B2B SaaS series of webinars - Product Channel Fit

B2B SaaS: Finding Product Channel Fit

B2B SaaS series of webinars - Product Channel Fit

Richie AI's B2B SaaS series of webinars is on πŸ”Š. The recording of the webinar B2B SaaS: Finding Product Channel Fit is now available on YouTube!

 

Paul Zaruchevsky, Founder/Growth Advisor at NOBSMKT shared his expertise in marketing and digital channels, he helps B2B SaaS companies grow faster.

 

Follow the link to watch the full version of the engaging webinar and Q&A session - https://youtu.be/bvKJVo9-OB8  

Paul talked about the following:

- What PCF means

- Primary use cases for each channel

- The PCF framework

- Treating the discovery of a PCF as an always-on process

- How to prioritize: Priority Score

- An evergreen process: building experimental approach

- Metrics to keep an eye on – early signals of success


If you would like to share the webinar insights with your colleagues, feel free to share the recording:
https://youtu.be/bvKJVo9-OB8 

See you at the next event! Stay tuned for the news, and follow our LinkedIn page for updates.

 

B2B SaaS: Finding Product Channel Fit

 

A great B2B SaaS product only succeeds when it's delivered through the proper distribution channels. The concept of product channel fit is all about assessing whether a business uses the best distribution channel for their product. You'll find the right distribution channel for your product by using a product channel fit framework to analyze your distribution channels and identify areas of improvement.

 

What is a Product Channel fit?

 

The term 'product channel fit' refers to the alignment between a product or service and its distribution channels. It's about ensuring that a product is sold through the right channels. The product channel fit stage is when your product grows exponentially because of a specific channel(s).

 

For example, your product could be intended for young, tech-savvy individuals. The best distribution channel would be online stores like Amazon. Conversely, if you're selling a product to an older traditional consumer base, you'll want to sell through physical retail stores.

 

It's important to pair your product with the best distribution channel to maximize sales and ensure efficient delivery to your target audience.

 

 

Use Cases for Channels in B2B Saas

These are 9 of the most commonly used distribution channels in B2B SaaS:

 

1.    SEO

The SEO channel lets businesses optimize user experience for in-market users to your website when they search for a specific product. For out-of-market users, the SEO channel helps land users who aren't looking for a specific product on your website. Doing so leaves a mental footprint of your brand in their minds.

 

2.    Google Ads

The Google ads channel for in-market users involves bidding on high-intent keywords to show ads to potential customers. For out-market users, you'll bid on low-intent keywords to leave an impression on users who might become customers in the future.

 

3.    Facebook

Facebook is best used for target-response targeting in-market users. For out-of-market users, it's best used to increase brand awareness and as part of a public relations campaign.

 

4.    Instagram

As a distribution channel, Instagram is best used for target response targeting in-market users. And for out-of-market users, it's best used to increase brand awareness and as part of a public relations campaign.

 

5.    LinkedIn

LinkedIn is most commonly used as a distribution channel for ABM retargeting for in-market users. For out-of-market users, it's best used to spread thought leadership and business founder content to increase brand visibility.

 

6.    YouTube

YouTube is most effectively used for brand and product response for in-market users. For out-of-market users, YouTube is used to increase brand awareness.

 

7.    Email

For in-market users, email is used as an onboarding tool. For out-of-market users, email is effective as a lead nurturing vehicle.

 

8. Review Sites

Review sites are only used to boost a positive brand image and increase brand trustworthiness for in-market users.

 

9.    Podcasts

Podcasts are only used for out-of-market thought leadership demonstrations.

 

 

Product Channel Fit Framework

 

A product-channel fit framework is an analytical set of guidelines that help B2B SaaS companies align their products with the right distribution channel for them. The framework includes a set of criteria companies can use to evaluate different distribution channels.

 

 

Layered Model

 

The product channel fit framework is a layered model with the following lawyers from top to bottom.

 

 

Channels: Which channels does the company use?

 

User categories: What type of in-market and out-of-market users does the company target

 

Data points: Which qualitative and quantitative data is collected and analyzed from existing channels?

 

Opportunities: Which type of opportunities does your data-driven approach identify?

