So two of the great leaders in SMB SaaS, Shopify for e-commerce, and HubSpot for sales, marketing and more, are going more upmarket:
- HubSpot 100+ seat deals are up 55%
- Shopify now gets 31% of its revenue from “Plus” or its bigger brands and more enterprise product
And yet … they are also both going more SMB as well!
- HubSpot’s ACV has actually come down a tiny bit to $11,225 as its also pushes its new entry-level and single-seat products
- Shopify’s smaller merchants have grown so quickly, that its enterprise revenue has only gained 1% of the overall pie. 31% now for the bigger customers (plus), vs. 30% a year ago.
So there’s an important take away here. I see so many these days pushing to go more and more enterprise, which generally does work. But also — as part of this, I see folks de-emphasizing their SMB customers.
We have 200+ sponsors at SaaStr, and so many marketers tell us they don’t even want to reach tech, scale-up and start-up buyers anymore. “Enterprise only”.
Make some sense in the short term. But if your roots are SMB, if your SMB customers are happy, and importantly — if they are still growing — heed Shopify and HubSpot. Invest in both. Even if the organization is pulling you to put all your spend into the big names and deals.
Treat your SMBs right, you’ll get more and more of them. Ignore them, and you may well get more enterprise. But maybe to a fault.
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Jason Lemkin, Khareem Sudlow
