Graduation Criteria

You’ll know you’re ready to move to the Efficient stage once:

  1. Multiple Market Segments -You serve multiple ICPs with distinct messaging and product variations, each generating significant revenue.
  2. Strong Market Recognition - Analysts, partners, and media see you as a leader. You might receive industry awards or appear on best-of lists.
  3. Expanded SAM - You’ve proven an ability to move into new segments successfully while still growing your initial core segment.
  4. High Net Dollar Retention - Even as you diversify, customers expand usage. This suggests the new solutions align well with your existing base.
  5. Coherent Multi-Year Strategy - You have a clear roadmap that outlines product expansions, potential acquisitions, or significant partnerships, along with the organizational changes needed.
  6. Segment-Specific Sales & Marketing - Your go-to-market approach includes specialized teams or campaigns for each segment, with separate KPIs and budgets.
  7. Global or Multi-Regional Presence - You’ve likely expanded beyond a single region, at least in marketing or sales capacity, if not in full operational presence.
  8. Predictable Gross and Net Retention - You’ve maintained or improved churn metrics even as you broadened your reach, indicating a mature retention framework.

Robust Executive & Mid-Level Teams - Department heads have their own managers, possibly in multiple geographies. The CEO can focus on big deals, partnerships, and the overarching strategy.