Understanding Your Business Buyer: Key to SaaS Success
As the co-founder and CEO of Clockwise, Matt Martin shares his insights on monetization, product market fit, and the importance of understanding your buyers' pain points to drive successful business growth.
- 1. When developing a product, understand the target customer, including their pain points, work habits, conferences they attend, and what gets them promoted or fired.
- 2. Consider whether the product is for consumers or businesses, as this will impact monetization strategies.
- 3. In a business environment, individual users are typically cheap and not good at valuing their time, so a large volume of users is needed to convert a small subset to a low price.
- 4. If selling to a specific audience in a business context, ensure the purchase will be made on a corporate card, as this defines many monetization parameters.
- 5. Don't reinvent the wheel when it comes to pricing and packaging - look at what competitors are doing and use that as a starting point.
- 6. In SaaS software spaces like product line growth, you often see free, personal, team, and enterprise plans, which represent a progression of how the product grows and the buyer evolves.
- 7. Free users can support the journey to team and enterprise plans by providing valuable information about power users and potential revenue.
- 8. Putting up a paywall and asking for payment provides valuable signals about customer interest and price points.
- 9. Maintain a close connection with buyers, as they have a concentration of power in many business-to-business relationships.
- 10. Understanding the buyer's problems and needs can help build a better product and stronger relationships that pay dividends over time.
- 11. For SaaS companies, high growth features should be accessible and usually free to drive customer acquisition.
- 12. Be mindful of personal value attached to company success, as it can create emotional rollercoasters - manage personal psychology for a more sustainable journey.
- 13. Growth must have purpose, tied to business performance, and headcount growth should not be the sole barometer of success.
- 14. Sustainable and profitable growth requires diligence and scrutiny, questioning how and why you need to grow, as well as what's required to hit the next milestone.
Source: EO via YouTube
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