The return on Product Marketing efforts is infinite because it impacts all business metrics.
As we get better at targeting our ideal customers:
1) Overall funnel efficiency improves
2) Gross margins go up
3) Win rates, LTV and NRR dramatically improve
4) Customers are happier and refer more business
As a company builds a more focused Messaging, Positioning and Go-To-Market, the lost revenue from bad fit customers is more than made up by the increased volume and revenue from its best fit customers.
This trade-off isn’t visible initially because you have to say no to revenue before you start landing more of your best fit customers. That’s why founders, CEOs and executive teams get uncomfortable. It's uncomfortable to say no to revenue.
The better companies get at saying no to bad revenue though, the more their revenue quality improves. It also brings way more focus to the entire business because Product, Sales and CS all align around helping best-fit customers succeed.
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