SaaS companies must contend with the challenge of 'Champion Change,' where key stakeholders who advocate for their products at large customers typically stay about 24 months, according to SaaStr. This turnover means SaaS vendors often need to re-sell their solutions to the same customers every two years to maintain their business relationships.
Jason Lemkin of SaaStr highlighted that when a champion—the stakeholder who initially brought in and supported a SaaS product—leaves, the incoming decision-maker may favor a different vendor. This risk is especially acute in competitive markets where new stakeholders might bring preferred suppliers from previous roles, potentially displacing existing vendors regardless of customer satisfaction or product customization.
The phenomenon underscores a significant retention challenge for SaaS firms working with enterprise clients. Even high Net Promoter Scores (NPS) and deep integration into a customer's workflow may not safeguard against losing business when internal champions exit. This dynamic affects customer success strategies and requires continuous engagement with evolving client personnel.
Nick Mehta of SaaStr advises SaaS companies to closely monitor changes in client stakeholders and act swiftly to secure new champions. Maintaining awareness of personnel shifts is critical to sustaining long-term customer relationships in the SaaS industry, where champion turnover averages around two years.