{"id":13323,"date":"2019-10-18T23:48:33","date_gmt":"2019-10-18T21:48:33","guid":{"rendered":"https:\/\/chartmogul.com\/blog\/?p=13323"},"modified":"2023-08-11T11:14:26","modified_gmt":"2023-08-11T09:14:26","slug":"saastock-2019","status":"publish","type":"post","link":"https:\/\/chartmogul.com\/blog\/saastock-2019\/","title":{"rendered":"How SaaS is Like Monty Python and 6 Other Things I Learned at SaaStock 2019"},"content":{"rendered":"\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p>It\u2019s not every day that you can hear a Monty Python reference at a conference like this.<\/p><\/blockquote>\n\n\n\n<p>I have just used it to describe one of the largest and most impressive booths at SaaStock 2019 \u2014 a 2-storey giant with an <em>observation deck<\/em> and a cafeteria on top.<\/p>\n\n\n\n<p>I couldn\u2019t get past the fact that it would be perfect for recreating <a href=\"https:\/\/www.youtube.com\/watch?v=ey0wvGiAH9g\">an iconic scene<\/a> from the 1975 classic <em>Monty Python and the Holy Grail<\/em>.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" src=\"https:\/\/chartmogul.com\/blog\/wp-content\/uploads\/2021\/06\/lh--t__XqyRo1j4e5HMmpiBsAa8s5shJhfzCztJrrT9h9OscowWM45LeG9snCNVQi9C0ItmDlfldeYySSGFTRHO8tKUI05M2tAmfO5c1GKFrb0sn0T8syKcabcRBFa599IQokR44CIDq_qI.gif\" alt=\"The French taunting from Monty Python and the Holy Grail\"\/><figcaption>Thankfully, SaaStock attendees at large are past the taunting stage<\/figcaption><\/figure><\/div>\n\n\n\n<p>British comedy has <em>matured<\/em> a lot in the last few decades, so people now don\u2019t have to resort to a film that\u2019s over 40 years old for entertainment.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/chartmogul.com\/blog\/wp-content\/uploads\/2021\/06\/lh--t__dUVLy3uxXVQZIzlDqj9MB8vzRo4wDPtlH_Hx-Hpz8Eq_jlKdjQJsUbaDL9QMQxewC4eod6dTL0rZfSzRkqvetyf_cIzpzoXUaxtlDXkLSCeoEceAwWHwvmJilscLVn-xLEGxnWjr.jpeg\" alt=\"The view from the top of the tallest booth at SaaStock 2019\" width=\"576\" height=\"768\"\/><figcaption>The view from the top of the <em>castle<\/em><\/figcaption><\/figure><\/div>\n\n\n\n<p>Oddly, after 3 days packed with new connections, great talks, and a lot of wisdom, I feel like a similar trend is happening in SaaS too.<\/p>\n\n\n\n<p>When I started thinking about this roundup of SaaStock 2019, I was worried about fitting so much into a single blog post.<\/p>\n\n\n\n<p>Now I am actually surprised that I can fit it one word.<\/p>\n\n\n\n<p><em>Maturity<\/em>.<\/p>\n\n\n\n<p>SaaS is getting more mature as an industry and you can see that everywhere \u2014 there are more attendees at conferences like SaaStock, every company has multiple competitors, the stakes are getting higher, the conversations more sophisticated, and so on.<\/p>\n\n\n\n<p>Maturity (in all aspects of the word) is what binds all the main messages from SaaStock.<\/p>\n\n\n\n<p>We\u2019re still the same people who can gather at a conference that\u2019s named after <em>Woodstock<\/em>. But the community is also getting much smarter (and <em>mature<\/em>) about the challenges and the problems we should be talking about.&nbsp;<\/p>\n\n\n\n<p>For proof, just look at some of the main points from this year:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>What does it mean to be in the <em>Golden Age<\/em> of SaaS<\/li><li>How to think about (and do) marketing as you grow<\/li><li>Why small improvements are more important than big bets<\/li><li>And also&#8230; why we have to take care of ours and our teams\u2019 mental health.<\/li><\/ul>\n\n\n\n<p>Here\u2019s a rundown of some of the best insight I gained from attending SaaStock 2019.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>The Golden Age of SaaS: From attention to value<\/strong><\/h2>\n\n\n\n<p>When we\u2019re talking about SaaS becoming more mature, it doesn\u2019t mean the industry is past its prime.<\/p>\n\n\n\n<p><a href=\"https:\/\/twitter.com\/chughesjohnson\/\">Claire Hughes Johnson<\/a>, the COO of Stripe, nailed down the point in her SaaStock 2019 talk, arguing that we\u2019re just entering the Golden Age of the industry.<\/p>\n\n\n\n<p>So far, a lot of the value creation of the internet has happened from either moving commerce to digital channels or from monetizing attention (i.e. advertising).