Product Led Growth Strategy: Metrics You Should Track & Optimize

TK Kader
28 Jan 202415:28

Summary

TLDRこのビデオスクリプトでは、SaaSビジネスをスケールさせるためのプロダクトリード型成長の3つの原則について解説しています。まず、トラフィックと獲得を区別し、製品を発見する人々を増やすためにマーケティングの重要性を強調します。次に、獲得と収益の間にはアクティベーションというステップがあり、製品内で有意義なアクションを起こすことで顧客の活発化を促します。最後に、定期的な収益を得るためにリテンションと更新率を重視し、製品を通じて価値を得る顧客を維持することがポイントです。プロダクトリード型ビジネスは、初期段階でのコスト構造を変えながらも、後段で販売力を使って収益を拡大するという戦略も紹介されています。

Takeaways

  • 🚀 プロダクトリードはSaaSビジネスを拡大する「聖杯」であり、高価なセールスマンなしに顧客を獲得し収益化することができる。
  • 📈 初期段階のプロダクトリード成長には、適切なメトリックスを追跡し最適化することが重要である。
  • 🛍️ プロダクトリードモデルではマーケティングが依然として必要で、顧客を獲得し製品を知ってもらうためのトラフィックを確保する手段となる。
  • 👥 プロダクトリードにおいても販売担当者が必要で、彼らは後段で取引を拡大し、顧客のリニューアルやアップセルを促進する。
  • 📊 成長戦略の3原則を理解し、それに基づいてプロダクトリード体験を構築し、実際の収益に変換しSaaSビジネスを拡大する。
  • 🔑 トラフィックと獲得を区別し、それぞれを個別に測定することで、プロセスを最適化しスケールアップできる。
  • 🎯 アクティベーションはリーンと収益化の間の重要なステップで、顧客が製品内で意味のあるアクションを起こすことを促すことが重要。
  • 💰 リーニューアルと拡張が重要なリカーシング収益のため、単なる1回限りの支払いではなく、継続的な使用と価値を得られることが求められる。
  • 📈 毎週のトラフィック、獲得、アクティベーション、収益の割合を追跡し、それを改善するための実験を繰り返すことで成長を促す。
  • 🛠️ プロダクトリードSaaSビジネスを拡大する際には、マーケティングと販売の両面を持つ総合的な市場投入戦略が必要です。
  • 🔗 プロダクトリード体験を最適化し、顧客が製品を発見し体験し、価値を得られるようにするためのマーケティングと販売のバランスが鍵となる。

Q & A

  • SaaSビジネスにおいて製品主導型のアプローチが重要な理由は何ですか?

    -製品主導型のアプローチは、高額な販売スタッフなしにSaaSビジネスを拡大し、新規顧客を獲得し、収益に変換することができるため、現在SaaSにおける「聖杯」とされています。

  • 製品主導型の成長においてはどのようなメトリックスを追跡すべきですか?

    -製品主導型の成長では、トラフィック、獲得、アクティベーション、収益というメトリックスを追跡すべきです。これらのメトリックスを最適化することで、SaaSビジネスの成長を拡大できます。

  • トラフィックと獲得の違いは何ですか?

    -トラフィックは製品を発見する実際の人々、つまり製品に対する訪問者を指します。一方、獲得は、製品体験を開始したり、製品に関連するマニフェストをダウンロードしたりする意思決定を示した人々を指します。

  • 製品主導型のビジネスモデルではマーケティングは必要ないという誤解がありますが、その本当はどのようなものですか?

    -製品主導型のビジネスモデルでもマーケティングが必要です。製品をリードさせて成長させるためには、まず製品を発見する人々が必要です。マーケティングは製品に対する認識を高めるための重要な要素です。

  • アクティベーションとは何を意味していますか?

    -アクティベーションは、製品内で意味のある行動をとる人々を意味します。製品内でahaモーメントに達するまで、顧客を有効に活用し、製品の価値を理解させることが重要です。

  • 製品体験を最適化するためにはどのようなアプローチをとるべきですか?

    -製品体験を最適化するためには、新規ユーザーが製品を使い始めた最初の数秒から数十秒を通じて、彼らが実際にアクティベーションに達するように製品体験を設計する必要があります。

  • 収益に達する前に重要なポイントはどこですか?

