Ashley Murphy is the director of growth at OpenView Venture Partners, a VC firm that invests solely in B2B expansion-stage software companies. The firm was an early investor in Calendly, Datadog, and Expensify and they believe product-led growth companies are leading the way.
B2B companies that focus on user delight are valued at a 2X premium compared to other SaaS businesses. Why? Because products that users love attract more attention and sell themselves.
HOW TO: Make product usage the primary driver of user acquisition, retention, and expansion
1. Start by making a product that only does 1 thing, but does it extremely well
Deliver immediate value by solving a common pain point, make it incredibly easy to use, and remove any non-critical bells and whistles that distract users from the key function.
Develop your top buyer personas to identify their pain points →
2. Offer multiple pricing levels, including a free trial, to collect more user data
Some users may never turn into paying customers but you can still use their data to improve your product and land bigger buyers. A free trial is practically industry standard now anyway.
Take advantage of the data you’re accruing by compiling it into a single location →
3. If a free trial isn’t an option, consider a pay-as-you-go version so users can still try your product without a huge commitment
At larger enterprises, executives may not budge on free trials, so you’ll have to get creative. This tactic can generate some revenue while still allowing users to test your product before jumping in.
Test how far behind your company is in product-led growth and learn how to catch up →
4. Your product is a marketing channel — engage with a handful of excited users and they’ll share it with others
The ALS Ice Bucket Challenge raised $100M in 30 days with this viral tactic. Even if many of your users stick to the free version, they will tell others about it — free WOM advertising!
Calendly gets free users to market to their own networks with this simple CTA →
5. Monitor site visitor behavior, then redesign your site to favor B2B customers
If lots of B2B visitors are leaving your site without a download/purchase, you’re probably not positioning your product correctly — redesign and retest.
Quickly find B2B visitors through their IP address →
Watch users interact with your site to spot patterns — pay special attention to where leads are dropping off →
6. Empower self-service, but layer in human sales efforts to accelerate growth
If you notice a drop-off at any stage of the buyer journey, connect them with an expert on the sales team. Not only can sales answer any questions, but they can also begin to upsell.
Chat is a great way to be instantly available. Lucky Orange has a chat feature if you decide to try that tool, or you can use this standalone chat →