<\/p>\n\n\n\n<p>Claire argues that the real potential of the internet is the creation of entirely new businesses.<\/p>\n\n\n\n<p>To power this shift, we need infrastructure, which supports the easy establishment and distribution of the new internet-enabled products and services.<\/p>\n\n\n\n<p>This is already at play \u2014 services like AWS, Stripe, and others have brought down the cost of starting and running a business to a fraction of what they used to be just a decade ago.<\/p>\n\n\n\n<p><em>Consumerizing<\/em> even more parts of the activities of a typical business (logistics-as-a-service, etc.) will create an opportunity for even more companies to disrupt large incumbents in <em>traditional<\/em> industries such as automotive and others.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Marginal gains are the new rule<\/strong><\/h2>\n\n\n\n<p>As the industry matures and becomes more competitive, it becomes natural to focus on making small improvements that have the potential to move the needle.<\/p>\n\n\n\n<p>This was the main point in <a href=\"https:\/\/twitter.com\/indojacco\">Jacco van der Kooij<\/a>\u2019s keynote <strong>Sales as a Science<\/strong>.<\/p>\n\n\n\n<p>The typical funnel\/loop in SaaS looks like a system:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>A # of new <em>Leads<\/em> comes into the funnel<\/li><li>A certain % of those leads is nurtured into becoming <em>Sales qualified leads<\/em><\/li><li>The sales team works to turn a certain % of the SQLs into <em>Paying customers.<\/em> (Sometimes they have to offer discounts that have a certain $\/% effect on the overall price\/ACV that customers pay.)<\/li><\/ul>\n\n\n\n<p>This can be shown as a simple equation:<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p>Leads x % SQLs x % Sales Closed x % Discount = $ new Revenue.<\/p><\/blockquote>\n\n\n\n<p><a href=\"https:\/\/medium.com\/@alangleeson\/ten-key-lessons-from-saastock-19-abd086b53d1c\">According to Jacco<\/a>, working to improve each link of the chain (through improving conversion rates for example) would have a higher impact on your business, than a large change in one step (e.g. doubling the number of leads).<\/p>\n\n\n\n<p>The same applies to every part of your business \u2014 product, marketing, even your <a href=\"https:\/\/chartmogul.com\/blog\/customer-acquisition-cost-cac\/\">business model<\/a>.<\/p>\n\n\n\n<p>Improve your <a href=\"https:\/\/chartmogul.com\/blog\/arpu-average-revenue-per-user\/\">ARPA<\/a> and your retention and your <a href=\"https:\/\/chartmogul.com\/metrics\/ltv\/\">LTV<\/a> (and ultimately the bottom line) will follow.<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/chartmogul.com\/blog\/wp-content\/uploads\/2021\/06\/lh--t__p6p-OlcIqGf61bEAUq3YigO9MzySrH3pr1ohxbv7ucimpfFJUV1IeL6RJ6eDhyyJ7eARlYjTEA3OESqtIeBSdgePaFvjOT_dyDgJKjKsfxgVeepCodlRqXoHJq86tPLfCUm1Cetv.png\" alt=\"LTV = (ARPA x Gross Margin %) \/ Customer Churn Rate\"\/><figcaption>The simple LTV formula<\/figcaption><\/figure>\n\n\n\n<p>In a market with many competitors and saturated marketing channels, this type of gradual improvement will be more effective in finding ways to grow.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>To succeed in a crowded market you have to know your business<\/strong><\/h2>\n\n\n\n<p>One of the panel discussions included <a href=\"https:\/\/twitter.com\/guillaumecabane\">Guillaume Cabane<\/a>, who is the Founder of Growth Ex Machina, <a href=\"https:\/\/twitter.com\/jvandeboom\">Jason VandeBoom<\/a>, Founder &amp; CEO of ActiveCampaign, <a href=\"https:\/\/twitter.com\/abustamanteg\">Alonso Bustamante<\/a>, Special Projects at Cloudflare and <a href=\"https:\/\/twitter.com\/briehanburke\">Briehan Burke<\/a>, who\u2019s one of the investors at Keen Venture Partners.<\/p>\n\n\n\n<p>They shared their thoughts on why founders shouldn\u2019t give up on a market just because it is dominated by a large incumbent.<\/p>\n\n\n\n<p>Nimble entrants have a number of advantages in such cases:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>They don\u2019t need to educate their users about a new category but can rely on the work done by the established player(s).<\/li><li>They can stay close to a well-defined group of customers and move quickly to solve their pains.