    -収益に達する前に重要なポイントはアクティベーションです。製品内で意味のある行動をとる顧客の割合を高めることで、収益への変換率を上げることができます。

  • SaaSビジネスにおけるリピート収益の重要性とは何ですか?

    -SaaSビジネスにおいては、単なる一ヶ月分の支払いだけでなく、顧客が製品を継続して使用し、その価値を感じ続けることがリピート収益にとって重要です。

  • 製品主導型のSaaSビジネスを拡大するためにはどのような原則を遵守すべきですか?

    -製品主導型のSaaSビジネスを拡大するためには、トラフィックと獲得を別々に測定し、アクティベーションを促進し、収益に至るプロセスを最適化する原則を遵守すべきです。

  • 製品主導型のビジネスで販売スタッフを後段に配置することの利点は何ですか?

    -製品主導型のビジネスで販売スタッフを後段に配置することにより、最も高ポテンシャルの顧客に対してサービスを拡大し、組織全体への使用拡大や更新を確保することができます。

  • SaaSビジネスの成長を促進するための5ポイントの成長戦略ガイドとは何ですか?

    -5ポイントの成長戦略ガイドは、SaaSビジネスの成長を促進するための具体的な方法を提供するガイドであり、トラフィックの獲得、顧客体験の最適化、マーケティングの強化などを含む重要なポイントを網羅しています。

Outlines

00:00

🚀 プロダクトリード型SaaSビジネスの拡大戦略

プロダクトリード型SaaSビジネスは、高額なセールスマンなしでビジネスを拡大し、新規顧客を獲得し、収益に変換することができるという魅力があります。しかし、その過程でどこが失敗しているかわからない場合もあります。この段落では、プロダクトリード成長のための適切なメトリックスを追跡し、それらを最適化する方法について説明します。また、プロダクトリードである場合でもマーケティングやセールスマンの必要性についても議論します。

05:00

📈 トラフィックとアクイジションの重要性

プロダクトリードのプロセスを最適化するためには、トラフィックとアクイジションという2つの重要なメトリックスを追跡する必要があります。トラフィックは製品を発見する人の数を意味し、アクイジションは製品体験を始めたり、製品に登録したりする人の数です。プロダクトリードの場合でもマーケティングが必要な理由と、トラフィックとアクイジションの違いについて説明しています。

10:03

🔑 アクティベーション:リべニューと収益への道

アクティベーションは、顧客が製品内で意味のある行動を起こすまでのプロセスです。製品体験を開始した顧客の割合と、実際に製品を利用してアハ体験に達する顧客の割合を見ることが重要です。アクティベーション率が高ければ、収益への変換率も高くなります。製品を最良のセールスマンのように顧客に製品の価値を伝える必要があると強調しています。

15:03

💰 収益とリニューアル:定着率と拡大

SaaSビジネスにおいては、単なる収益だけでなくリカーシング収益が重要です。ウェブサイトに訪れた人の割合、それを試用に変えた人の割合、そして実際にアクティベーションし、収益に変えた人の割合を追跡することが求められます。定着率を高めるためには、顧客が製品を継続的に使用し、その価値を見出してからのリニューアルが重要です。

🛠️ 改善のためのメトリックスと戦略

最適なプロダクトリード型SaaSビジネスのためには、トラフィック、アクイジション、アクティベーション、収益の各メトリックスを追跡し、それらを定期的に改善する必要があります。改善のための具体的な戦略として、マーケティング、セールス、顧客成功管理の役割を紹介し、製品リードで初期顧客を獲得し、その後にセールスチームを活用して収益を拡大する戦略を説明しています。

👋 最後に

この動画ではプロダクトリード型SaaSビジネスを拡大するための3つの原則について説明しました。最後に、視聴者がこのビデオから価値を得たらいいねボタンを押してくだし、共有してくれたり、チャンネルを購読してベルアイコンを押して更新を通知を受け取るように呼びかけています。次に、5ポイントSaaS成長戦略ガイドへのリンクを提供し、さらに詳細な戦略を提供しています。

Mindmap

Keywords

💡SaaS

SaaSとは、Software as a Serviceの略で、インターネット経由で提供されるソフトウェアサービスを指します。このビデオでは、SaaSビジネスをスケールさせる方法が議論されており、特に製品主導型のアプローチが強調されています。

