In episode #723, Eric and Neil count out the 7 lessons they learned from running software companies. Tune in to hear what lessons apply to your business.
TIME-STAMPED SHOW NOTES:
- [00:27] Today’s Topic: 7 Marketing Lessons We Learned From Running Software Companies
- [00:43] A lot of the lessons Eric and Neil learned, could work for ecommerce and other internet-based businesses.
- [01:05] #1: It’s not all about the conversion plan. Optimize for lifetime value.
- [01:25] People typically pay for software on a month-to-month or annual basis and people often have to renew plans; this is a consistent revenue stream.
- [02:17] #2: It’s all about on-boarding.
- [02:40] First impressions matter and that applies to software, as well.
- [02:53] #3: You end up losing about 5% of your revenue because user’s credit card numbers expire.
- [03:08] To fix this, companies like GoDaddy sign up for a service called Visa and Mastercard Updater; Visa and Mastercard will automatically update user’s credit card details for a small fee.
- [03:50] #4: Use the “Jobs to be done” framework.
- [04:40] Set aside time for customer development.
- [04:48] #5: You only have one shot with customers. If someone uses your product and doesn’t like it, they will never come back.
- [05:07] First opinions tend to stick in the software world.
- [05:42] BuzzSumo and AHREFS did well because they created exceptional products.
- [06:30] #6: Get your pricing right!
- [07:03] Everyone is going upmarket. Charge for the value you think you are delivering.
- [07:23] #7: Pay attention to market trends and conditions.
- [07:30] KissMetrics was getting trounced by a competitor and didn’t adapt quickly enough.
- [08:01] That’s it for today!
- [08:03] If you could take two minutes out of your day, we are trying to improve the listening experience for you, so go to Singlegrain.com/survey and help us gain some insight into what matters to our listeners.
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