ProductLed Podcast How to Build a "Reverse Funnel" to Identify Your Biggest Bottleneck
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Jul 23, 2025 SaaS founders often have too much data but struggle to find meaningful insights. Discover the 'reverse funnel' framework that pinpoint users' drop-off moments, enabling targeted improvements. Learn how to structure revenue goals effectively and avoid getting lost in irrelevant metrics. Explore the power of increasing average revenue per user versus merely focusing on acquiring new customers. Gain actionable strategies for data-driven growth and overcoming common revenue challenges.
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Reverse Funnel Reveals Bottlenecks
- Most SaaS founders track many metrics but lack insight into their biggest growth bottleneck.
- A "reverse funnel" framework helps identify exact drop-off points and key levers to pull for revenue goals.
Simplify Metrics For Clarity
- Instead of tracking many disjointed metrics, focus on a simple funnel with MRR, ARPU, and units sold.
- This streamlined approach provides clearer context and helps prioritize growth efforts effectively.
Break Down Goals With Projects
- Reverse engineer your revenue goals by breaking down MRR, ARPU, and units sold.
- Use these metrics to create targeted projects improving conversion rates and user engagement to hit goals.