The success of a SaaS business is contingent on three value cycles: Product, Sales, and Marketing. Product teams need to build great products that customers love, Marketing teams need to identify and source those customers, and Sales teams need to sell and drive the product to market.
For many businesses that have a B2B SaaS offering, the people responsible for marketing and selling the product didn’t know what the customer actually wants out of the product.
In the absence of cross team collaboration, transparency and focus, customer acquisition is purely a numbers game.
Get as many leads as possible and hope that 10% will convert. The sales forecasts are based on that conversion rate and the average deal size. The sales team uses the same cookie-cutter formula for all leads expecting that 1 out of 10 MQLs will convert.
98% of MQLs never result in closed business.
This problem is not unique and it is more and more common as companies grow and the gap between product, marketing, and sales becomes larger. The result is a disconnect that results in targeting the wrong customers, poor product to market fit, decrease in sales velocity, and a decline in revenue growth.
The solution: get your sales, product, and marketing teams speaking the same language and tracking the same success metrics.
To do that you have to go back to the core driver of your business, the product. Open your product to your prospects. Let them test drive it. Collect the feedback and then market and sell to the users that are genuinely interested in your product! Those users are more likely to convert (25-30% conversion rate – source), more likely to become promoters, and less likely to churn. Why? Because they are already fans of the product before they even purchased it!
More important than the users that ended up converting and buying the product are the users that tried it but did not convert.
Having insight into how those users used your product is extremely beneficial. Understanding which features they liked and the difference between their product path and the path of a converted user will give the insights to your product and marketing teams to build better products to attract those users in the future.
Out of a vision to align product, marketing and sales teams to better understand the needs of the customer, we’ve built Productlift.
Productlift brings product usage data to the top of the funnel where marketing teams leverage this data to generate demand flywheels, sales teams leverage this data to better convert prospects and the product team uses the same insights to build better products.