 

Hypothesis: Which hypothesis for improving your PCF can you develop from your identified opportunities and data-driven approach?

 

Experiments: Which experiments can you perform to verify your hypothesis?

 

Learning: Which information can you extract about improving your PCF from your experiments?

 

 

PCF Framework Example: Hubspot

 

Let's take Hubspot as an example of a product channel fit framework.

 

●      Channel: Hubspot uses the SEO channel for growth.

 

●      User categories: They use content marketing for out-of-market users.

 

●      Data point: They used some 300,000 quantitative data points consisting of content-related search terms.

 

●      Opportunity: Hubspot identified they could use organic content to capture content market operators.

 

●      Hypothesis: They established the hypothesis that creating blog posts around content marketing will attract content marketing operators.

 

●      Experiments: Hubspot performed two experiments

 

●      They created ten blog posts and captured the email addresses of page visitors for future lead nurturing.

 

●      They created ten blog posts and retargeted visitors with LinkedIn ads.

 

●      Learning: Hubspot learned they could capture 5% of traffic through blog posts, but only 1% are in ICP. They also learned that the CPA of LinkedIn ads is 35% lower than cold reach from other channels.

 

 

Prioritization

 

Effective B2B SaaS marketing requires you to form a targeted approach that doesn't waste resources on channels that don't provide high returns. Every B2B SaaS organization has its own prioritization score, but the following is a good general approximation:

 

 

With this score system, most frameworks score between 1 and 5 and can go up to 10. A higher score indicates a better framework.

 

●      Targeting

A targeting channel is valued by the number of people it can reach. For example, Facebook has a high targeting score since it can target millions of people. Conversely, door-to-door marketing has a low targeting score because it reaches few people.

 

●      Control

Control refers to how easily your organization can alter how the channel is used. For example, Google Ads has a low control score, but emails have a high control score.

 

●      Scale

Scale refers to how fast you can increase your marketing efforts on the channel. For example, review sites score lowest for scale since they're limited to the people searching for your product or company. Youtube has a high scale score since Youtube videos can easily reach a larger audience.

 

●      Time to Value

The time-to-value score refers to how long it takes to receive results from your efforts. Instagram has a high time-to-value score since it provides fast results over a few days. Meanwhile, SEO has a low time-to-value scale since it takes around six months to receive results.

 

●      Cost

Cost refers to the capital needed to open a distribution channel. For example, TV ads are an example of a high-cost channel, and Reddit marketing is a low-cost one.

 

●      Effort

Effort refers to the amount of time needed for each channel. LinkedIn marketing is an example of a low-effort channel, while email marketing is a high-cost one.

 

Putting it in Action

 

Going back to the Hubspot example, they've picked an SEO channel. Using our generalized formula, SEO has the following scores:

 

 

●      Targeting: 4

●      Control: 2

●      Scale: 3

●      Time to value: 2

●      Cost: 3

●      Effort: 3

 

Plugging these numbers in gives a priority score of 1.8. One flaw of this system is that in-market users always outscore out-of-market users.

 

Metrics to keep an eye on

 

You'll use different metrics to track progress for different channels and different user categories.

 

Here are a few examples

 

SEO and Google Ads for in-market users

●      Page visits from organic keywords

●      Conversions from keywords

 

SEO and Google Ads for out-of-market users

●      Page visits from content

●      Lead to Customer CR

 

Facebook, LinkedIn, and Instagram for in-market users

●      Cost per sign up

●      Sign up for Customer CR

 

Facebook, LinkedIn, and Instagram for out-of-market users

●      Reach and Ad Recall

●      Branch search volumes

 

 

In conclusion, every B2B SaaS company needs to find the right distribution channel for their product. The right product channel ensures your business maximizes sales and delivers your product in the most effective way possible. You can determine the best distribution channel through a product channel fit framework.

