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The core product is very B2C, but the upgrade to paid has very SMB B2B metrics, and 80% of the revenue is subscription based. While common in B2C, it’s interesting how big a deal this is for Duolingo. So it’s doing what Wall Street wants today. But is Duolingo SaaS? Well, it’s SaaS-ish.
“Churn” is a term we all use in SaaS as a core metric, but its roots, as near as I remember and can tell, come from our B2C colleagues. Folks churn out of their Verizon plan, their Netflix subscription, etc. In a low-end subscription model for a tool, not a solution (e.g., the dynamics are similar. Like Verizon.
Indeed, among our customers were B2C companies, small businesses, and large enterprises along with customers in places and industries well beyond Silicon Valley. You can’t find email lists using Job-to-be-Done, but you can find ones for B2Csubscription businesses that have a high volume of website traffic.
It Takes Time To Bounce Back Jason was the first investor in RevenueCat , a company that automates mobile subscriptions on your phone. 30% of all mobile apps with a paid subscription use RevenueCat to manage it. An early thing Jason wrote on SaaStr is that B2B lags B2C by about two years. Why is that interesting?
How is enterprise SaaS marketing different compared from acquiring and retaining users for an SMB? Inbound works really well for smaller SaaS businesses, whether B2B or B2C. How is enterprise SaaS marketing different from downmarket/SMB-B2B SaaS marketing? Enterprise SaaS marketing, however, is a different story entirely.
Why I stayed I think is … I talk a lot about like I think that the term is B2B and B2C are kind of silly. Tolithia Kornweibel : I definitely was looking for a new challenge, but I also had a hypothesis, which I think has borne out to be true, which is there are some ways in which B2B is very far behind B2C marketing.
This is even more so for pure B2B SaaS where Freemium’s ROI can take longer to manifest, in comparison to products like Vidyard, Notion, and Typeform, whose B2C nature intrinsically predispose them for success with this strategy. Playing the long game. Let’s put this in context for a minute. End users from large businesses.
Annual Recurring Revenue (ARR) is the value of contracted, often subscription-based revenues normalized for one calendar year. It is called Annual Contract Value (ACV) when annualized and Average Purchase Value (APV) when the revenue derived is not subscription-based. Base Salary. BASHO Email. Buying Intent. Gatekeeper.
I'll walk through some examples: Most B2C companies driven by an ads model — companies like Facebook, WhatsApp, and Yelp — live on the left hand end of the spectrum. subscription e-commerce) typically live here. On far left you have businesses that have low ARPU and as a result have to use low CAC channels to drive customers.
Business to Consumer (B2C). SMB customers will want high-touch sales engagement and service delivery but SMM SaaS companies will likely not have the budget necessary to justify providing this level of sales support. These market and product characteristics make this GTM strategy best suited for B2C SaaS companies. Enterprise.
This is even more so for pure B2B SaaS where Freemium’s ROI can take longer to manifest, in comparison to products like Vidyard, Notion, and Typeform, whose B2C nature intrinsically predispose them for success with this strategy. Playing the long game. Let’s put this in context for a minute. End users from large businesses.
David Vogelpohl 20:39 You know, it’s funny, the examples you gave, we are often in these kinds of conversations, talk about b2b and b2c. And the reality is, especially for the mid market, a lot of that b2b is a self serve motion, right? And I would say like, one of the things we quickly learned in Canva.
Software subscriptions are the life of every SaaS business and must be accounted for properly in your general ledger. That is SaaS subscription revenue and the corresponding deferred revenue balance. I’m also a board member of Beek , a B2Csubscription audiobook company, and I’ve advised many companies across both models.
I talked to another and it says, “Look, you’ve done some sales at the SMB and up side, so bring in a sales lead.” The founders knew one problem, which was how to get billing to work, subscription billing to work on mobile devices, how to get it to work on iOS and Android. They didn’t. Not b t, right?
especially for SMB SaaS startups. In trying to find a PRM solution for Unbounce, it was frankly hard to find a provider with a focus on SMB SaaS. Most PRMs either leaned too far in favor of enterprise software on one end (reseller) or B2C consumer products on the other (affiliate). Tom Tunguz, Venture Capitalist at Redpoint.
I think I would agree with that a lot more and say probably in B2C it’s quite the opposite. B2C is so much more about storytelling because of the big campaigns that … the big, sorry, budgets that folks have. Ryan Bonnici: I don’t think so. I think in marketing in general, no. B2B marketing, yes.
Note: FastSpring’s Revenue and Subscription Dashboards quickly show our customers where their revenue is coming from, the average order value or MRR per country, promotions performance per country, and more. “So I can see: is there an ecosystem around what’s happening that I can maybe try to tie into with my marketing?”
Cassie spent the first pre-SaaS chapter of her tech career in growth roles in subscription and marketplace businesses (TheLadders.com, GLG). It took me a long time to admit to myself that I don’t enjoy transactional SMB sales. Cassie is a graduate of Duke University and holds an MBA from the Tuck School of Business at Dartmouth.
Highlights: 06:07 – 3 lessons from B2C to that B2B marketing needs to learn. And I was curious because me, I’ve always, a lot from B2C marketing. Um, and it does feel like sometimes we’re just like three to five years behind a lot of the trends that are happening and in B2C. Leading a large, remote-first team.
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