7 Marketing Lessons We Learned From Running Software Companies | Ep. #723

In episode #723, Eric and Neil count out the 7 lessons they learned from running software companies. Tune in to hear what lessons apply to your business.

TIME-STAMPED SHOW NOTES:

[00:27] Today’s Topic: 7 Marketing Lessons We Learned From Running Software Companies
[00:43] A lot of the lessons Eric and Neil learned, could work for ecommerce and other internet-based businesses.
[01:05] #1: It’s not all about the conversion plan. Optimize for lifetime value.
[01:25] People typically pay for software on a month-to-month or annual basis and people often have to renew plans; this is a consistent revenue stream.
[02:17] #2: It’s all about on-boarding.
[02:40] First impressions matter and that applies to software, as well.
[02:53] #3: You end up losing about 5% of your revenue because user’s credit card numbers expire.
[03:08] To fix this, companies like GoDaddy sign up for a service called Visa and Mastercard Updater; Visa and Mastercard will automatically update user’s credit card details for a small fee.
[03:50] #4: Use the “Jobs to be done” framework.
[04:40] Set aside time for customer development.
[04:48] #5: You only have one shot with customers. If someone uses your product and doesn’t like it, they will never come back.
[05:07] First opinions tend to stick in the software world.
[05:42] BuzzSumo and AHREFS did well because they created exceptional products.
[06:30] #6: Get your pricing right!
[07:03] Everyone is going upmarket. Charge for the value you think you are delivering.
[07:23] #7: Pay attention to market trends and conditions.
[07:30] KissMetrics was getting trounced by a competitor and didn’t adapt quickly enough.
[08:01] That’s it for today!
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