Summary: - focus on retention and monetization instead of just acquisition - talk to 50+ customers - survey customers too - Develop customer personas and have numbers on them : LTV, CAC, WTP (willing to pay) - Using personas develop chart of features vs revenue, and graph personas... Relative Preference Analysis - Find right pricing point and price elasticity for your product.
To overcome acquisition addiction: 1. know your numbers 2. quantify your buyer persona 3. implement a customer development process Know your numbers Go to customers, talk to them Price sensitivity analysis Be customer focused
WOW!!! This is an amazing story to tell AND is not just relevant to the SaaS industry. I've spent a career in other industries and this "sickness" on the primary focus of new acquisition versus how to retain and monetize current customers is prevalent in lots and lots and lots of business executives in a lot of different companies/industries. This lack of focus allows for competitors to enter into the buying decision which then starts the "commodity" conversion of the product. Very good stuff and would recommend for anyone in or out of the SaaS industy
Hah, exactly what I was thinking to myself. Came in here to comment and saw you did already. Easy 🤑 is to blame for a lot of this reckless focus on customer acquisition, esp a freemium model which has 90pc of free customers with 10pc paid. Who's making money in this scenario??
If there is one thing you should get from this video, It is: "Talk to your customers". Although it looks like a pretty basic recommendation many product managers ignore it and prefer to rely on reports in the comfort of their offices.
I'm thinking about acquisition, monetization, and retention constantly, even before we had any product in the market yet. It's common sense! I'm really surprised by these numbers. It's been 3 years since this was uploaded, I hope things have changed since then. Acquisition without retention? This is a nightmare.
I work head to head with SaaS companies, and you just can't imagine the churn rates caused by not caring about customer retention, as well as the really poor monetization caused by the poor CRO on their websites...a real nightmare! I'm a consultant, by the way.
@@SaaStock 'but what's interesting about this is'..........that it aligns with Chamath Palihapitiya' shade on the valley as a (multivariant ponzi-scheme) and Michael Siebel saying plainly that (his job is to craft pure garbage made up data about the eco-system that gets fed to Twitter / TechCrunch etc which everyone consumes) Isn't it any wonder why its so screwed up?? th-cam.com/video/NVVsdlHslfI/w-d-xo.html th-cam.com/video/OLz-yHM3CLw/w-d-xo.html (00:06:42 - 00:07:59)
Its monetizing your existing customers, for example : a customer A pays standard plan for 35 dollars per month. Push him to take a premium plan of 50 dollars per month
Boxed Software was overpriced for decades and SaaS Software is usually much much worse. A few like Adobe and MS are offering value for a low enough price but others smaller are really ripping off people.
Summary:
- focus on retention and monetization instead of just acquisition
- talk to 50+ customers
- survey customers too
- Develop customer personas and have numbers on them : LTV, CAC, WTP (willing to pay)
- Using personas develop chart of features vs revenue, and graph personas... Relative Preference Analysis
- Find right pricing point and price elasticity for your product.
Thanks a lot for this summary!
Great
ThunderousGlare Thanks!
Summary: do marketing
Very interesting and helpful. Thank you
That might have been the most well executed 30 min presentation that I’ve ever seen.
Yeah, so clean
To overcome acquisition addiction:
1. know your numbers
2. quantify your buyer persona
3. implement a customer development process
Know your numbers
Go to customers, talk to them
Price sensitivity analysis
Be customer focused
WOW!!! This is an amazing story to tell AND is not just relevant to the SaaS industry. I've spent a career in other industries and this "sickness" on the primary focus of new acquisition versus how to retain and monetize current customers is prevalent in lots and lots and lots of business executives in a lot of different companies/industries. This lack of focus allows for competitors to enter into the buying decision which then starts the "commodity" conversion of the product. Very good stuff and would recommend for anyone in or out of the SaaS industy
"It costs 10x more to acquire a new customer than to retain one"
Ryan Howard, MBA
Dunder Mifflin New York
Ex VP
Youngest VP in the companies history!
@@thomasmorgan7712 never made a sale!
That was FASCINATING!
