and we create a software layer to enable that. So have to explain to people what’s also the value of that and also like the business or the vision, starting a company being an example for other entrepreneurs can also do that starting company in Europe because like a lot of our software is coming from the US, but we can also do it in Europe for the future generations. It’s important because software is an important part of our economic system. So proving that we can also start a software company here, being a good employer, being an example, having a positive impact on future generations, that’s some of the things that we want to do and that have to explain also to people that work here. They have a purpose. The other 90% is serving as a leader, making sure that the resources are provided, that everybody can be productive in his role, and that those resources can be software tools. Coaching external consultants provides all the resources, then it’s almost sure that someone will be productive. And when someone is productive in his role, the company will also move forward and reach its goals.

Sean: You mentioned earlier, you got so many people competing with you and the survey area and you could have just said, screw it. There are just so many and many others are coming in this market. I’m going to throw the towel and just say goodbye. Right. I mean, a lot of entrepreneurs get to that wall, but you were able to pivot and get past it. What are some of the principles that you live by that allowed you to get to where you are?

Stefan: Yeah, keep on going. Meaning that you have to keep on going always in the same direction. But if the direction that you’re going in is not the right one, you have to maybe take a step back and keep on trying because one time you will find the right direction. If you keep on going, you will eventually find that product market fit, first product market fit, and then lead gen and you have all the ingredients to build a good company both physically and mentally. I think that’s a good principle to live by also.

Sean: Do you wake up early in the morning? Do you have a morning routine or an evening routine?

Stefan: I always take the bike to work, like not a motorbike, like a bike, and listen to a podcast on the bike. So then at least do a lot of podcasts about business and technology, but also some personal things or news stuff.

Sean: And how often do you go and do your sport? I saw it’s kite surfing.

Stefan: Yeah, kite surfing in summer. Not as often as I like because you have to take your stuff, go to the sea. The weather has to be cycling and running that I do more day to day or like week to week basis.

Sean: Are you married? Do you have kids?

Stefan: Yes, I’m married. I have three kids, 22, 20 and 17.

Sean: Oh, wow. They’re big. I thought you’d have babies. You look young.

Stefan, if people want to get in touch with you, they want to ask questions. Maybe they want a free trial for themselves. Or where’s the best place to get in touch?

Stefan: I’m pretty active on LinkedIn, so if you want to connect an invite, always ready to help or to exchange experiences. And then for the company, it’s on the website. So the point of pro.com.

Sean: Amazing. Well thanks so much, Stefan for your wisdom. We deeply appreciate your time and we’re better for it.

Stefan: Thank you for having me. It was a pleasure.