“Change is inevitable, Growth is optional” - John C. Maxwell
A market downturn may mean tighter budgets for some companies, it also presents an opportunity to reevaluate strategies and focus on growth. It is no secret that the current market conditions are forcing B2B and SaaS companies to reassess their budgets and adjust their growth projections. In fact, leading venture capital firms such as Sequoia, a16z, or Y Combinator have publicly recommended that startups should extend their runway by consolidating costs and investing in revenue growth. The bottom line is that capital was "free" a few months ago, but now is expensive.
We have witnessed a recent trend where companies are shifting their investment from marketing activities towards outbound efforts and the reasons are clear: predictability, buying intent, relevance, and funnel optimization.
I predict a significant pullback in paid spend in favor of low CAC strategies (Outbound, SEO).— guillaume cabane (@guillaumecabane) May 6, 2022
Those with a strong mix towards such channels are poised to win as their competitors try to catch up.
Funnel optimization provides a way for companies to make the most of their limited resources by laser-focusing their outreach efforts on potential customers who are most likely to convert. By taking advantage of these opportunities, companies can ensure that they are well-positioned for long-term success.
In this post, I'd like to share 5 actionable tips to maximize revenue growth during a market downturn.
1. Focus on predictable revenue growth
The recent privacy updates by Apple and Facebook have caused marketing ROIs to plummet. Now more than ever is time for you to invest in predictability. Outbound is predictable! Research and truly understand your customer base so you can create your ideal customer profile. Uncover their main pain points and focus on crafting relevant multichannel sequences. Learn and Repeat! Outbound will help you build a strong foundation for future growth.
2. Stay ahead of the game with buying intent
Next, focus on buying intent. In a market downturn a certain percentage of your prospects might be reluctant to invest. Your goal is to find the ones who are currently looking for your solution. Make sure that you are targeting buyers who are actually in the market for your product (or service). This will help you funnel your efforts and maximize your chances of success. You can find here 6 Buying Intent Signals To Optimize Your Outbound Sales Process.
3. Listen to your customers
Talk to your customers and listen carefully to what they have to say! Did the current market conditions bring about new challenges for them? Gather customer feedback and learn from it. Use this information to refine the copy you use to attract new prospects and to refine your ideal customer profile.
4. Optimize your funnel
Are you currently getting the most out of your sales funnel? Are you getting the most out of your sales team? Are you providing all of your leads with the most relevant and targeted approach? Now is the right time to review your funnel and make adjustments. Improving small parts of your sales funnel will compound and yield.
5. Keep iterating and learning
Growth does not just happen - it is engineered! Run monthly and weekly growth experiments and learn from them. Focus on the task at hand and persevere. Only a team with perfect alignment can succeed. You will come out ahead if your iteration speed is faster than the rate of market innovation.
“Most of the important things in the world have been accomplished by people who have kept on trying when there seemed to be no hope at all.” - Dale Carnegie
Gartner recently reported that SaaS spend will increase by 20% in 2023. Challenges can be turned into opportunities. Companies who adopt a growth mindset during challenging times will set themselves up for long-term success.