In 2011, Ben Horowitz wrote his famous article titled Peacetime CEO/Wartime CEO, which outlined how company leaders should change their approach depending on whether they’re enjoying good times of market growth or dealing with tough times caused by external challenges.
Right now we’re operating in war time, so what should marketing teams do to get through and overcome a downturn? Marc McDougall is a CRO Specialist at Clarity First and in this episode he joins us to talk about the hidden opportunities for SaaS companies during an economic recession.
Marc has identified four opportunities for SaaS companies, which are:
- Positioning & Value: If COVID-19 pulled the rug out from under your business model, being able to pivot or adjust your offering accordingly is critical. If your product is still valid, this is a good time to reevaluate your value proposition to make sure the difference you make is crystal clear to your customers.
- Churn Reduction: Lots of customers are now signing up for free trials, but never continue on to paid plans. Remember to take the time to talk to your customers to find out why they signed up in the first place, and how you could deliver more value to them. In corona times, holding on to existing customers is more important than ever.
- Cost Reduction: It’s also worthwhile to scout for services and products that you could (momentarily) expend. With SaaS products it’s quite easy to know if something is worth paying for: Does it feel valuable to you? Since so many companies are eyeing their costs critically, make sure your customers won’t even consider dropping your product.
- Marketing Effectiveness: In smaller SaaS companies with several hundred subscribers, marketers often know quite well what channels bring in the most customers. For larger companies, understanding where people are dropping off in the sales cycle, and putting your bets on tactics that convert can increase the ROI of your marketing efforts.
Got anything to add to Marc’s list? Let’s continue the discussion on Twitter where you can reach us at @SaaSGrowthHub. If nothing else, Marc’s jolly accent is bound to cheer you up.
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Links
Don't Make Me Think >> www.goodreads.com/book/show/181972…-think-revisited
Reddit, SaaS & Startups >> www.reddit.com/r/SaaS+startups
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Advance B2B >> www.advanceb2b.com
Follow The Growth Hub on Twitter >> twitter.com/SaaSGrowthHub
Follow Edward on Twitter >> twitter.com/NordicEdward
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