😂
They want more logos because they get money from VCs, not from the market. A rational strategy in an irrational environment.
yes, they acquire more customers that influence the big company to acquire the startup & the founder get an wealthy exit point.
Hah, exactly what I was thinking to myself. Came in here to comment and saw you did already. Easy 🤑 is to blame for a lot of this reckless focus on customer acquisition, esp a freemium model which has 90pc of free customers with 10pc paid. Who's making money in this scenario??
18:11 - 18:15 👌 that summarizes the spiral that the companies find themselves in & what can get them out of it.
Great delivery, well worth the watch.
Thank you for sharing. Invaluable information indeed.
"What's interesting about this is..."
Everything. The whole video was very insightful. Thanks
Great Speaker Thank you for wondeful video :)
I totally agree with this gentleman - I used to focus on "logo quantaties" but have realised that monetiziation and retention is way more valuable
What are logos?
Awesome look from nowadays into the future of your SaaS. Of course, if your SaaS will survive before future comes.
Fantastic, thank you for sharing, amazed by your knowledge, the way you put it across, subtle sense of humor and lovely pitch
If there is one thing you should get from this video, It is: "Talk to your customers". Although it looks like a pretty basic recommendation many product managers ignore it and prefer to rely on reports in the comfort of their offices.
Patrick it was really great. thanks mate
I love data!! Thanks for sharing this amazing talk 😍
good talk patrick. :)
I'm thinking about acquisition, monetization, and retention constantly, even before we had any product in the market yet. It's common sense! I'm really surprised by these numbers. It's been 3 years since this was uploaded, I hope things have changed since then. Acquisition without retention? This is a nightmare.
I work head to head with SaaS companies, and you just can't imagine the churn rates caused by not caring about customer retention, as well as the really poor monetization caused by the poor CRO on their websites...a real nightmare!
I'm a consultant, by the way.
go to 12:22 with subtitles on
I didn't need the subtitles... My ears picked it up the first time around :) .
What's the update on that graph post-2020?
More Logos - reminds me of a software reseller who took pride in covering an entire powerpoint slide with logos of their customer base!
Awesome video!
Very Nice Presentation
19:30 How do we fix this
What does logos mean in this context when you say companies are focused on getting more logos?
more name brands or new companies
More customers
Logos in their landing page
wow... just wow.
Good job pal. 🥇
Great lecture!
Thnx for this presentation
fantastic
This guy is good ...
Maybe more than good
@@SaaStock i agree ...
Did anyone count the number of times he said 'Fascinating'?
no but we found it fascinating
@@SaaStock 'but what's interesting about this is'..........that it aligns with Chamath Palihapitiya' shade on the valley as a (multivariant ponzi-scheme) and Michael Siebel saying plainly that (his job is to craft pure garbage made up data about the eco-system that gets fed to Twitter / TechCrunch etc which everyone consumes) Isn't it any wonder why its so screwed up??
th-cam.com/video/NVVsdlHslfI/w-d-xo.html
th-cam.com/video/OLz-yHM3CLw/w-d-xo.html (00:06:42 - 00:07:59)
Thnx for presentation, its very nice :-)
Can you share the slides plz ?
NO
Nice tips for SaaS Companies
Jeff bezos created Amazon by being a customer centric company in 1994. After many year, only few companies do it.
Isn't that hilarious
it would be more enjoyable to watch if the audio was better and the slide was bigger
This was awesome mate.
Hi
What does improving your monetization mean here? Is it your pricing model?
Its monetizing your existing customers, for example : a customer A pays standard plan for 35 dollars per month. Push him to take a premium plan of 50 dollars per month
"Fascinating"! Isn't it? ;)
And what interesting about this... :)
it is fascinating
Watching this in 2022. Is it at zero yet?
What’s pretty interesting is that it’s scary
Isso o TH-cam não me recomenda...
Boxed Software was overpriced for decades and SaaS Software is usually much much worse. A few like Adobe and MS are offering value for a low enough price but others smaller are really ripping off people.
This is a somewhat stretched speech it's hard to listen too. Could be delivered in 5 minutes.
Disagree. This is all great info (especially for late 2017). He wasn't talking fluff.
L
L