Is Your Product Right for Product-led Growth?

Editor’s Note: Product-led growth is a go-to-market strategy propelling the rapid expansion of companies like Slack, Dropbox and Expensify. In fact, we’re seeing it as the primary driver behind many of the companies OpenView has invested in most recently. We feel this strategy is so important to SaaS companies looking to scale, we’re ungating our Product-led Growth Playbook, which features advice on how to implement a PLG strategy in your own company. You can access the full book here and read the eight characteristics of PLG companies below.
There are primarily eight characteristics that product-led growth companies embody. Without following at least some of these eight qualities, it is extremely difficult to make a PLG strategy work for your current product or company. These eight characteristics are:

1. The product market conditions are right for the strategy.

When it comes to implementing a product-led growth strategy, the right market conditions
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Scaling Your B2B Product? Be Sure to Consider These Areas First.

With growth comes challenges. When your B2B startup begins entertaining larger deals, your customers’ needs grow in complexity. And when you scale to meet those needs, it’s easy for your product to fall short. The good news is that you can learn from the experiences of other B2B SaaS companies to predict where many of these shortfalls will occur. In working with product leaders at B2B SaaS companies, we’ve seen similar patterns and themes as these companies scale. Every company is different, and not all of this is exclusive to B2B SaaS, but we find these to be the most common areas that need attention when scaling:
  1. Roles and Permissions
  2. Onboarding Experience
  3. In-Product Communication
You won’t be able to anticipate every problem, but you can shore up these known troublemakers. Knowing what to anticipate as you scale enables your team to better prepare and to reduce future headaches.

Roles and
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Pricing: ProfitWell’s Patrick Campbell on Monetizing Your Customer Base [Podcast]

SaaS pricing, every business thinks about it, but the majority rarely act. In this episode of BUILD, hear from Patrick Campbell, Co-founder & CEO of ProfitWell, on the importance of pricing, the impact of freemium, and the metric you should use to drive value for your customers. Plus, Deputy COO, Craig Harris, weighs in on his business’ go-to-market model and how it impacted the company’s big pricing initiative. Prefer to listen in iTunes? Click here.
The post Pricing: ProfitWell’s Patrick Campbell on Monetizing Your Customer Base [Podcast] appeared first on OpenView Labs.

Assume the Customer Knows Everything

Recently, as SaaStr itself has turned into a real business, with a real team, and eight figures in revenue, it’s caused me to focus and challenge some prior assumptions I’ve made. There’s one new rule I’ve come up with to help unite sales, customer success, marketing and product:  Assume Every Customer Knows.  Everything. By that, I mean:
  • Make sure your sales team assumes every customer knows everyone else’s discounts.  This ensures they are at least fair, and in the end, which will lead to higher NPS and net revenue retention.  If you are giving Facebook a crazy deal at $50k and quoting Google the same deal at $250k, is that OK?  If it is, so be it.  But assume at your first customer conference, on a webinar they do to help you, on a recommendation call … that eventually at least, they all know.  Continue reading "Assume the Customer Knows Everything"

Pricing Insights from 1,800 SaaS Companies

In November 2016, we launched a tool for SaaS companies to assess their pricing maturity and get advice on how to take their pricing to the next level. Now a year and a half later, we’ve had 1,800 SaaS companies participate. This dataset offers a unique vantage point into how SaaS companies approach their pricing and packaging. After crunching the numbers, here’s what we learned.

There’s still untapped opportunity to improve pricing

Our pricing calculator graded companies on a scale from 0 to 100 based on their pricing capabilities. To achieve an Excellent score of 80 or above, companies needed to hone their target market and buyer, conduct pricing research and/or testing, and have a process for revisiting pricing over time. Only 4% of companies actually received an Excellent score. Later stage companies were a bit better than their early and expansion stage peers, but even the vast majority of
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SaaS Pricing: Strategies, Frameworks & Lessons Learned

Setting the initial price for your product may be the decision that has the single biggest impact on your bottom line profitability. It also conveys signals about brand image, product quality, and even affects whether customers will consider purchasing your product at all. Unfortunately, setting that initial price is often based on guesses and trial and error. At thoughtbot we’ve helped our clients design, build, and launch hundreds of products. We’ve also launched some of our own. Here are some of the things we’ve learned along the way about what works, and what doesn’t, when setting the initial pricing of your product.

Pay what you want

When we first launched FormKeep we had no idea what we should charge. FormKeep provides form endpoints that you can use to back web-forms, often on static websites. This lets you accept data on your website without building a backend. We felt that the
Price per session
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For how long should a CEO continue being the head of products?