<\/li><li>They don\u2019t need to <em>fight the war<\/em> across a full front, but can instead <a href=\"https:\/\/medium.com\/@alangleeson\/ten-key-lessons-from-saastock-19-abd086b53d1c\">focus on a small area<\/a> (specific segment, use case, or geography) where they are best positioned to get a small <em>win<\/em> and expand from there.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Marketing starts from the inside out<\/strong><\/h2>\n\n\n\n<p><a href=\"https:\/\/twitter.com\/destraynor\">Des Traynor<\/a> from Intercom caught the attention of everyone at SaaStock 2019 by claiming we obsess too much over Product\/Market Fit.<\/p>\n\n\n\n<figure class=\"wp-block-embed-twitter aligncenter wp-block-embed is-type-rich is-provider-twitter\"><div class=\"wp-block-embed__wrapper\">\n<p class=\"video-container\"><blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">WATCH: Des Traynor, Intercom LIVE @ <a href=\"https:\/\/twitter.com\/hashtag\/SaaStock19?src=hash&amp;ref_src=twsrc%5Etfw\">#SaaStock19<\/a> <a href=\"https:\/\/twitter.com\/hashtag\/Dublin?src=hash&amp;ref_src=twsrc%5Etfw\">#Dublin<\/a> <a href=\"https:\/\/t.co\/arboSJr5eX\">https:\/\/t.co\/arboSJr5eX<\/a><\/p>&mdash; SaaStock (@SaaStock) <a href=\"https:\/\/twitter.com\/SaaStock\/status\/1184039896949776384?ref_src=twsrc%5Etfw\">October 15, 2019<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<\/div><\/figure>\n\n\n\n<p>He identified the 3 main stages that startups go through:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>The <strong>Early<\/strong> stage which ends when a startup becomes a <em>breakout success<\/em>.<\/li><li>The <strong>Growing Up<\/strong> stage, which finishes with the company becoming an <em>established player<\/em>.<\/li><li>And the <strong>Standard<\/strong> stage, in which the startup turns into a <em>mainstream company<\/em>.<\/li><\/ul>\n\n\n\n<p>Once a company is out of its early stage of development, it really needs to start thinking about how it markets the product.<\/p>\n\n\n\n<p>Unfortunately, that\u2019s where most founders get it wrong.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p>A lot of you have probably said to investors something like \u201c<em>We have a 100 customers, and we haven\u2019t even marketed yet!<\/em>\u201d That\u2019s not necessarily a good thing because adding marketing is a really hard challenge and most people will make a massive mistake doing it. All you\u2019re saying \u201c<em>There\u2019s a ****load of risk yet to be realized!<\/em>\u201d<\/p><cite>Des Traynor, Intercom<\/cite><\/blockquote>\n\n\n\n<p>To maximize your chances for success, Des suggests that you start by looking at the <em>bottom<\/em> of your funnel and move your way up.<\/p>\n\n\n\n<p>That requires a really hard look at how people use your product and who they are and then using that to move one level up in the chain and figure out what makes people move from it to the next one.<\/p>\n\n\n\n<p>This process is slower and harder to crack but ultimately yields better results.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Take care of your (and your team\u2019s) mental health<\/strong><\/h2>\n\n\n\n<p>When we talk about maturity in SaaS, we have to acknowledge it comes in different forms.<\/p>\n\n\n\n<p>In a panel discussion titled <strong>How to address tech&#8217;s ongoing mental health catastrophe<\/strong>, <a href=\"https:\/\/twitter.com\/amyrlewin?lang=en\">Amy Lewin<\/a> from Sifted, <a href=\"https:\/\/twitter.com\/joekrancki?lang=en\">Joe Krancki<\/a>, Venture Partner at Instanda, <a href=\"https:\/\/twitter.com\/nikkimcclaff?lang=en\">Nicola McClafferty<\/a>, Investment Director at Draper Esprit, and <a href=\"https:\/\/twitter.com\/jamesas\/status\/1034181829312446464\">James Ski<\/a>, who\u2019s the Founder &amp; CEO at Sales Confidence talked about creating a culture that doesn\u2019t put mental wellbeing on the back burner.<\/p>\n\n\n\n<p>One of the highlights of the discussion was the idea that mental health should be a top-down priority: with investors advocating for their founders, who in turn make it a focus for their employees as well.