Tuesday has an exciting opportunity to improve its outlook in the short term with a relatively small investment into revamping its sales & marketing strategy. Our plan is to add two more sales team members and increase marketing spend by 50%. See the linked memo to the right for a detailed description of our solution.
Learn more about our plan to positively impact growth trends while we prepare for our Series C round next year.
Why Sales & Marketing?
Tuesday made the decision to revamp our sales & marketing strategy based on a few key factors. First, our revenue growth rate has been leveling off around 4.5% over the last year. In order to reinvigorate our revenue streams, we are adding two new sales team members and a dedicated customer success team. This customer success team will also help decrease our customer churn rate, leading to greater lifetime value of customers.
We forecast our strategy will speed up our path to profitability by 3-8 months, decreasing the urgency of our next funding round which is projected to be in ~12 months.
Analyzing Our Problem
Tuesday’s growth has slowed due to increasing customer churn and customer acquisition cost, leading to a decreasing lifetime value of customers. This leveling off must be addressed to address Tuesday’s underlying burn rate – our expenses exceed our revenue. In order to bridge the gap to our next round of funding, we made the decision to invest in revamping our sales & marketing strategy.
By investing in our Sales & Marketing team, we will be able to expand our core product’s customer base. This will lead to an increased revenue growth rate, positively impacting our valuation at our next funding raise. It will also decrease our time to profitability by 5 months from a currently projected July 2022, to February 2022*. Specifically, we will be
*Assuming a 3% increase in revenue growth rate due to investment.
We will be closely monitoring key metrics in order to track the success of our investment.
SALES TEAM SIZE INCREASE
CUSTOMER RETENTION RATE
ACQUISITION COST DECREASE
Where are we going?
- Now: Sales & Marketing investment to increase revenue in the short term ahead of our next funding round.
- Near Future: Investment in leadership as our employee team grows.
- Longterm: Investment in diversifying our product as our loyal customer base increases.
Who We Are
Tuesday is a Software as a Service company providing productivity software to businesses in order to maximize their team’s efficiency and organization.
“Tuesday; the software that makes me want to smash that like button everyday.”