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✍️ Latest from our blog:
Are you looking for new ways to increase the scope and reach of your business? Improving and diversifying how you interact with your audience across social media channels is essential for online marketing strategies.
Growth Tribe shared insights on the power of short-form videos. We enjoyed their webinar and summarised the key learnings.
Shifting from marketing-led growth to product-led growth is a great idea: it can simultaneously increase your revenue and cut costs. However, before starting the transition, it's essential to do the prep work and set the right metrics, theories, and analytics.
Sounds complicated? It's not. Check the case of Nextdoor — a social media app for neighbors and local businesses to stay in touch. Here are the four steps they took to attract users with the power of the product.
📺 What to watch:
Here are our top pick videos on Product Analytics & Growth Metrics
📚 What to read:
1/ Insights from the new SaaS benchmarks report by OpenView and Kyle Poyar:
1) The average EV / Revenue multiple for a public SaaS company is now mind-boggling 18.4x
But it varies dramatically depending on the growth rates.
The faster the growth, the higher the multiple.
2) IPO is just the beginning of the growth story, not the end
One of the reasons is that the total addressable market is growing.
Salesforce claimed a $7.1B market when going public. Today they are $22B in revenue (and have a 19.8% market share)
3) Product-Led Growth is still hot.
Nearly every company to go public in 2021 is now mentioning PLG in their filings.
Product-led companies have a higher ratio of product & engineering spend to sales & marketing. They treat a large portion of the product as a cost of acquisition.
4) Another cool thing — usage-based pricing.
45% of SaaS companies now have some form of usage-based pricing, up from 34% in 2020.
Usage-based companies are outgrowing their peers because they're better at landing new customers and then organically expanding customers over time.
5) Of the companies that went public in 2020 and 2021YTD, nearly all have >100% Net Dollar Retention.
(meaning that they earn more from existing clients year over year).
6) Hiring is now among the top founders' challenges.
In a tight tech talent market, companies can differentiate on culture, specifically a diverse culture.
Also, PLG again can help. Instead of adding bodies, find ways to get more leverage out of your product.
Get more insights here.
Brian Rothenberg's career has spanned from scrappy zero to triumphant IPO. He scaled Eventbrite's $5B growth engine and watched the company surge to a $3B valuation on the NYSE.
According to him, the oft-overlooked key to sustaining startup growth is to evolve your strategy over time – He identifies three phases where growth strategies change as your business expands:
- Finding Product/Market Fit and Gaining Traction;
- Making Larger Leaps and Bigger Bets.
It must fit where you are in the moment based on your resources, customer insights, and internal data. Continue reading
It takes up to 12 months to hire a candidate to become VP of Product or Chief Marketing Officer. Sometimes you think you hired the right candidate, only to realize you were wrong. That ends up hurting both — the company and the individual.
There are three identifiable breaking points in the growth leadership hiring process:
- Lack of Leader/Model fit;
- A disconnect between recruiting costs and candidate impact;
- Failing Up, Failing Down, or Failing Laterally after being recruited.
⚡️ News that matters:
Cymbio is a B2B drop-ship automation platform whose goal is to connect brands with retailers and marketplaces.
They raised $20M in a Series B round — seven months after raising $7M in their Series A. Ex-Amazon executive Chris North and former Shopify CMO Chris Weiser are amongst the backers.
This funding will allow footprint expansion across Europe and the US.
It encapsulates their recent success in building a leading comprehensive customer engagement platform that helps companies make better and more sustainable customer relationships.
UserTesting has gone public, too, on the New York Stock Exchange. It marks a new chapter for the company whose SaaS empowers startups and large multinationals to deliver exceptional customer experiences through human insight.
Sleek's product is an operating system to integrate all back-end office functions such as tax, payroll, etc., in one place — so small businesses can focus exclusively on growth.
Sleek announced a $14 million Series A allowing for expansion in Europe and Australia. The startup doubled its client portfolio size during the pandemic and posted $700 million of revenue in 2020.
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