SaaS, B2B and Product Management: Unique Challenges and Experiences
Growing Your SaaS Product Business
16
Decisions You Must Make to Grow Your SaaS Product Business Originally Presented at Dreamforce ‘13 Founders Forum as “Cloud Business Fundamentals: 5 Rules to Live By” John Gibbon @johngibbon johngibbon.com
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Make decisions on how to grow your SaaS product business including how to: -Measure growth and define success -Identify common roadblocks to company growth -Determine where to focus your efforts -Refine company & product portfolio strategy and trade-offs -Assess different potential opportunities
Transcript of Growing Your SaaS Product Business
Decisions You Must Make to Grow Your SaaS Product Business
Originally Presented at Dreamforce ‘13 Founders Forum as “Cloud Business Fundamentals: 5 Rules to Live By”
John Gibbon @johngibbon
johngibbon.com
@johngibbon
What growth? SaaS metrics
Product capabilities
Cash
Customer adoption
Revenue growth (recurring)
Average revenue per customer
Churn / net promoter score
Customer acquisition cost ratio
Market share / recognition
Profitability
@johngibbon
Your roadblocks to disruptive growth?
Define
Design / develop
Partner
Market
Sell
Implement / support How have they changed?
(photo from Arnoldit.com)
@johngibbon
Iterative growth: obey the funnel
Define
Design / develop
Partner
Market
Sell
Implement / support
@johngibbon
Current Products
New Products
Current Markets
New Markets
Growth strategy: Ansoff matrix
Market Penetration
Product Development
Market Development
@johngibbon
Where grow?
Products
Services Geographies
Industries / verticals
Similar customers Bigger / small customers market
penetration
market development
product development
@johngibbon
Is there an opportunity?
Customer pain? power?
Market big? growing? changing?
Total market > total addressable market > your share
@johngibbon
Assessing growth strategy
Where should you go?
Why will you be successful there?
How do we get there?
Spicy
@johngibbon
And what opportunity (product) success metric?
Revenue
Market share
Competitive differentiation
New users
Increased usage
Increased NPS
@johngibbon
Boston Consulting Group Growth Share Matrix
50%-
10%-
0%
Mar
ket G
row
th R
ate
10x 2x 1x Relative Market Share
0.5x 0.2x 0.1x
Dogs
? Question marks
? Cash cows
Stars
Accelerate a Few Divest Most
Liquidate
Harvest
Invest
@johngibbon
What trade-off decisions should you be making?
Question marks vs. stars
Stars vs. cash cows
New market vs. existing market
Short term vs. long term revenue
Revenue vs. usage
Client A vs. client B
Thank You!
@johngibbon
@johngibbon
“SaaS Business Fundamentals” – Handout 1) Your Top Two Company ____________ (Growth Metrics)
1._________________________ 2._________________________
What needs to change? ____________________ What are next steps to create this change?____________________
2) Your Top Two Obstacles to ___________ (Disruptive Growth) 1._________________________ 2._________________________
What needs to change? ____________________ What are next steps to create this change?____________________
3) Your Best Two ____________ (Directions to Grow) 1._________________________ 2._________________________
What needs to change? ____________________ What are next steps to create this change?____________________
@johngibbon
“SaaS Business Fundamentals – Handout 4) (Pick One) Why This Opportunity & What _______________ ? (Success Metrics)
1._________________________ 2._________________________
What needs to change? ____________________ What are next steps to create this change?____________________
5) Where Are Products in BCG Matrix and What ________________ Should Be Making? (Trade-off Decisions) 1._________________________ 2._________________________
What needs to change? ____________________ What are next steps to create this change?____________________