<\/p>\n\n\n\n<figure class=\"wp-block-embed-twitter aligncenter wp-block-embed is-type-rich is-provider-twitter\"><div class=\"wp-block-embed__wrapper\">\n<p class=\"video-container\"><blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">\u201cTaking time off isn\u2019t a red flag. I value self awareness in a founder. It shows me this person is thinking about their busines in a proactive way.\u201d <a href=\"https:\/\/twitter.com\/amyrlewin?ref_src=twsrc%5Etfw\">@amyrlewin<\/a> <a href=\"https:\/\/twitter.com\/Siftedeu?ref_src=twsrc%5Etfw\">@Siftedeu<\/a>, <a href=\"https:\/\/twitter.com\/JoeKrancki?ref_src=twsrc%5Etfw\">@JoeKrancki<\/a>, <a href=\"https:\/\/twitter.com\/NikkiMcClaff?ref_src=twsrc%5Etfw\">@NikkiMcClaff<\/a>, <a href=\"https:\/\/twitter.com\/jamesas?ref_src=twsrc%5Etfw\">@jamesas<\/a> address tech\u2019s ongoing mental health problem <a href=\"https:\/\/twitter.com\/SaaStock?ref_src=twsrc%5Etfw\">@saastock<\/a> <a href=\"https:\/\/twitter.com\/hashtag\/saastock19?src=hash&amp;ref_src=twsrc%5Etfw\">#saastock19<\/a>. <a href=\"https:\/\/t.co\/0EBZPocF35\">pic.twitter.com\/0EBZPocF35<\/a><\/p>&mdash; HUCKLETREE (@huckletree) <a href=\"https:\/\/twitter.com\/huckletree\/status\/1184531756600516610?ref_src=twsrc%5Etfw\">October 16, 2019<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<\/div><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Our secret to success: a relentless focus<\/strong><\/h2>\n\n\n\n<p>Our CEO Nick did a live recording for the <a href=\"https:\/\/www.intercom.com\/blog\/podcasts\">Inside Intercom podcast<\/a>. The episode is yet to be published, but I\u2019m giving you a sneak peek of details about ChartMogul\u2019s journey that he shared.<\/p>\n\n\n\n<figure class=\"wp-block-image is-resized\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/chartmogul.com\/blog\/wp-content\/uploads\/2021\/06\/lh--t__JBnlOvbMRzING1iX0RKiTxAQgsEHLq4EcHhDyV7IFSRF9PikLXUsGKWimacEoFjM8TTsle8XvSPEvJ7JVSyhPen5FtHFba2FLHwcmtDiBsqULywLA7gG7NrvEtdPVmKwR8djHJ2p.jpeg\" alt=\"ChartMogul CEO Nick Franklin giving an interview for the Inside Intercom podcast\" width=\"800\" height=\"530\"\/><figcaption>The <em>silent disco<\/em> concept applied to podcasting: only those wearing headphones could listen to the interview.<\/figcaption><\/figure>\n\n\n\n<p>In line with the main theme of the conference (and this article), Nick shared the 2 pillars of ChartMogul\u2019s strategy:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Improving retention to maximize the value of each relationship.<\/li><li>Maintaining focus on our core product and making sure it\u2019s the best tool on the market.<\/li><\/ul>\n\n\n\n<p>When you lose a customer, it\u2019s not just the monthly subscription that\u2019s gone, but also any future natural upsell value from that customer\u2019s growth and possibly even word-of-mouth.<\/p>\n\n\n\n<p>We believe that the secret to success in a highly-competitive market is to focus on forging strong relationships with our customers, developing the product around their core needs, and growing alongside them.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Conclusion: Looking forward to SaaStock 2020!<\/strong><\/h2>\n\n\n\n<p>My personal highlight from SaaStock 2019 can also be summarized in one word: people.<\/p>\n\n\n\n<p>It is impossible to meet and talk to customers, practitioners, and investors outside an event like this \u2014 and SaaStock has the scale and the clout to collect the best in the field.<\/p>\n\n\n\n<p>I am already looking forward to next year, but if you want to connect, you don\u2019t have to wait until then \u2014 just <a href=\"https:\/\/twitter.com\/nochainmarkov\">get in touch on Twitter<\/a>.<\/p>\n\n\n\n<p>Hope to see you there!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>2 days of talks and meetings at SaaStock 2019 made one thing clear: The industry is moving out of its baby phase and into its Golden Age.<\/p>\n","protected":false},"author":69,"featured_media":13329,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[109,209],"class_list":["post-13323","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-how-we-build","tag-conferences","tag-saastock"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.8 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>6 Things I Learned at SaaStock 2019 | ChartMogul<\/title>\n<meta name=\"description\" content=\"2 days of 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