This is a complaint I have heard a few times from the sales guy in one of the companies I am involved with. But this time I thought I will do some digging into it.
Here is some context. We routinely do role playing in the company before a sales meeting with a new prospect. We were discussing a particular sales opportunity and we were playing roles – me being the prospect and him trying to sell me on the value proposition. A good demo and compelling value proposition tailored to that prospect and there was a reasonable chance of clinching that deal.
As he started his narrative – there were a couple of instances where the sales guy was interrupted by my abrupt interjection. As is my wont, it took only a few minutes for me to jump in and hijack the discussion. He complained “You never let me
Continue reading "You never let me finish my point!!"
It’s the dream of every Internet entrepreneur to build a business that goes viral. Yet the sad truth is that most do not. It’s hard to think of any other industry with such a winner-take-all mentality as Internet software. The volatile combination of small market entry costs and big network effects creates wave after wave of disruption and consolidation, and quite a few millionaires along the way. Alas, virality is an elusive goal, particularly in SaaS. For this reason, SaaS Don’t #10 insists that you should not depend on network effects. Instead you should focus first and foremost on satisfying each and every single customer. But, if you’ve done that…bring on the hockey stick!
This is the fourth post in a series that paves the path to sustainable SaaS growth. The first post in this SaaS growth series introduced the concept of the SaaS growth ceiling, as well as the three fundamental SaaS marketing levers for breaking through it: customer acquisition, customer lifetime value and viral customer network effects. This installment explores the third, final and most funnest SaaS marketing lever: network effects, offering three proven SaaS marketing strategies to drive SaaS growth by getting your customers to sell themselves.
The Roof is On Fire!
You don’t need a PhD in economics to understand network effects; you just need to know how to throw a party. No one wants to go to a lame party. The more people that are going to a party, the more other people want to go. And, the more they are willing to pay to get in. If you’ve ever tried to get people to move from one party to the other, say from dinner to dancing, then you know that you have to get them ALL to move at once, or nobody moves. Finally, if your party gets big, crowded and mainstream, the hipsters start leaving to find the next big thing. So, let’s party!
Continue reading "Breaking Through The SaaS Ceiling"