A Surprising Source of Traffic for Breakout Content Marketing


This post is by Tomasz Tunguz from Tomasz Tunguz


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Each year, I do a retrospective analysis of this blog. This year, I found something unexpected. Like many other content sites, just a handful of posts on this blog generate the majority of the traffic. I’ve plotted the distribution of traffic by post above; it’s clearly governed by a power law. The top 2% of posts generated 19% of traffic, the top 10% account for 48% and the top 20% attracted 69% (Pareto would be vindicated).

A Surprising Source of Traffic for Breakout Content Marketing


This post is by Tomasz Tunguz from Tomasz Tunguz


Click here to view on the original site: Original Post




Each year, I do a retrospective analysis of this blog. This year, I found something unexpected. Like many other content sites, just a handful of posts on this blog generate the majority of the traffic. I’ve plotted the distribution of traffic by post above; it’s clearly governed by a power law. The top 2% of posts generated 19% of traffic, the top 10% account for 48% and the top 20% attracted 69% (Pareto would be vindicated). None of that data is surprising. However, the source of traffic for the exceptionally successful posts is unexpected. The chart above shows the share of traffic generated by each channel. Twitter and Facebook which dominate the social channels generate 40% of traffic in aggregate. Direct, people typing in tomtunguz.com, generates about 35%, and so on. This data naturally led me to the conclusion that social is critical for generating exceptionally successful
Continue reading "A Surprising Source of Traffic for Breakout Content Marketing"

How Customer Success Meaningfully Reduces Cost of Customer Acquisition


This post is by Tomasz Tunguz from Tomasz Tunguz


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Thanks to Bill Macaitis, current CMO at Slack and former CMO of Zendesk, who inspired and co-authored this post When discussing customer success for SaaS startups, the conversation focuses mostly on retaining customers and reducing churn. These are two fantastic benefits with meaningful return-on-investment. But great customer success organizations can meaningfully impact another critical part of the customer lifecycle, customer acquisition, by catalyzing evangelists to refer new customers. Let’s examine a hypothetical SaaS company that acquires 1,000 customers though sales and marketing.

How Customer Success Meaningfully Reduces Cost of Customer Acquisition


This post is by Tomasz Tunguz from Tomasz Tunguz


Click here to view on the original site: Original Post




Thanks to Bill Macaitis, current CMO at Slack and former CMO of Zendesk, who inspired and co-authored this post When discussing customer success for SaaS startups, the conversation focuses mostly on retaining customers and reducing churn. These are two fantastic benefits with meaningful return-on-investment. But great customer success organizations can meaningfully impact another critical part of the customer lifecycle, customer acquisition, by catalyzing evangelists to refer new customers. Let’s examine a hypothetical SaaS company that acquires 1,000 customers though sales and marketing. Assume a standard 15 month payback period implying a CAC of $1250 per customer or $1.5M in aggregate. Each customer pays $1k annually to use the product. If customer success can convert 1 in 10 of those customers to evangelists, each of whom refers only one other customer that year, the company’s CAC drops by a third.
Impact on Growth by Customer Success for Hypothetical SaaS Continue reading "How Customer Success Meaningfully Reduces Cost of Customer Acquisition"

Why the Time to $1B in Valuation for Startups is Decreasing


This post is by Tomasz Tunguz from Tomasz Tunguz


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Are startups growing much faster than they have in the past? The chart above plots the time required for startups to raise rounds at $1B or greater valuation, over the past ten years. The blue line is a logarithmic regression demonstrating the decrease from about 7.5 years to less than 2.5 years. The answer seems to be an unequivocal yes. Let’s break this chart down by type of company: B2B and B2C.

