The Revenue Marketing Report
What B2B Can Learn from B2C
Thu May 11 2023Description
B2B SaaS companies are shifting their strategy to multi-year contracts and upselling into existing customer base. Focusing on ideal customers and being data-driven helps companies avoid drowning in opportunities and prioritize value impact. Maximizing customer value and personal growth are essential for success.
Insights
Companies are switching to multi-year contracts
B2B SaaS companies are adopting multi-year contracts and upselling to reduce customer acquisition costs.
Proper justification is needed for these tactics
Offering discounts or freezing prices can make multi-year contracts more appealing to customers.
Early stage companies mitigate risk with multi-year contracts
Startups are purchasing multi-year contracts in bulk to protect themselves in uncertain times.
Smaller companies are becoming better at negotiating
Outsourcing procurement and improving negotiation skills leads to less hesitation on upfront or multi-year contracts.
Leaders should use criteria to determine ideal target
Criteria like costs to serve, time to close, average deal size, churn rate, and net promoter score help identify the ideal customer.
Identifying patterns in customer behavior is crucial
Analyzing customer behavior and satisfaction helps determine the company's direction.
Blending qualitative and quantitative data is important
Using both types of data ensures accurate analysis and decision-making.
Metrics play a crucial role in decision-making
Time to sale, cost of acquisition, retention rate, cost of service, and time to value are important metrics for companies.
Buying signals and events should be considered
Targeting prospects based on their buying signals and events can improve sales effectiveness.
Customer experience is key in competitive markets
When product features, price, and marketing promises are similar, customer experience becomes a differentiating factor.
Chapters
- B2B SaaS companies shifting strategy
- Focusing on ideal customers and being data-driven
- Maximizing customer value and personal growth
B2B SaaS companies shifting strategy
00:01 - 07:50
- Companies are switching to multi-year contracts and upselling into existing customer base to cut costs on initial customer acquisition.
- Proper justification is needed to make these tactics appealing to customers, such as freezing prices or offering discounts in exchange for upfront payment.
- Early stage companies are bulk purchasing multi-year contracts to mitigate risk in uncertain times.
- Smaller companies are outsourcing procurement and becoming better at negotiating, leading to less hesitation on upfront or multi-year contracts.
Focusing on ideal customers and being data-driven
07:24 - 15:44
- Leaders should use criteria like costs to serve, time to close, average deal size, churn rate, and net promoter score to determine their ideal target.
- Identifying patterns in customer behavior and satisfaction can help determine the company's direction.
- Blending qualitative and quantitative data is important for accurate analysis.
- Metrics such as time to sale, cost of acquisition, retention rate, cost of service, and time to value are crucial for decision-making.
- Buying signals and events should be considered when targeting prospects.
- Customer experience becomes more important when there is parity in product features, price, and marketing promises.
Maximizing customer value and personal growth
15:20 - 21:52
- Understanding that as a product provider, you are just a part of the whole solution and should help customers make progress in other ways.
- Time to value and overall satisfaction are critical in retaining customers.
- Some tools do many things okay, while others excel at specific tasks; CFOs may prefer tools that do many things for negotiation purposes.
- In challenging economic environments, it's important to focus on personal growth and education as an entrepreneur or business leader.
- Investing in oneself, being curious, and using empowering language can change brain chemistry and lead to success.
- Having a flexible mindset that views challenges as opportunities for growth is key.