When Growth Slows, SaaS Leaders Reach for Short-Term Levers That Cost Trust

CROs default to “crappy” levers when the pipeline stalls

Lemkin notes that once growth decelerates, CROs flood the boardroom with proposals to raise prices, scrap free or low-end editions, and lock customers into annual or multi-year contracts When growth slows, folks start wanting to do the crappy things – fight it. He argues each of these tactics trades “long-term trust for one quarter of numbers.”

The short-term boost is illusory

Price increases can lift a quarter’s headline, and forced upgrades may temporarily improve net-revenue-retention (NRR). Yet Lemkin stresses that these gains come at the expense of goodwill, which “doesn’t show up on a board deck until it’s gone.” Removing free tiers also cuts the pipeline of the next 1,000 customers, while mandatory multi-year deals merely defer churn.

Falling switching costs amplify the risk

The author points out that B2B switching costs are collapsing, especially as AI-native alternatives emerge. Customers now evaluate vendors quarterly and can build replacements with a few agents and a “vibe coding tool.” Consequently, surprise price hikes or punitive contract terms give customers a concrete reason to leave, accelerating churn beyond 2027.

Lemkin concludes that founders must redirect energy toward winning market share and delivering product improvements, rather than extracting more pain from the existing base. He admits even he is wary of signing up for traditional SaaS contracts, preferring vendors that keep onboarding easy, iterate the product, and avoid trapping clauses.

Our read: Lemkin’s piece is a cautionary account of how short-term revenue tactics can hollow out the customer relationship, especially as alternatives become easier to build and switch to. The implied remedy is to invest in product and growth rather than rely on price-driven extraction.