Start-Ups Navigating a Turbulent Market: Strategies for Success in 2023 - Insights from THELIONS' Poll

The article is based on a poll run on 03/23.

The past two years have been a challenging time for businesses of all sizes and across all industries. The ongoing pandemic has forced companies to reevaluate their strategies and adapt to an ever-changing economic climate. We have a company history and network of over a decade working with Saas Start-ups and GTM talent so we conducted a poll to understand which strategies businesses are employing to achieve success in 2023.

Poll Disclosure:

It's important to note that these results come from people in the SaaS world who are predominantly sales-adjacent folk. While the sample size may be small, and niched, it's still helpful to understand the strategies that other businesses are using to achieve success.

Insights:

This is an expansion piece to understand and provide validation, relevancy, and definition of the reported findings.

Outbound Sales:

33% of respondents in the poll identified outbound sales as a key strategy for achieving success in a turbulent market. The SaaS industry has been particularly successful in using outbound sales to drive revenue growth. According to research by Salesforce, 70% of high-performing SaaS companies cite outbound sales as a key driver of growth. Additionally, a report by SalesHacker found that successful SaaS companies allocate an average of 25% of their revenue to outbound sales.

What are Outbound sales?

Outbound sales involve reaching out to potential customers and pitching them your product or service. In a turbulent market, it's essential to reach out to new customers and create a steady flow of revenue. Outbound sales can help businesses achieve this by generating new leads and opportunities. The key to success with outbound sales is to personalize your approach and build strong relationships with your customers.

Customer Success:

33% of respondents identified customer success as a key strategy for achieving success in a turbulent market. According to research by Deloitte, SaaS companies with high levels of customer success have an average annual growth rate of 30%, compared to 14% for companies with lower levels of customer success. Additionally, successful SaaS companies allocate an average of 13% of their revenue to customer success, according to a report by the Customer Success Association.

What is Customer Success if you don't know?

Customer Success is keeping your existing customers happy. It is just as important as acquiring new customers. Customer success involves ensuring that your customers are achieving their goals with your product or service. By focusing on customer success, businesses can build loyalty and create long-term relationships with their customers. This can lead to repeat business, positive brand reputation, and referrals, which can help sustain the business in the long run.

Partnerships and Alliances:

In a volatile market, forming partnerships and alliances can be a key strategy for achieving success. 23% of respondents in a recent poll identified partnerships and alliances as essential for navigating unpredictable market conditions. Collaborating with other businesses can provide access to new customers, resources, and expertise. The SaaS industry is no exception, and according to TechCrunch, companies that form partnerships have an average annual growth rate of 23%, compared to 15% for those that don’t. Furthermore, successful SaaS companies allocate an average of 16% of their revenue to forming and maintaining partnerships and alliances, according to a report by the SaaS Partnership Network.

Wondering what Partnerships and Alliances are?

Partnerships and alliances refer to the collaboration between businesses to achieve shared goals. In a volatile market, partnering with other businesses can provide a sense of stability and access to resources that may not otherwise be available. This approach can help businesses expand their reach, access new markets, and create new opportunities for growth. However, it's essential to choose partners carefully, ensuring that values and goals are aligned, and the partnership is mutually beneficial.

Inbound Marketing:

In a market full of unknowns, having a strong marketing strategy is crucial. While inbound marketing is not the top strategy, 12% of respondents still identified it as a key factor in achieving success. Inbound marketing involves attracting potential customers through content marketing, social media, and search engine optimization. According to research by HubSpot, inbound marketing generates 54% more leads than traditional outbound marketing. Successful SaaS companies allocate an average of 14% of their revenue to inbound marketing, according to a report by the SaaS Content Marketing Association.

What exactly is inbound marketing and why is it so low?

Inbound marketing is a strategy that involves creating valuable content to attract potential customers to your website or product. However, in a turbulent market, simply relying on inbound marketing may not be effective, as potential customers may not be actively seeking new products or services. It's important to understand the distinction between inbound marketing and marketing as a whole, which includes branding, advertising, sales tactics, and market research, among other things. In challenging times, businesses may need to adjust their marketing strategy to support other key areas, such as outbound sales, customer success, and partnerships. Marketing can play a crucial role in these efforts by creating a strong brand identity, building credibility with potential customers, and providing educational materials to support customer success. Additionally, joint marketing efforts and co-branded materials can strengthen partnerships. In short, a well-rounded marketing strategy that supports various aspects of a business can help drive success in an uncertain market.

Conclusion:

The ongoing pandemic has created a challenging economic climate for businesses around the world. To achieve success in this ever-changing market, businesses need to re-evaluate their strategies and focus on the most crucial factors. The poll conducted by us @THELIONS provides us with valuable insights into the strategies that Saas professionals are adopting to achieve success. Outbound sales, customer success, partnerships, and alliances are all crucial strategies for businesses to consider. Inbound marketing seems to be identified as of lesser importance in the current market by respondents. By focusing on these factors and adapting to the changing market conditions, businesses can continue to thrive in a turbulent economy.