💡製品主導型(Product-Led)

製品主導型とは、製品そのものがビジネス成長を牽引するビジネスモデルを指します。ビデオでは、製品主導型のSaaSビジネスが顧客を獲得し、収益に変換するプロセスを最適化する上で重要な役割を果たしていると説明されています。

💡スケール

スケールとは、ビジネスの規模を拡大することを意味します。ビデオでは、製品主導型のアプローチを通じてSaaSビジネスをスケールさせる方法が探求されており、そのプロセスを最適化することが重要視されています。

💡マーケティング

マーケティングは、製品やサービスを市場に紹介し、顧客に知ってもらうプロセスを指します。ビデオでは、製品主導型のビジネスでもマーケティングが不可欠であり、製品を顧客に届けるためにはトラフィックを獲得する必要があると強調されています。

💡収益(Revenue)

収益とは、ビジネスが獲得する実際の利益を指します。ビデオでは、製品主導型の成長においては収益に変換されるまでのプロセスが重要であり、それを最適化することがビジネスの成長につながると示唆されています。

💡トラフィック

トラフィックとは、ウェブサイトやオンラインサービスにアクセスする訪問者数のことを指します。ビデオでは、製品を顧客に届けるためにはまずトラフィックを獲得し、製品を発見する機会を増やす必要があると語られています。

💡獲得(Acquisition)

獲得とは、顧客を獲得することを意味します。ビデオでは、トラフィックと獲得を区別し、製品を知り製品体験を始める顧客を獲得することが製品主導型成長の鍵と位置づけられています。

💡アクティベーション

アクティベーションとは、顧客が製品内で意味のある行動を起こすことを指します。ビデオでは、製品体験を通じて顧客をアクティベーションさせ、製品の価値を実感させることが収益への変換につながると説明されています。

💡リテンション(Retention)

リテンションとは、既存顧客を維持することを意味します。ビデオでは、製品主導型のビジネスモデルにおいてはリテンションが重要で、顧客が継続的に製品を利用し、価値を認識することで定期的な収益が確保されると強調されています。

💡マーケット戦略(Go-to-Market Strategy)

マーケット戦略とは、製品やサービスを市場に投入し、顧客に届けるための計画を指します。ビデオでは、製品主導型のビジネスを成長させるためには効果的なマーケット戦略が必要であり、その戦略を通じて顧客の獲得とアクティベーションを促進することが議論されています。

Highlights

Being product-led is the holy grail in SaaS right now, allowing businesses to scale without expensive salespeople.

Product-led growth can be challenging in the early stages, especially when trying to understand where the conversion process is breaking down.

Three key principles are essential for building a successful product-led experience that converts to real revenues and scales a SaaS business.

Product-led growth requires marketing to drive traffic and acquisition, contrary to the misconception that marketing is not needed.

The distinction between traffic (people discovering the product) and acquisition (people starting a trial or showing interest) is crucial.

Activation, or meaningful action taken by users within the product, is a key metric that precedes revenue and is often overlooked.

Optimizing the product experience to encourage activation can lead to higher conversion rates and revenue.

Revenue is the end goal, but it's important to focus on recurring revenue and customer retention for a sustainable SaaS business.

Understanding and tracking the conversion percentages at each stage of the funnel is more important than industry benchmarks.

Weekly tracking and improvement of metrics such as traffic, acquisition, activation, and revenue are key to growth.

Product-led growth can coexist with sales-led strategies, with salespeople used to expand deals and ensure customer retention.

Engineering mindset can be applied to marketing, treating it as a problem of improving numbers and running experiments for optimization.

The most successful SaaS companies combine product-led growth with sales efforts to maximize revenue and customer lifetime value.

A proper go-to-market strategy is essential for driving growth and getting more people into the product experience.

The 5-Point SaaS Growth Strategy Guide offers actionable steps and strategies for SaaS business growth.

Sharing knowledge and strategies with fellow founders and the community can lead to collective growth and success.

