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Is there Trouble Ahead for SaaS Companies? | Vol 97

Free Content

Welcome to Volume 97

Let’s jump into the good stuff. 

  • Is there Trouble Ahead for B2B SaaS Companies?
  • What HubSpot’s 2022 Marketing Trends Report Reveal 

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STATE OF B2B SAAS

Is There Trouble Ahead For B2B SaaS Companies?

If you’ve been following the news closely, you’ll have noticed that talks of a looming recession are getting louder. Interest rates are rising, more investors are unwilling to part with their money, and more tech companies are laying off workers. 

Overall, the signs aren’t looking great, especially for the B2B SaaS industry, which begs the question, “Are these early warning signs for the industry, and should companies be worried about a brewing storm?”

Paddle’s Chief Strategy Officer Patrick Campbell shared some useful insights on the state of B2B software after analyzing over 23,000 subscriptions and SaaS companies

The analysis revealed that although B2B SaaS companies still close new deals, existing customers are canceling or downgrading subscriptions to cut unnecessary spending and save money where possible. 

The chart below shows how sales are almost static, churn is on the rise, and monthly growth rates are decreasing:

Obviously, if a recession eventually hits, many SaaS companies will see their customer base and revenue decline consistently. You can stay ahead of the curve by doing these:

  • Track past and previous expenses, including paid and unpaid expenses, to ensure everything aligns with your budget and company policies
  • Measure profitability. Campbell advises that bootstrapped companies should have at least a 10% buffer while venture-backed firms should have an 18-24 month runway. 
  • Play the long game. Reevaluate strategies, proposals, and projects to identify those that are irrelevant to your business’s long-term goals. 
  • Focus on improving and maximizing customer lifetime value.

These tips will help you weather the brewing storm, build stronger customer relationships, and drive overall business growth. You can read the full article here


B2B REPORT

What HubSpot’s 2022 Marketing Trends Report Reveals

Every year, HubSpot gathers data on all things marketing. 

This year, the team gathered data from 1,600+ B2B and B2C marketers from different global industries to uncover effective marketing channels, tactics, and trends. Here are some insights I found interesting while going over the report:

Influencer marketing is the #1 emerging marketing trend in 2022

It’s no surprise that influencer marketing will lead the way in 2022, especially because the global industry is predicted to surpass $16B this year. More brands are leveraging the expertise and authority of niche influencers’ to expand their organic reach and boost conversions. Short-form video and a mobile-friendly website design are effective tools for marketers as mobile users outnumber desktop users.

Here’s another insight from the report:

Social media is the top channel for marketers in 2022.

It shouldn’t be surprising as social media has an insane number of users across different platforms. Hootsuite found the top six social media channels to be these:

Notice how each channel attracts more than 1 billion users. Most brands leverage these channels to create brand awareness, nurture prospects, convert prospects into customers, and encourage customer loyalty. The report also reveals the different social content investments these brands make, including Twitter Spaces, YouTube Shorts, Instagram Live Shopping, and more. 

This report has so many more insights that will help you hit your marketing goals before the year is up. You can read the full report here.

 


NEWS OF THE WEEK YOU SHOULD KNOW:

Twitter takes a page out of Facebook’s playbook with its Location Spotlight feature. This feature allows businesses to add store hours, addresses, Google Map with directions, and a single tap option for prospects/customers to contact the company.

Only 4% of creators create content full-time and earn money from it. But Shopify is changing that with its new Collab feature, giving creators a way to earn on its platform.

LinkedIn rolls out new features to make it easier for marketers and creators to share more visual content on its platform. 

Reddit is launching its developer platform—a suite of developer tools and resources to enable and empower developers to improve Redditors’ experience on the platform. 

TikTok is launching a new way for brands to advertise on its platform with its Shopping Ad feature. The commerce ad suite has three formats in beta mode right now: video shopping ads, catalog listing ads, and live shopping ads.


BRAIN FOOD OF THE WEEK:

Failing at something creates a bad feeling. It’s especially worse if you are in an environment where failure is an abomination. In such an environment, you let failure weigh you down so much that it becomes your identity.

One thing I have learned from working at Foundation and learning from great mentors is this: Failure is an event, not your identity.

When a child tries to transition from crawling to walking, notice how they don’t start walking immediately after the first try. They fall hard sometimes. Most times, they cry after falling, but they get back up and try again. 

We should take a page out of their playbook. That means treating failure as feedback. Failure should be a reminder that you’re missing something, and you need to go back to the drawing board to figure out what that is. 

If we choose to think about failure this way, then we’ll stop beating ourselves up or having unnecessarily high expectations of ourselves. That’s how real growth happens—when you treat failure as feedback and refuse to make it your identity.

Failure is just a single event you can rise from. We should never let it hold us back. We’re on a growth journey and can only succeed if we learn what we’re doing wrong and retrace our steps. Let’s choose progress over perfection.


TWITTER THREAD OF THE WEEK:

10 lessons to help you dominate your niche by Gianni Cara


NICE FINDS YOU SHOULD BINGE:


WHAT WE’RE WIRED INTO THIS WEEK 🎧:

Work From Home Playlist

 


This charcuterie board of insights is brought to you by me, Jessica Tee O. ✌!

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