An article by Brian Feinstein from BVP on Vertical SaaS pegged the market size at 150B. This is what I wrote about what is fuelling the growth –
Content marketing is the lifeline for any SaaS company. And blogs are a critical component in the lineup. Somehow we are more focused on the ‘Content’ part of ‘Content Marketing’. The ‘Marketing’ part languishes or gets sporadic attention. I have spent a lot of time in the past year writing in LinkedIn but even after paying for various tools I am not focused on the ‘marketing’ part. Every time I attend a meet of companies like SEMRush I come back wanting to implement ideas but they falter. Learning No.1. Nothing that needs real attention can move forward without a dedicated person who is doing that on an everyday basis.
How do Customers define satisfaction? Which channels do they turn for support? When do they want self-service? Answers to these and other questions were attempted by Groove in their recently published report ”80 Customer Service Statistics” with data sourced from multiple companies and arranged under 8 segments like Customer Satisfaction, Customer Support Channels, Customer Self Service etc.
This is a complex and often opaque process. There has been a lot written about and discussed. The rule of thumb is that a SaaS that shows definite growth trajectory can expect a 10X revenue x rate of growth x net renewal rate, as post money value, give and take.
Undoubtedly one of the most critical slides in your pitch deck (not your pitch) is your TAM slide and there are confusions around how to estimate one. For starters it needs hard work unless you want to go for the Top Down model relying on industry reports and external estimates and simply aim for 1-2% of market share.
Did you ever wonder why TRUST by the consumers contribute 25% of Apple’s Market Cap – which is like $205B? Tomasz Tunguz wrote on what trust means in business – “Brands are so valuable because they are the encapsulation of years long efforts to engender trust. …. Trust accelerates sales cycles, creates long term defensibility, and increases the value of a business overall. It’s the core purpose of marketing.”
David Skok in this lecture at the Web Summit, summarizes the key metrics that you need to track to ensure success and growth of your Saas business. This is hands down one of the simplest presentations you will find on the topic.
Tomasz Tunguz wrote this piece last year and it is a great place to start 2020 for all of us working on a SAAS product. In multiple forums and columns one key learning has been developing the ability to ask the right questions at various times in your business lifecycle. If the answers surprise you – which most likely it will – you have your work cut out. Consider these 8 questions (of 13) focused on the customer any PMM should be asking –