Transcripts

play00:00

- Being product- led is the holy grail in SaaS right now.

play00:03

Think about it, being able to scale your SaaS business,

play00:06

get new customers,

play00:07

convert them to revenue without expensive salespeople.

play00:10

That sounds incredible!

play00:11

That sounds amazing!

play00:11

And if you are in that product-led journey

play00:13

in the early stages,

play00:14

you may get to a point

play00:15

where you're not quite sure where it's broken.

play00:18

People are coming in, they're trying,

play00:19

but not all of them are converting to revenue.

play00:21

So here's the big question.

play00:22

What metrics do you track

play00:24

for proper product-led growth experience?

play00:26

How do you optimize those metrics?

play00:28

If you're doing product-led, do you still need marketing?

play00:31

What about salespeople?

play00:32

Do you put salespeople on the backend?

play00:33

In this episode, I'm gonna walk you through

play00:36

the three principles that you absolutely need to know

play00:38

on how to build a product-led experience

play00:42

that converts to real revenues

play00:44

and scales your SaaS business.

play00:46

Intro!

play00:47

(dramatic music)

play00:54

What's up everybody?

play00:55

Welcome to "Unstoppable", I'm TK

play00:57

and on this channel I help SaaS founders like you

play00:59

grow your SaaS business faster with an unstoppable strategy.

play01:04

Now if you're new to this channel, welcome,

play01:05

I drop an episode every single Sunday

play01:07

with actionable strategies and tactics from the trenches

play01:10

on how to grow your SaaS business faster.

play01:12

So be sure to hit that subscribe button

play01:15

and that bell icon

play01:16

that you'll get notified every single time I drop an episode

play01:18

with the TK Energy.

play01:20

If you're already part of this community,

play01:22

if part of my SaaS go-to-market coaching programs,

play01:24

my people, welcome back,

play01:26

it's really awesome to see you over here.

play01:27

So I remember when I first started to get conversions

play01:30

for Tau Depth,

play01:30

ow up was my last SaaS business,

play01:32

and it started off as product-led.

play01:33

Later on we added a whole sales team around it

play01:36

and we raised money from Andreessen Horowitz

play01:38

and scaled that growth.

play01:39

But in the early days, I rigged it,

play01:41

so every single time

play01:42

someone went through the trial experience

play01:43

and then swiped their credit card at the end of it,

play01:45

I would get a text message

play01:47

which would make a cash register noise saying,

play01:49

"ChaChing, someone just signed off for the paid plan."

play01:52

It was an incredible feeling.

play01:53

And to this day, for every SaaS business that I operate,

play01:56

that still is true,

play01:57

I get a little text message with the cash register noise

play02:00

saying that we have a new customer

play02:01

and that a payment is getting processed.

play02:03

It's the best feeling ever.

play02:05

However, here's the thing

play02:06

between someone discovering your product

play02:09

all the way to converting to revenue,

play02:10

a whole bunch of things happen

play02:12

and it can often be a black box.

play02:14

And if you don't break it down into specific pieces,

play02:16

it can be very easy to get lost in the process

play02:19

and not really know how you can scale

play02:21

your product-led experience.

play02:23

So in this episode,

play02:24

I'm gonna walk you through the three principles

play02:26

you absolutely need to know

play02:27

to properly track the right metrics

play02:29

and how to optimize them

play02:31

so you can scale the growth

play02:32

of your product-led SaaS business.

play02:34

So you excited to dig in,

play02:35

smash a like button for the YouTube algorithm.

play02:37

It just loves it when you do that.

play02:39

And let's dig into principle number zero,

play02:40

which is the framework.

play02:41

Principle number zero, the framework,

play02:43

is I always think of the product-led experience

play02:45

as a core funnel.

play02:46

I think of everything as a funnel.

play02:48

Some marketers will tell you that funnels are dead.

play02:50

They're just trying to sell you something.

play02:51

Funnels have existed since the beginning of time.

play02:53

It's a process that you take your best customers through

play02:55

so they convert to revenue

play02:57

and they get value for your product.

play02:58

And thinking in terms of funnels is the best way

play03:00

to actually optimize something

play03:02

you are delivering to customers.

play03:04

So I always think of it as a funnel

play03:05

and three principles are broken down

play03:07

in the key inflection points in the funnel

play03:09

for a product-led machine.

play03:11

Principle number one in the funnel is these two theses

play03:15

and sometimes people conflate these two.

