"We all need more hackers on our team. Marketing hackers, sales hackers, product hackers. We lost too much of that. People that want to do the work because they enjoy the work." @searchbrat @zapier @kippbodnar @HubSpot @jasonlk pic.twitter.com/dUudpe9s2Q
— SaaStr (@saastr) April 16, 2024
HubSpot and Zapier’s CMO had us on their “Marketing Against the Grain” pod / videocast. We went pretty deep on:
- The real role of AI in marketing today
- Does everyone just want to be a strategist now?
- Will AI let ICs do more, with fewer managers?
And so much more! Give it a listen / watch!
AI in Sales and Marketing
- AI is disrupting sales and marketing, particularly in support and SDR/BDR functions, due to the shortage of skilled workers and the potential for increased efficiency and cost savings.
- AI-powered tools can automate many tasks, flattening organizational structures and allowing individual contributors to accomplish more with the help of AI agents.
- However, human oversight is still necessary to ensure accuracy and handle complex situations.
Challenges in AI Implementation
- Companies experimenting with AI in customer support face challenges due to the limitations of current AI technology.
- The current business model for software companies involves spending a significant portion of revenue on sales, regardless of available tools and automation.
- Efficiency gained from AI may not necessarily lead to cost savings, as companies tend to reinvest in higher-value areas.
The Role of AI in Marketing
- AI can enhance the customer experience by allowing marketers to own more of the customer journey and provide real-time product demonstrations.
- AI-driven marketing automation solutions tailored to specific industries can revolutionize marketing for small businesses lacking dedicated growth and marketing departments.
- Automation is more important than AI for businesses, especially in the current labor shortage.
Marketing Strategies and Best Practices
- Successful marketing strategies are not simply replicable tactics but a combination of factors including timing and luck.
- Founders should let marketers do what they’re good at and backfill their weaknesses, rather than trying to control every aspect of marketing.
- Word-of-mouth marketing is the most effective channel for acquiring customers, followed by Google and the company blog.
- Founders should support their hires’ strengths rather than undermining them, even if they personally don’t believe in the strategy.
- Marketers should focus on the acquisition channels they’re best at, even if it’s not the perfect fit for the situation.
- Companies that are mainly outbound-driven should be cautious when hiring a head of sales with no outbound experience.
- Bad hires are always the fault of the founder or hiring manager, not the hire.
Expectations and Performance Metrics
- For every functional area, employees should show improvement within one sales cycle or they likely never will.
- Sales leaders should be able to improve lead conversion rates by at least 20% within one sales cycle.
- Marketing teams can make a 20% improvement in customer NPS or customer success within one quarter.
- Founders should encourage honesty and feedback from customers, even if it’s negative.
Building a Brand
- Building a brand is essential for long-term success. Once a double-digit percentage of the core customer base has heard of the company, it’s time to invest in brand marketing.
- Brand marketing helps sustain word-of-mouth growth, which is a key driver of customer acquisition.
- In the SaaS industry, 80% of buyers choose companies they’ve heard of, making brand recognition a critical factor in revenue growth.
- Focus on creating clever and affordable marketing ideas that grab attention within your target audience.
- Consistency is key in marketing. Do things every week, not just when you have time.
Product Marketing and Early-Stage Priorities
- Product marketing is not a priority for most startups. Founders should focus on simple messaging, effective emails, and valuable webinars before worrying about product marketing.
- The first head of marketing should have a title that indicates a focus on demand generation or growth, rather than product marketing, corporate marketing, communications, or branding.
- In the early stages of a startup, skills in distribution and acquisition are more important than product marketing or communications.
- A truly differentiated product with strong product-market fit may not need extensive communications or product marketing efforts, as word-of-mouth and simplicity can generate enough interest.
Adapting to Economic Challenges
- The current economic climate is not necessarily a downturn, but rather a “side turn,” and many founders are using it as an excuse for not innovating or adapting their products.
- Founders should critically assess whether their product still has the same market fit as before, and if not, they should focus on improving the product rather than blaming external factors.
The post The State of Startup Marketing in 2024 with CMOs of HubSpot and Zapier appeared first on SaaStr.
via https://www.aiupnow.com
Jason Lemkin, Khareem Sudlow
