SaaStr 740: The Top 10 GTM Mistakes I See Founders Making Today with SaaStr CEO and Founder Jason Lemkin
Digest
Jason Lemkin, founder of SaaStr, discusses 10 common go-to-market mistakes founders make, drawing on his experience working with numerous SaaS companies. He emphasizes the importance of hiring sales leaders who can effectively demo the product and carry a bag, warning against hiring product marketers for demand generation and strategists who lack execution. Lemkin also stresses the need for founders to remain actively involved in sales, even as their companies grow, and to avoid cutting marketing budgets to zero, even during challenging economic times. He cautions against the overreliance on instant ROI metrics like scans and highlights the importance of nurturing customer relationships for long-term success. Lemkin also advises against hiring individuals who are overly focused on past experiences or logos, emphasizing the need for a strong work ethic and a positive attitude. He concludes by urging founders to prioritize growth over profitability and to invest in the future of their businesses.
Outlines
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Introduction
This Chapter introduces the Saster Podcast and its focus on SaaS and cloud topics. It also highlights the upcoming SaaStr Europa 2024 event in London, England, and provides a discount code for tickets.
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Go-to-Market Mistakes Founders Make
This Chapter dives into the main topic of the podcast, focusing on 10 common go-to-market mistakes founders make. Jason Lemkin, a SaaS expert, shares his insights and actionable advice based on his experience working with numerous SaaS companies.
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Instant ROI and Customer Success
This Chapter explores the dangers of focusing solely on instant ROI and its impact on customer success. Jason Lemkin discusses the shift towards measuring success based on scans at events, highlighting the importance of long-term customer relationships and the potential harm of price increases without commensurate value.
Keywords
SaaStr
SaaStr is a leading platform and community for SaaS founders and executives. It provides resources, events, and networking opportunities to help SaaS businesses grow and succeed. SaaStr is known for its insightful content, including podcasts, articles, and conferences, which offer valuable advice and best practices for SaaS companies.
Go-to-Market
Go-to-market (GTM) refers to the strategy and execution plan a company uses to launch and sell its products or services in a new market. It encompasses various aspects, including market research, product development, pricing, marketing, sales, and customer service. A successful GTM strategy aligns all these elements to achieve the desired market penetration and revenue growth.
Jason Lemkin
Jason Lemkin is a prominent figure in the SaaS industry, known for his expertise in go-to-market strategies, sales, and marketing. He is the founder of SaaStr, a leading platform for SaaS professionals, and a frequent speaker and writer on SaaS topics. Lemkin is recognized for his insightful and practical advice, which helps SaaS companies navigate the challenges of growth and success.
VP of Sales
The Vice President of Sales (VP of Sales) is a senior-level executive responsible for leading and managing a company's sales organization. They oversee sales strategy, team performance, revenue targets, and customer relationships. A successful VP of Sales possesses strong leadership, communication, and sales skills, along with a deep understanding of the company's products and target market.
Product Marketer
A product marketer is responsible for promoting and positioning a company's products or services to the target market. They work closely with product management, sales, and marketing teams to develop and execute marketing campaigns, create compelling content, and educate customers about the value proposition of the product. Product marketers often have a strong understanding of both product features and customer needs.
Demand Generation
Demand generation refers to the marketing activities aimed at creating interest and demand for a company's products or services. It involves various tactics, such as content marketing, social media marketing, email marketing, paid advertising, and events. Effective demand generation strategies generate qualified leads, nurture them through the sales funnel, and ultimately drive sales conversions.
Customer Success
Customer success is a strategic approach focused on helping customers achieve their desired outcomes with a company's products or services. It involves proactive engagement, support, and guidance throughout the customer journey. A successful customer success team builds strong relationships with customers, identifies potential challenges, and provides solutions to ensure customer satisfaction and retention.
Word of Mouth
Word of mouth marketing refers to the informal communication about a product or service between customers. It is considered a highly influential form of marketing, as recommendations from trusted sources carry significant weight. Companies strive to foster positive word of mouth by delivering exceptional customer experiences, encouraging customer reviews, and engaging with customers on social media.
AI
Artificial intelligence (AI) is a branch of computer science that focuses on creating intelligent agents, which are systems that can reason, learn, and act autonomously. AI applications are increasingly prevalent in various industries, including SaaS, where they are used to automate tasks, personalize experiences, and improve decision-making.
CRO
A Chief Revenue Officer (CRO) is a senior-level executive responsible for overseeing all revenue-generating activities within a company. They typically have a broad range of responsibilities, including sales, marketing, customer success, and pricing. A successful CRO possesses strong leadership, strategic thinking, and analytical skills, along with a deep understanding of the company's business model and target market.
Q&A
What are some common go-to-market mistakes founders make?
Founders often make mistakes like hiring VPs of sales who can't demo the product, relying on product marketers for demand generation, cutting marketing budgets to zero, and focusing too much on instant ROI.
Why is it important for VPs of sales to be able to demo the product?
If a VP of sales can't effectively demo the product, they can't effectively sell it. This can lead to lost deals and a lack of confidence in the sales team.
What are the dangers of cutting marketing budgets to zero?
Cutting marketing budgets to zero can stifle future growth and lead to a decline in pipeline. It's important to find a balance between cost-cutting and investing in the future.
Why is it important to nurture customer relationships?
Nurturing customer relationships is crucial for long-term success. Happy customers are more likely to refer new business, renew their contracts, and become advocates for your company.
How can founders avoid hiring individuals who are overly focused on past experiences or logos?
Founders should look for individuals with a strong work ethic, a positive attitude, and a willingness to learn. They should also be wary of individuals who are overly critical of their past employers or who are solely focused on working for a big-name company.
Show Notes
SaaStr 740: The Top 10 GTM Mistakes I See Founders Making Today with SaaStr CEO and Founder Jason Lemkin
If you’ve read SaaStr or have been around for the last decade, you might be familiar with some of the repeated GTM mistakes founders tend to make, but the world of hiring, people, scaling, and workplace expectations are significantly different today than they were before March 2020.
SaaStr Founder and CEO, Jason Lemkin, shares the top GTM mistakes founders make today and some cheat codes to avoid them. Some are mistakes we make again and again, and others are newer territory as we evolve.
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SaaStr hosts the largest SaaS community events on the planet.
Join us in 2024 at:
- SaaStr Annual: Sept. 10-12 in the SF Bay Area. Join 12,500 SaaS professionals, CEOs, revenue leaders and investors for the world's LARGEST SaaS community event of the year. Podcast listeners can grab a discount on tickets here: https://www.saastrannual2024.com/buy-tickets?promo=fave20
- SaaStr Europa: June 5-6 in London. We'll be hosting the 5th SaaStr Europa in London for two days of content and networking. Join 3,000 SaaS and Cloud leaders. Podcast listeners can grab a discount on Europa tickets here: https://www.saastreuropa2024.com/buy-tickets?promo=fave200
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