play03:16

The first piece is traffic,

play03:18

and I'll explain the distinction between the two.

play03:21

The second piece is acquisition.

play03:28

So you got traffic and you got acquisition.

play03:30

What's the difference?

play03:31

When someone discovers your product,

play03:33

maybe they end up on the website

play03:35

or they end up in this product-led experience

play03:37

where you don't have to sign up for anything,

play03:39

you're just kind of there.

play03:40

That's traffic, that's actual people coming in

play03:42

and discovering your product.

play03:44

One of the biggest misconceptions that people have

play03:46

and founders have

play03:47

is that if you're product-led,

play03:48

you don't need any marketing and that's not true.

play03:50

At the end of the day. In order for your product

play03:52

to lead the growth for your company,

play03:54

you need people discovering the product in the first place.

play03:57

It's the same thing as a salesperson.

play03:58

In order for the salesperson to close deals,

play04:00

they need demos.

play04:01

In order for the product to close deals,

play04:02

you need traffic,

play04:04

you need eyeballs actually discovering your product.

play04:07

So that's traffic.

play04:08

This could be website visits,

play04:09

this could be landing on the signup experience

play04:11

for your product.

play04:12

It could be any one of those things.

play04:13

It's just essentially awareness

play04:15

that you're building in the market.

play04:16

Acquisition is subtly different.

play04:18

Acquisition is where people are saying,

play04:19

"Okay, I want to start a trial

play04:21

or I want to start using this product,

play04:24

or I want to start to explore

play04:25

exactly what's going on in this process,

play04:27

or maybe I want to download this manifesto

play04:29

which tells me more about the product

play04:31

and then I can get into the product from there.

play04:33

So a lot of times people conflate these two

play04:35

and just say, "Oh, we have signups."

play04:37

And that's not enough

play04:38

to really help you understand what's moving and what's not

play04:41

in your product-led process.

play04:42

You wanna first think in terms of traffic.

play04:44

How many people are discovering

play04:45

what you're selling,

play04:46

and then you wanna think about acquisition.

play04:47

How many people are looking at that message,

play04:49

looking at that marketing message essentially

play04:51

and saying, "Oh yeah, I have this problem,

play04:52

I wanna solve this."

play04:54

And they click the button

play04:55

to actually start the product-led experience

play04:57

and that's acquisition.

play04:58

There are some nuances

play05:00

as you work through your go-to-market strategy.

play05:02

You might say traffic

play05:03

is how many people end up on your website

play05:05

and acquisition is how many people

play05:06

actually start the trial button.

play05:08

Other people might have a different type of funnel.

play05:10

They say, "Look, we don't care about the website,

play05:11

we wanna throw 'em right into the product.

play05:13

So maybe they run an ad that leads to a manifesto

play05:15

that gets 'em into the product.

play05:16

And so in that kind of scenario,

play05:18

you have traffic that's essentially the people

play05:20

that are landing on the manifesto landing page.

play05:22

Acquisitions they become a lead

play05:24

and then they get into the product from there

play05:25

and that's the subsequent steps.

play05:26

This is a little bit nuanced.

play05:28

It depends on how you are actually marketing your product

play05:32

to get them into the product-led experience.

play05:33

But then you can actually start to break it down

play05:35

and say, "Cool, where are people getting stuck?"

play05:37

So once you have principle number one,

play05:39

traffic and acquisition,

play05:40

then comes principle number two

play05:42

and a lot of people think it's revenue and it's not.

play05:44

Now spoiler number three is revenue.

play05:46

But if you watch till the end of this video,

play05:48

I'll explain exactly how to think about revenue, retention

play05:50

and what to watch out for at this stage.

play05:52

But right now between acquisition and revenue

play05:55

is where most people just think of it as a black box,

play05:57

but we have to break it down.

play05:58

The biggest thing you wanna think about at this point

play06:00

is what we call activation.

play06:05

So let's just say you have a product-led SaaS business

play06:08

and people end up on your website

play06:11

from the website, they say start free trial.

play06:13

And from the start free trial they get into your product

play06:15

and then they have a seven day trial.

play06:17

Now a lot of times

play06:18

people will just measure the percentage of people

play06:19

that signed up for the trial

play06:20

and what percentage of them converted to revenue.