Roughly for me, for as long as it’s about a 10-hour a week job. Or often, maybe only up to $3m-$5m in ARR or so. In SaaS at least, founders make two mistakes:
  • First, try to hire a full-time “head of product” once the product gets complex. Once your product has 50–100 workflows, dozens of use cases, 100s or 1000s of customers, etc. … it’s just too much to hack and juggle informally. My rough rule of thumb is somewhere between $3m and $5m in ARR in SaaS most products just get too complicated to hack product anymore. You’ll ship better prioritized features, with happier customers, with better trade-offs, with a full-time head of product. CEOs that hang on too long here start shipping features and products that are no longer force-ranked the way they should be. And the key is to hire a true head of product. Someone that Continue reading "For how long should a CEO continue being the head of products?"

What I Learned from OpenView’s Product-Led Growth Summit

On May 9th, OpenView convened 100+ SaaS leaders from our portfolio and network for our second annual Product-Led Growth Summit in San Francisco. The event and proceeding ‘Growth Office Hours’ were filled to the brim with new connections, sage advice and in-the-trenches stories from operators. Here are our most important takeaways. Darius Kyle Brian PLG Summit

First off, what the heck is Product-Led Growth?

Not just another buzzword…product-led growth is an important go-to-market strategy that underpins some of today’s most successful businesses. Think Dropbox, Slack, Intercom, Expensify and Datadog. Here at OpenView, we define product-led growth (PLG) as a strategy that puts the product front and center when it comes to how a company acquires, expands and retains customers. Relying on a product-led strategy yields rapid, extremely efficient growth. Although similar to a freemium approach, a product-led growth strategy doesn’t actually require that you offer your product for free. It does however necessitate an
Elena Verna PLG Quote
Todd Jackson PLG Quote
Merci Grace PLG Quote
Tomer Cohen PLG Quote
Brian Blafour PLG Quote
Dannie Chu PLG Quote
Ashik Ahmed PLG Quote
PLG Ashley Tope
Tope Awotona PLG Quote
Andy Wilson PLG Quote
Continue reading "What I Learned from OpenView’s Product-Led Growth Summit"

What I Learned from OpenView’s Product-Led Growth Summit

On May 9th, OpenView convened 100+ SaaS leaders from our portfolio and network for our second annual Product-Led Growth Summit in San Francisco. The event and proceeding ‘Growth Office Hours’ were filled to the brim with new connections, sage advice and in-the-trenches stories from operators. Here are our most important takeaways. Darius Kyle Brian PLG Summit

First off, what the heck is Product-Led Growth?

Not just another buzzword…product-led growth is an important go-to-market strategy that underpins some of today’s most successful businesses. Think Dropbox, Slack, Intercom, Expensify and Datadog. Here at OpenView, we define product-led growth (PLG) as a strategy that puts the product front and center when it comes to how a company acquires, expands and retains customers. Relying on a product-led strategy yields rapid, extremely efficient growth. Although similar to a freemium approach, a product-led growth strategy doesn’t actually require that you offer your product for free. It does however necessitate an
Elena Verna PLG Quote
Todd Jackson PLG Quote
Merci Grace PLG Quote
Tomer Cohen PLG Quote
Brian Blafour PLG Quote
Dannie Chu PLG Quote
Ashik Ahmed PLG Quote
PLG Ashley Tope
Tope Awotona PLG Quote
Andy Wilson PLG Quote
Continue reading "What I Learned from OpenView’s Product-Led Growth Summit"

SaaStr Podcast #172: Jon Lee, Founder & CEO @ ProsperWorks on Why It Is Easier To Start In SMB and Work Your Way Up

Welcome to Episode 172! Jon Lee is the Founder & CEO @ ProsperWorks, the #1 recommended CRM for G Suite. To date, ProsperWorks have raised over $85m in VC funding from the likes of True Ventures, Norwest, GV, Bloomberg Beta, and more incredible names. Prior to ProsperWorks, Jon started in investment banking at Merrill Lynch before moving to run a large operations team at Yahoo. Jon then founded Bazaar Advertising Solutions, a business self funded from a Palo Alto apartment that Jon scaled into a highly profitable $47m business in less than 2 years. Jon then sold Bazaar to Epic Media in 2006. Following the acquisition, Jon founded DNA Games, the number one casino simulation game on Facebook with more than 20 million players, ultimately acquired by Zynga in May 2011. In Today’s Episode You Will Learn: