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2018 Tech Adoption Summit: Headline Talk — Adam Blake, CMO & GM of SaaS, ThriveHive

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This session was presented at the LSA’s Tech Adoption Summit in San Francisco on November 6-7, 2018.

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2018 Tech Adoption Summit: Headline Talk — Adam Blake, CMO & GM of SaaS, ThriveHive

  1. 1. Product First Go To Market Strategy 2018 Tech Adoption Summit
  2. 2. I’ve Been a SMB Owner and Spent the Last 13 Years Trying to Sell to SMBs Currently CMO at ThriveHive where we provide everything you need to market your business online - all wrapped in Guided Marketing
  3. 3. The Elephant in the Room: Customer Acquisition Costs are Up Over 50% in the Last 5 Years Source: Price Intelligently
  4. 4. Product First Go To Market Strategies are a Remedy for Increasing Customer Acquisition Costs Source: Price Intelligently
  5. 5. Sales Efficiency is at the Heart of Why Product First Customer Acquisition Makes Sense Numerically Outbound Cold Calling Close Rates: 0.1% Inbound Warm Calling Close Rates (MQLs): 1% Product Qualified Lead Close Rates (PQLs): 10%
  6. 6. Changing Consumer Behavior is at the Heart of Why Product First Customer Acquisition Makes Sense Strategically
  7. 7. Product First Go To Market Companies Perform Better Source: OpenView Company Shopify (NYSE:SHOP) Atlassian (NASDAQ:TEAM) DocuSign (NASDAQ:DOCU) Dropbox (NASDAQ:DBX) Zendesk (NASDAQ:ZEN) New Relic (NYSE:NEWR) Twilio (NYSE:TWLO) LogMeIn (NASDAQ:LOGM) HubSpot (NYSE:HUBS) Wix (NASDAQ:WIX) Smartsheet (NYSE:SMAR) Pluralsight (NASDAQ:PS) SendGrid (NYSE:SEND) MongoDB (NASDAQ:MDB) PLG Index Median SaaS Index Median Median Metrics PLG Companies 35.1% 26.6% 73.8% 42.8% 37.7% 10.0x 7.6x Non-PLG Companies 25.3% 21.0% 69.3% 37.0% 31.4% 7.7x 6.2x Delta, PLG to Non-PLG 9.8% 5.6% 4.5% 5.9% 6.2% 2.2x 1.4x Valuation Drivers Revenue Growth Gross Margin Rule of 40 2018E 2019P TTM 2018E 2019P Valuation EV / Revenue Multiple 2018E 2019P
  8. 8. What Defines a PQL with SMBs? 1. Firmographic Fit - I have the right type of business
  9. 9. What Defines a PQL with SMBs? 1. Firmographic Fit - I have the right type of business 2. Marketing Behavior - The marketing behavior indicates a need for a solution in my space
  10. 10. What Defines a PQL with SMBs? 1. Firmographic Fit - I have the right type of business 2. Marketing Behavior - The marketing behavior indicates a need for a solution in my space 3. Product Behavior - The product usage indicates that my product is a good fit with this buyer
  11. 11. MQL Funnel ProductAwareness Content Download Traffic Email Nurture Sales Interaction Completed Sale Time Marketing focus is on developing signals to tell sales who the best prospects are
  12. 12. MQL Funnel ProductAwareness Content Download Traffic Email Nurture Sales Interaction Completed Sale Time Marketing focus is on developing signals to tell sales who the best prospects are Free Product
  13. 13. What are Hallmarks of an Effective Product First Go To Market Strategy? ● Free forever product instead of a free trial
  14. 14. What are Hallmarks of an Effective Product First Go To Market Strategy? ● Free forever product instead of a free trial ● Simple freemium product value proposition that marketing can explain
  15. 15. What are Hallmarks of an Effective Product First Go To Market Strategy? ● Free forever product instead of a free trial ● Simple freemium product value proposition that marketing can explain ● Ability of a customer to completely self -provision free product
  16. 16. What are Hallmarks of an Effective Product First Go To Market Strategy? ● Free forever product instead of a free trial ● Simple freemium product value proposition that marketing can explain ● Ability of a customer to completely self -provision free product ● A large top of the funnel (you’re converting a subset of your MQLs)
  17. 17. What are Hallmarks of an Effective Product First Go To Market Strategy? ● Free forever product instead of a free trial ● Simple freemium product value proposition that marketing can explain ● Ability of a customer to completely self -provision free product ● A large top of the funnel (you’re converting a subset of your MQLs) ● Viral adoption of the free product
  18. 18. What are Hallmarks of an Effective Product First Go To Market Strategy? ● Free forever product instead of a free trial ● Simple freemium product value proposition that marketing can explain ● Ability of a customer to completely self -provision free product ● A large top of the funnel (you’re converting a subset of your MQLs) ● Viral adoption of the free product ● Tight connection between the free product and the paid product
  19. 19. What are Hallmarks of an Effective Product First Go To Market Strategy? ● Free forever product instead of a free trial ● Simple freemium product value proposition that marketing can explain ● Ability of a customer to completely self -provision free product ● A large top of the funnel (you’re converting a subset of your MQLs) ● Viral adoption of the free product ● Tight connection between the free product and the paid product ● Tight integration between the product and your CRM
  20. 20. Building a Great Free Product is Usually Harder than Converting Free Users into Paid Users
  21. 21. When Should Sales Contact a PQL? 1. Hand Raise 2. Usage Limit Reached 3. Feature LImit Encountered
  22. 22. ThriveHive is Investing Heavily in Product First Go To Market ● Acquired Closely (Perch App) ● Launched ThriveHive Grader with Conversational Interface
  23. 23. Thank You adam@thrivehive.com

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