Are you planning your next year SaaS strategy?
A good place to start? Use the Eisenhower Matrix. This framework helps you categorise tasks and initiatives based on urgency and importance, making it easier to prioritise, delegate, or eliminate them
👋 Ciao, Alex here. Welcome to a new free edition of Not Just Bits. Thank you to all the readers and supporters of my work! Every week (well, almost every week—timing courtesy of my boys), I aim to share lightweight and informative resources for CTOs.
In 2025, SaaS companies operate in a challenging environment where the need to innovate, grow, and deliver value while maintaining scalability and efficiency is more demanding than ever. With priorities like retaining customers, improving developer experience, closing larger deals, and increasing revenue, determining what truly matters can feel overwhelming.
To build a strong business & tech strategy, start by taking stock of where you are now. Are your fundamentals solid? Is your technology stack aligned with your vision? A weak foundation often causes delays and bottlenecks. Cutting corners to achieve a faster go-to-market might seem tempting, but it can lead to a backlog of technical debt and a fragile system that will cost more in the long run.
Quality code doesn’t take longer; it takes focus.
Here’s how to structure a strong strategy, along with the essential elements every SaaS company should prioritise.
Core Components
1. Be Business-Aware
Define what success looks like for your SaaS company in the context of business needs. Use measurable goals to track your progress. Examples include:
Increasing annual recurring revenue (ARR) by a specific percentage.
Reducing churn to improve customer lifetime value.
Enhancing revenue per full-time employee (FTE) to boost efficiency.
Understand and align with the key business metrics driving your company’s growth and sustainability. SaaS companies thrive on a combination of growth and retention metrics, so focus your strategy on the outcomes that deliver meaningful results.
Measure and Align: Ensure all internal and external stakeholders understand these metrics. Regularly communicate progress and challenges through clear updates and collaborative discussions. This alignment ensures everyone is moving in the same direction.
2. Product Focus
Pinpoint the technical capabilities that will drive progress. This could involve building new features, improving existing ones, or ensuring the stability and scalability of your platform.
Focus on Demand Forecast: Accurately project feature adoption and resource requirements. Use tools and customer feedback to identify high-impact areas for development. Balancing demand forecasting with infrastructure readiness ensures you can scale without compromising performance.
Measure and Align: Regularly assess product metrics like feature adoption and user satisfaction. Create shared accountability across teams by tying these metrics to broader company goals.
Pitch Effectively - Demonstrate how these product investments directly impact revenue, retention, or growth during internal planning sessions to maintain alignment and support.
3. Target Market
Understand your current and future customers deeply. Who are they, and how are their needs evolving? Evaluate:
Market size and growth potential.
Upselling and cross-selling opportunities within your customer base.
Expansion into new verticals or geographies.
Invest in customer research to stay ahead of industry shifts. Use interviews, surveys, and data analytics to align your product with market demands. Set a budget for it; this is the best-invested money.
4. Competitive Advantage
Clarify why customers will choose your product over others. Focus on areas where you can sustain an edge, such as:
User Experience (UX): Make your software intuitive, fast and enjoyable to use.
Onboarding and Support: Provide seamless onboarding experiences. Use self-service resources, live support, and training to help users realise value quickly.
Security and Compliance: Build trust by exceeding industry standards in security, privacy, and regulatory compliance.
SaaS companies that invest in these areas build long-term loyalty and reduce churn.
5. What Not to Do
A strong strategy also defines what you won’t pursue. Clearly state which projects, features, or initiatives you will deprioritise. For example:
Avoid spreading resources too thin by chasing every new trend.
Say no to features that don’t directly contribute to customer value or business growth.
Being clear about what to avoid helps you focus on initiatives that deliver measurable results.
Conclusion
A clear and focused tech strategy is essential for SaaS success. Build your approach on business awareness, demand-driven product development, and deep customer insights. Start with a strong foundation, align your team with your vision, and prioritise effectively to avoid distractions and achieve meaningful progress.
A good place to start? Use the Eisenhower Matrix. This framework helps you categorise tasks and initiatives based on urgency and importance, making it easier to prioritise, delegate, or eliminate them. It’s a simple yet powerful tool to keep your team focused on what matters most. Learn more at The Eisenhower Matrix.
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See you next week! Best, Alex Di Mango