 


#b2bsaas #webinar #productchannelfit #growth #marketing #digitalmarketing #channels #btob #businesstobusiness

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Financial Wellness for Clients: Strategies for Managing Debt and Building Wealth

Building Strong Relationships in MCA
@richie | Apr 3, 2024

Building Strong Relationships in MCA

The Art of Client Communication: Building Strong Relationships for Long-Term Success

The Role of Customer Service in Brokerage Success
@richie | Apr 16, 2024

The Role of Customer Service in Brokerage Success

The Role of Customer Service in Brokerage Success

Expanding Your Brokerage Across Borders
@richie | Apr 3, 2024

Expanding Your Brokerage Across Borders

Unlocking International Opportunities: Expanding Your Brokerage Across Borders

AI in SaaS Management
@richie | Apr 9, 2024

AI in SaaS Management

Automating Operations: AI and Machine Learning in SaaS Management

The Evolution of Customer Service in SaaS
@richie | Apr 18, 2024

The Evolution of Customer Service in SaaS

The Evolution of Customer Service in SaaS: From Reactive to Proactive

White-Label Solutions for B2B Payment Processors
@richie | Apr 9, 2024

White-Label Solutions for B2B Payment Processors

The Advantages of White-Label Solutions for B2B Payment Processors

Strategies for Expanding Your SaaS Solution into New Markets
@richie | Apr 9, 2024

Strategies for Expanding Your SaaS Solution into New Markets

Strategies for Expanding Your SaaS Solution into New Markets

 Financial Planning for MCA Brokers
@richie | Apr 10, 2024

Financial Planning for MCA Brokers

Financial Planning for MCA Brokers: Securing Your Future

Understanding Economic Indicators for MCA Decision Making
@richie | Apr 11, 2024

Understanding Economic Indicators for MCA Decision Making

Understanding Economic Indicators: Insights for Informed Decision Making

Enhancing SaaS with Third-Party Integrations
@richie | Apr 19, 2024

Enhancing SaaS with Third-Party Integrations

Enhancing SaaS Product Offerings with Third-Party Integrations

Embedded Lending Guide for B2B SaaS Platforms
@richie | Apr 23, 2024

Embedded Lending Guide for B2B SaaS Platforms

A Comprehensive Guide to Underwriting in Embedded Lending for B2B SaaS Platforms

How to Write a Business Plan
@richie | May 8, 2024

How to Write a Business Plan

Business Plan: The Road Map to Success

Richie 7.08 is Here!
@richie | Apr 25, 2024

Richie 7.08 is Here!

Richie AI Unveils Revolutionary Updates with Richie 7.08

MCA Techniques for Closing Deals
@richie | May 1, 2024

MCA Techniques for Closing Deals

The Psychology of Sales: Techniques for Closing Deals

Business Plan Checklist
@richie | May 9, 2024

Business Plan Checklist

Business Plan Checklist

Identifying High-Potential Clients in MCA
@richie | May 6, 2024

Identifying High-Potential Clients in MCA

Uncovering Hidden Gems: Identifying High-Potential Clients

MCA Marketing Tactics to Attract Prospective Merchants
@richie | May 15, 2024

MCA Marketing Tactics to Attract Prospective Merchants

MCA Marketing Tactics to Attract Prospective Merchants

 The Role of Embedded Lending in Improving B2B SaaS Cash Flow
@richie | May 20, 2024

The Role of Embedded Lending in Improving B2B SaaS Cash Flow

The Role of Embedded Lending in Improving B2B SaaS Cash Flow

In-Depth Loan Product Handbook for MCA brokers
@richie | Jun 6, 2024

In-Depth Loan Product Handbook for MCA brokers

In-Depth Loan Product Handbook for MCA brokers

Optimizing Conversion Rates: A/B Testing Strategies for SaaS Websites
@richie | Jun 11, 2024

Optimizing Conversion Rates: A/B Testing Strategies for SaaS Websites

Optimizing Conversion Rates: A/B Testing Strategies for SaaS Websites

SendGrid and Email Deliverability
@richie | May 15, 2023

SendGrid and Email Deliverability

How to connect your own SendGrid API Key to Richie AI? How to fix email deliverability problems?

Identifying High-Potential Clients in MCA
@richie | Jun 17, 2024

Identifying High-Potential Clients in MCA

Identifying High-Potential Clients in MCA

Predictive Analytics in Loan Underwriting
@richie | Jun 21, 2024

Predictive Analytics in Loan Underwriting

Leveraging Predictive Analytics in Loan Underwriting

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