Why the Time to $1B in Valuation for Startups is Decreasing


This post is by Tomasz Tunguz from Tomasz Tunguz


Click here to view on the original site: Original Post




Are startups growing much faster than they have in the past? The chart above plots the time required for startups to raise rounds at $1B or greater valuation, over the past ten years. The blue line is a logarithmic regression demonstrating the decrease from about 7.5 years to less than 2.5 years. The answer seems to be an unequivocal yes. Let’s break this chart down by type of company: B2B and B2C. B2B companies have taken longer to reach this valuation milestones. 10 years for Docusign. 5 for Pure Storage. But only 3 years for HortonWorks. B2C companies grow much faster than B2B companies and the data proves the trend. Social networks in particular, see faster and faster rates of adoption: Facebook, Tumblr, Twitter, Pinterest, WhatsApp, Instagram, Snapchat have reached the $1B mark faster than the other, almost in lock step with their year of founding. Why is Continue reading "Why the Time to $1B in Valuation for Startups is Decreasing"

The Importance of Segmentation for Your SaaS Startup


This post is by Tomasz Tunguz from Tomasz Tunguz


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Are you a Barry, Jill, Buzz, Angel or a Devil? This is the question Best Buy store managers posed each time a potential customer walked into one of its stores when the company decided to segment its customer base in 2005. Barrys are high-income family men. Jills are soccer moms. Buzzes are gadget lovers. Angels are the best, most-profitable, customers and buy new products at full price. Devils, on the other hand, erode Best Buys’ profits because they use coupons, find the best deals and return products frequently.

The Importance of Segmentation for Your SaaS Startup


This post is by Tomasz Tunguz from Tomasz Tunguz


Click here to view on the original site: Original Post




Are you a Barry, Jill, Buzz, Angel or a Devil? This is the question Best Buy store managers posed each time a potential customer walked into one of its stores when the company decided to segment its customer base in 2005. Barrys are high-income family men. Jills are soccer moms. Buzzes are gadget lovers. Angels are the best, most-profitable, customers and buy new products at full price. Devils, on the other hand, erode Best Buys’ profits because they use coupons, find the best deals and return products frequently. After launching this segmentation, restructuring its stores to meet the needs of these segments, and focusing on the profitable segments, Best Buy’s revenue increased 8%, an impressive figure for a retailer. As your startup scales, customer segmentation can become an important tool for the entire company, just like it was for Best Buy. Personas anchor product design and development, marketing and Continue reading "The Importance of Segmentation for Your SaaS Startup"

The Importance of Mindfulness When Managing a Startup


This post is by Tomasz Tunguz from Tomasz Tunguz


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Crisis in startups is inevitable. Products break, deadlines are missed, legal issues arise, customers raise issue, employees quit, bad press circulates. To survive, founders and management teams have to respond well and quickly. In Managing the Unexpected, two University of Michigan Professors examine the characteristics and behaviors of great teams during crisis. Factory workers, miners, fire fighters, aircraft carrier flight deck hands, railroad operators and many others. The authors call these teams HROs for High Reliability Organizations.

The Importance of Mindfulness When Managing a Startup


This post is by Tomasz Tunguz from Tomasz Tunguz


Click here to view on the original site: Original Post




Crisis in startups is inevitable. Products break, deadlines are missed, legal issues arise, customers raise issue, employees quit, bad press circulates. To survive, founders and management teams have to respond well and quickly. In Managing the Unexpected, two University of Michigan Professors examine the characteristics and behaviors of great teams during crisis. Factory workers, miners, fire fighters, aircraft carrier flight deck hands, railroad operators and many others. The authors call these teams HROs for High Reliability Organizations. HROs are distinguished by an ability to handle novel, risky situations. HROs combine distinct values and a certain type of leadership. At their core, all of these teams embody mindfulness, means five things:
  1. Preoccupation with failure - a burning desire to learn from mistakes to prevent future ones.
  2. Reluctance to simplify interpretations - employing brutal intellectual honesty in their cultures.
  3. Sensitivity to crisis - being ready to identify and respond to a crisis.
  4. Continue reading "The Importance of Mindfulness When Managing a Startup"