Many SaaS companies leave money on the table by relying on organic growth and failing to develop a relationship between the organization and the product.
The best way to complement bottom-up growth is to have a top-down account sales strategy. Let users spread your solution across the organization. But, while that is happening, work on developing strategic relationships with high-level decision makers in the organization.
Land and expand is about transforming your product from a tool that some employees use, to a solution that the organization has adopted.
MORE IDEAS FROM THE ARTICLE
Land and expand is a long-term strategy that requires patience and resources. As such, you should assign it KPIs so you can track and monitor its impact.
KPIs can include:
In sales, “Land and Expand” is a strategy to land a customer with a small deal, and then sell into the organization to expand your footprint to more seats, additional departments or more products and services.
Land and expand plays out like this in a SaaS:
If you have a great product, it will grow organically inside the company. User #1 will tell a colleague, then they will invite more colleagues, and soon your product will spread throughout the organization.
It’s great to have this network effect inside an organization, but organic user growth is not a land and expand strategy. It’s a by-product of product-led growth. It’s bottom-up growth, and it’s great.
But it’s not enough.
Customer-centric marketing is an approach to marketing that prioritizes the wants and needs of the customer over any other factor in regards to their interests.
Although their goal is to grow their business, customer-centric marketing shows us that they will be able to grow while at the same time ensure that their product or service can improve some aspect of the customers' work or life.
Slack, Dropbox or Zoom have applied specific strategies to win customers – tactics that resemble those of consumer companies rather than enterprise firms.
The go-to-market playbook for early-stage B2B founders:
Madhavan Ramanujam, board member and Partner at Simon-Kucher & Partners (a global strategy consulting firm) answered this question during Office Hours at Redpoint in Aug 2021. He is the author of Monetizing Innovation.
Massive companies have been built using both pricing structures: Salesforce and Adobe bill per seat while Snowflake and Twilio charge per use. Deciding which to use involves considering factors such as customer preference and competition.
❤️ Brainstash Inc.