play06:23

That is where a lot of founders and a lot of teams go wrong.

play06:26

You wanna think about is activation first.

play06:28

You wanna look at how many people

play06:30

took meaningful action inside of the product.

play06:33

So in the tout app days you would sign up for the product,

play06:35

pretty easy to do that,

play06:36

but we only counted activation when they sent a test email

play06:40

used a template

play06:42

and also opened the live feed

play06:43

to track the emails that were sent.

play06:45

Those three activities counted as activation.

play06:48

And the reason this was super important is we knew

play06:51

that unless as soon as they start the trial,

play06:53

if we don't get them activated in the product

play06:56

and they don't get to some sort of an aha moment,

play06:58

we don't stand a chance at getting them to revenue,

play07:01

which is why we architected the entire product experience,

play07:04

those first five seconds, 10 seconds, 30 seconds

play07:07

of them starting a trial to optimize it

play07:09

so that they actually activate.

play07:11

And time after time

play07:12

we looked at what percentage of people were signing up

play07:15

and what percentage were activating

play07:17

and made product improvements

play07:19

to improve the activation rate.

play07:21

The higher the activation rate,

play07:22

the more likely that they'll convert to revenue.

play07:25

A lot of folks skip this part.

play07:28

They don't instrument this the right way,

play07:29

they don't track it in the product,

play07:30

they don't think about what is our new user experience.

play07:33

One of the biggest things I think about

play07:34

is think of your product

play07:36

as the best salesperson you could ever hire.

play07:39

The best salesperson you could ever hire

play07:41

would give the customer a true tour of the product,

play07:44

help them understand the benefits of the product,

play07:46

help uncover their problems, guide them through the process.

play07:49

Your product needs to be able to do that.

play07:51

And the way you measure how good it is at doing that

play07:54

is this activation flow.

play07:56

The third one is revenue, spoiler,

play07:58

but there's some nuances to this

play08:00

and there's some nuances on

play08:01

how do you think about this overall funnel

play08:03

all the way to revenue

play08:04

and what should the benchmarks be.

play08:06

So I'm gonna cover that.

play08:07

But before I go to principle number three,

play08:08

let me just pause here for a second.

play08:10

Are you starting to see the power in this?

play08:12

Are you starting to see the power

play08:13

where from a product-led experience,

play08:15

you still need marketing, that's traffic.

play08:17

You still need to instrument

play08:18

different inflection points in that experience.

play08:20

And when you break it down into these pieces

play08:22

makes it so much more actionable for you

play08:24

to say, "Okay, cool,

play08:25

what part of our funnel do we wanna improve?

play08:27

Is it the part where we're getting enough people

play08:29

to discover our product?

play08:30

Is it getting enough people where they actually say,

play08:31

"Yeah, I have this problem,

play08:33

this message resonates with me, I wanna start a trial.

play08:35

Or is it part where they start a trial

play08:36

but then they don't use the product

play08:38

or they don't get to that aha moment?

play08:39

These are actionable pieces you can break down.

play08:41

So if you start to see the power of this simple framework,

play08:43

can I just get a yes in the comments below!

play08:47

And also smash that like button for the YouTube algorithm?

play08:49

It just loves it when you do that.

play08:51

Also, if you're in the stage

play08:52

where you're looking to drive growth for your SaaS business

play08:53

and you're looking for key ways to drive that growth,

play08:56

I encourage you to grab a completely free copy

play08:58

of my five point SaaS growth strategy guide.

play09:02

It's an incredible piece of content.

play09:03

It connects to all the other views I have in this channel.

play09:05

You don't have to go anywhere right now.

play09:06

I'll link to it below.

play09:07

I'll tell you more about it at the end of this episode.

play09:09

Let's go to principle number three

play09:10

where all of this comes together, all right?

play09:12

And also smash out like button for the YouTube algorithm.

play09:14

It just loves you when you do that.

play09:16

Okay, principle number three, spoiler alert is the revenue.

play09:20

This is where the revenue kicks in.

play09:21

Because we're operating SaaS businesses

play09:23

it's not just revenue, it's recurring revenue.

play09:27

So renewal is also important.

play09:30

It's not okay if they just pay for a month of product.

play09:32

You want them to keep using it

play09:33

and you want them to actually look at

play09:35

the fact that they're getting value from it.

