In the dynamic world of SaaS, the journey from a services-based company to a successful SaaS business is a challenging endeavor. Ulf Arnetz, the founder and chairman of Howwe Technologies, with its groundbreaking SaaS solution that accelerates strategy execution and financial growth for enterprises, knows this journey all too well. In a recent feature on the SaaS Club podcast, Ulf shares his inspiring story of perseverance and triumph in the face of significant obstacles. Join us as we explore the remarkable transformation of Howwe and the invaluable lessons learned along the way.
The Decision to Transition
Having achieved remarkable success running a services company for several years, Ulf and his team recognized a tremendous growth opportunity in transitioning to a SaaS business model. In 2017, armed with a powerful SaaS product they had been developing, Ulf made the pivotal decision to embark on this transformational journey. Little did he know the challenges that lay ahead.
Navigating Revenue Drops and Sales Challenges
Transitioning to SaaS brought about unforeseen hurdles. Howwe Technologies experienced a considerable drop in annual revenue, plummeting from $5 million to approximately $2 million in Sweden. While Ulf had anticipated a temporary decline, the magnitude of the drop caught him by surprise. Furthermore, selling their SaaS product to CEOs proved to be an uphill battle, as objections from other key executives resistant to change often resulted in lost deals.
Overcoming the Churn Conundrum
Perhaps one of the most significant challenges Howwe Technologies faced was an alarming 40% churn rate. Dissatisfaction with the SaaS product led to widespread employee discontent. However, Ulf and his dedicated team were determined to prevail. They persisted, continually refining their product, and ultimately achieved the elusive product/market fit.
Key Lessons and Successes
In the podcast episode, Ulf Arnetz shares invaluable insights gained from his journey:
- Bouncing back from a $3 million revenue drop and surpassing the $5 million mark, in Sweden alone, and experiencing substantial global growth, with 96% of revenue coming from SaaS subscriptions.
- Strategies for effectively selling their SaaS product to CEOs with in increase in hit rate of 300%, while addressing objections from resistant executives.
- Overcoming the daunting 40% churn rate, reducing it to 0% over a three-year period and retaining customers.
- How the customers of Howwe achieved a remarkable 20X return on investment (ROI) and Ulf’s methods of measuring and proving this value.
- Embracing competition and remaining optimistic about the entry of big players like Microsoft, offering advice for founders facing similar challenges.
The journey from services to SaaS is filled with hurdles, but Ulf Arnetz’s story demonstrates that perseverance and a relentless focus on improving can lead to remarkable success. Howwe’s transformation is a testament to the power of resilience and the ability to adapt in an ever-evolving market. Tune in to the SaaS Club podcast episode featuring Ulf Arnetz to gain invaluable insights and inspiration for your own SaaS journey. Let Ulf’s experiences guide you as you navigate the challenges and ultimately emerge victorious in your pursuit of SaaS excellence.
Listen to the full podcast episode here and unlock a world of possibilities.
Remember, the road to success is rarely smooth, but with determination and an unwavering commitment to improvement, you can overcome any obstacle and achieve greatness in the world of SaaS.
Howwe Technologies has set out to change CEOs’ digital behavior through a revolutionary solution for growth, Howwe®. The software accelerates enterprise strategy execution that enables rapid realignment in response to disruptions, shortening the timeline from CEO decisions to alignment and organizational acceleration of needed activities and focus, overall drastically shortening the timeline for goal fulfillment according to the strategy, or what the CEO has decided as most important.