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Rippling CFO Adam Swiecicki on Building a Compound Startup and Channeling Ambition

Run the Numbers

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Maximizing Customer Value through Product Upselling and Monetization

The company focuses on landing customers with a core set of products tailored to their needs, then upselling additional products as their businesses grow. By analyzing cohort data, there is a consistent trend of increasing customer value and product usage over time. This strategy results in a higher average contract value for customers, similar to enterprise-level contracts, despite primarily targeting small businesses. By effectively cross-selling and selling to small businesses experiencing above-average growth, the company maintains attractive unit economics. They determine customer acquisition spending based on customer lifetime value, which is significantly below the industry average payback period of 30 months for SaaS companies.

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