play09:37

Otherwise it's just like they'll churn in three months

play09:38

but that doesn't make a compounding business.

play09:41

The biggest thing that you really wanna look at,

play09:43

is out of the people that showed up on the website,

play09:45

what percentage actually became a trial user or became lead?

play09:50

You would then wanna look at

play09:52

what percentage of people activated in the product

play09:54

and then you wanna look at what percentage

play09:56

of people converted to revenue,

play09:58

and of course what percentage of people

play10:00

converted the subsequent months to more revenue

play10:02

and maybe even expansion.

play10:04

This is where it gets fun.

play10:05

A lot of people will ask,

play10:06

"Oh, well TK, what should the benchmark be?"

play10:07

The biggest thing I can tell you is it doesn't matter.

play10:09

It doesn't matter what the benchmark is.

play10:12

What matters is you know what these percentages are.

play10:14

So start tracking them

play10:15

and every single week

play10:16

figure out how you can improve that percentage.

play10:18

That's all that matters.

play10:20

You just wanna fill the gap.

play10:21

If you can get your team's mindset to a point of,

play10:23

"All right, how do we increase the amount of traffic

play10:25

that gets into the trial experience?

play10:27

Or how do we make it where every single signup

play10:28

actually activates in the product?

play10:30

How do we revamp our new user experience?"

play10:31

Or in order to convert them to revenue,

play10:33

we need to make sure they keep coming back

play10:35

to use the product.

play10:36

We need to make sure we educate them

play10:37

on how to use the product.

play10:39

It's not just an event

play10:39

where they say, "Oh, here's the credit card.

play10:41

I love you guys. Take all my money."

play10:43

It has to get there.

play10:44

What are the series of steps?

play10:45

What are the email nurture sequences?

play10:46

What are the follow-up sequences?

play10:48

Maybe you get on an onboarding call,

play10:49

maybe you put a salesperson on the backend

play10:51

after the first month

play10:52

and see if you can expand the deal.

play10:53

Those are all little nuances on this third principle,

play10:55

but the biggest thing I can tell you in this

play10:57

is just establish the baseline every single week.

play11:01

So say week one, week two, week three.

play11:04

Basically say what is the percentage for each of these?

play11:08

And every single week,

play11:09

figure out one or two experiments that you can run

play11:12

to either increase traffic, increase acquisition,

play11:15

increase activation, or increase revenue.

play11:18

That's where it gets really fun.

play11:19

So I come from an engineering background,

play11:21

so I learned how to code first

play11:22

and then I learn sales and marketing, go-to-market.

play11:24

And I embraced founder led go to market

play11:25

because let's be honest, no one else is gonna do it.

play11:27

You gotta figure out how to do it in the early stages,

play11:28

and once you get good at it,

play11:29

you can recruit incredible people and get more capital

play11:31

and all those things come together.

play11:33

I got really hooked on this.

play11:34

The reason I fell in love with marketing

play11:36

is because my engineering mindset opened up

play11:39

when I looked at marketing as almost an engineering problem.

play11:41

I said, "Cool, what are the numbers

play11:42

and how do I improve it over time?

play11:43

And what are the experiments that I run

play11:44

and I make it better and better every single week.

play11:46

These percentages get better and better,

play11:48

and I have an incredible machine in the end.

play11:50

The coolest part about this

play11:51

is the most successful SaaS companies

play11:53

aren't pure play product-led companies.

play11:56

What they do is they use product-led

play11:57

to actually get initial customers,

play11:59

and then on the backend

play12:01

they take their salespeople and say,

play12:02

"Cool, here are our most high potential customers

play12:04

that are paying.

play12:05

Let's go figure out how we can upgrade them to bigger tiers,

play12:08

expand their usage to rest of the organization,

play12:10

or just make sure that they renew effectively."

play12:14

That's where the money really comes in with salespeople.

play12:16

So you can start with product-led,

play12:17

which completely changes your cost structure

play12:19

for growing your SaaS business.

play12:21

And then you can actually put salespeople and CSMs

play12:23

on the backend

play12:24

to expand that revenue and increase this percentage,

play12:26

which is super powerful.

play12:27

That's my framework

play12:28

for actually growing SaaS companies that are product-led.

