By Lenny Rachitsky · lennysnewsletter.com · @lennysan on X · YouTube · LinkedIn
Lenny Rachitsky answers a reader question about growth and retention during the 2020 coronavirus downturn by compiling advice from growth operators, investors, and HBR. The core argument is that founders should first diagnose which mode they are in (survival, tweak, or accelerate), then protect optionality through scenario planning, cash discipline, and rapid messaging and channel changes. He also stresses taking care of customers and team through transparent communication. The advice matters because it offers a practical playbook for product and growth leaders navigating an unprecedented, uneven economic shock.
01Key takeaways
- Classify your business as growing, struggling, or steady before choosing any tactic.
- Model worst-case and upside scenarios so you can preserve optionality under uncertainty.
- Appoint one accountable owner with authority to reset priorities quickly.
- Monitor cash position on a rolling basis and postpone non-essential spending.
- Shift creative and messaging toward safety, convenience, and remote-friendly use cases without exploiting the crisis.
- Use flexible customer terms like free months and short-term commitments to protect retention and cash flow.
02Key sections
- Diagnose your position
- Companies should first classify themselves as growing, falling apart, or steady, since sector determines which playbook fits. Different buckets call for different tactics, such as land-grab prospecting versus pausing acquisition to focus on retention.
- Scenario planning and optionality
- Build worst-case and upside scenarios, then preserve flexibility by cutting spend and keeping the team intact. Avoid knee-jerk pricing or policy changes that damage customer trust.
- Incident response and speed
- Appoint a single accountable leader with authority to reset OKRs and channels quickly. Keep decisions fast, use living documents, and avoid bureaucracy.
- Cash, messaging and customers
- Extend runway, monitor cash weekly, and reposition messaging around remote work and convenience while avoiding exploitative references to the crisis. Offer flexible terms, free months, and friction-reducing free tiers to keep customers and build habit.
- Leading the team
- Communicate clearly and transparently with employees, explaining the reasoning behind decisions to reduce anxiety. Consider social good, such as free offerings to schools and nonprofits.
03From the post
“Hello and welcome to another edition of my weekly newsletter! My name is Lenny, and each week I tackle reader questions about product, growth, working with humans, and anything else that’s stressing you out at the office. Send me your questions (just reply to this email or DM me) and in return, I’ll humbly offer some real-talk advice. 🤝 If you find this newsletter valuable, consider sharing it with a friend 🤜🤛 Q: Like many startups these days, we’re struggling with growth and retention as a result of the Coronavirus downturn. Any advice on what we should do? I’ve been increasingly getting this question, so I’m going to take my best shot at it this week. Since I’m not inside a company dealing with this personally, I’ve instead pulled together recommendations from the best growth people I know — people who are on the ground doing the work right now. The first thing to know is that you are not alone in this. Let’s just acknowledge: This shit is hard. If you are sitting there thinking, oh man this feels…”
04Frameworks mentioned
Summary and takeaways written by PM Atlas; quotes are short excerpts. © the original author.