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:

The 5 Pillars for Product-led Growth using Product Qualified Leads

A practical guide to turn your product into your best growth tool

In my previous post Why Product Qualified Leads Are Rapidly Being Adopted In SaaS I wrote about the main drivers that led many SaaS companies to adopt a new and more effective approach to qualify prospects. That new approach hinges on leading with the product and using feature and usage as primary lead qualification metrics.

PQL vs MQL

I’ll open with an interesting fact published by SiriusDecisions with regards to marketing qualified leads (MQLs):
98% of marketing qualified leads never result in closed business.
Assuming marketing is judicious about which leads it sends to sales for follow-up, clearly MQLs are not the best way to model leads. Traditional MQL model The traditional MQL model In the traditional MQL model, marketing teams focus on nurturing prospects from awareness to qualified leads. The goal is for marketing to fill up the sales pipeline,
Emerging PQL Model
PQL Model in PLG Strategy
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