play12:31

And you could be sales-led

play12:32

and maybe adding a product-led experience upfront

play12:34

can actually improve it.

play12:35

You also need to make sure you actually have marketing.

play12:37

Not marketing your product will never be discovered,

play12:40

no one will enter the experience.

play12:42

No one will get acquired or activated or convert to revenue.

play12:44

So you need both.

play12:46

So to recap, principle number one

play12:47

is to measure traffic and acquisition

play12:49

and look at them separately.

play12:51

Traffic is eyeballs discovering your product.

play12:53

Acquisition is where they're getting into the product

play12:55

or getting into your manifesto and then into your product.

play12:57

And then principle number two is thinking about activation

play12:59

Before revenue is considered,

play13:01

you need to get them to an aha moment.

play13:02

So what's the news or experience to get them to activation,

play13:04

to get them to use the product?

play13:06

If you don't know what it should be for every single signup,

play13:08

do an onboarding call and walk them through it

play13:10

and you'll know very quickly on where they're getting stuck.

play13:12

Once you get the activation improving,

play13:13

then you can set up the follow-up sequences,

play13:15

the nurture sequences, the training, whatever is needed

play13:18

to ensure daily use of the products

play13:19

so that they convert to revenue.

play13:21

And then you can figure out,

play13:22

do you put salespeople or CSMs on the other end

play13:24

to drive up renewals, expansions and upsells

play13:26

so they become a customer for life.

play13:28

That's a simple framework, but it's incredibly powerful

play13:30

and done it over and over.

play13:31

And now you know the exact metrics to look at

play13:34

how you still need marketing

play13:35

and how to optimize them over time

play13:37

so that you can scale your SaaS business.

play13:39

What you may not know is R TK.

play13:41

I can establish these metrics.

play13:43

I can convince myself to spend months figuring out

play13:45

how do I improve activation?

play13:47

I just need this one more feature, but how do I get traffic?

play13:49

How do I actually get people to discover my product?

play13:52

This is where you need a proper go-to-market strategy.

play13:54

So to learn more

play13:55

on how to build a proper go-to-market strategy

play13:56

and how to drive growth for your SaaS business,

play13:58

where more people are discovering your product,

play14:01

getting into this flow and getting into this funnel

play14:03

so you can get more data and improve it over time

play14:04

and get more customers,

play14:06

you need more traffic.

play14:06

To learn how to do that,

play14:08

you grab a completely free copy

play14:10

of my 5-Point SaaS Growth Strategy Guide.

play14:13

All you have to do

play14:13

is just go to getunstoppable.com/strategy

play14:16

and get access to the guide right away.

play14:18

It's an incredible guide, some of my best content.

play14:20

It directs you to other pieces of content

play14:22

that I have on this channel,

play14:23

teach you the principles

play14:24

and gives you five key ways you can drive growth

play14:26

for your SaaS business.

play14:27

So just go to get unstoppable.com/strategy

play14:30

and I also link to it below.

play14:31

If you got values from this video,

play14:32

please smash that like button for the YouTube algorithm.

play14:34

It just loves it when you do that.

play14:36

We put a lot of love in these videos.

play14:37

If you have a fellow founder,

play14:39

if you're part of a WhatsApp group, a Slack group,

play14:41

or a community of other founders

play14:42

that get value from this video,

play14:44

please share this with them.

play14:45

It'll just mean the world to us.

play14:46

I drop an episode like this every single Sunday

play14:48

with actionable strategies and tactics from the trenches

play14:51

on how to grow your SaaS business faster.

play14:53

So be sure to hit that subscribe button

play14:55

and that bell icon

play14:56

where you'll get notified every single time

play14:58

I drop an episode.

play14:58

And lastly, remember,

play15:00

everyone needs a strategy for their life and their business.

play15:03

When you are with us, yours is gonna be unstoppable.

play15:06

I'm TK and I'll see you next episode

play15:08

or inside the 5-Point SaaS Strategy Guide.

play15:10

Say that 10 times fast.

play15:12

Take care everybody.

play15:13

(upbeat music)

play15:20

This marker is slowly dying,

play15:22

so I'm gonna switch to a different one.

play15:24

Let's see.

play15:25

We will go with red right now, that's good.

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