On SaaS State of Affairs: Navigating the Big Freeze
Results of a week diving deep into product management value for SaaS (and how to stay warm)
Hey there, SaaS pros! Today we're tackling the elephant in the room: the current deep freeze in our industry. The business climate and the air conditioning lobby are conspiring against me: it’s summer and yet I’m covered in blankets here at Camp David in Industry City (otherwise a beautiful coworking space). But just like Ingrid Michaelson, when we are chilly we will take our sweaters and march on! Let’s explore some strategies to beat the cold and keep your SaaS business thriving. Grab your favorite hot beverage, and let's dive in!
SaaS: Winter Has Come
As someone who measures life in summers, I'm reluctant to admit this, but here goes: our industry feels like one big problem space right now. Brace yourselves for some chilly facts:
Investment has taken a nosedive: from $47.2B in 2021 to $17.2B in 2023, with 2024 trending even lower. (Source here)
Industry growth has cooled to less than half of its 2021 level (source here):
Meanwhile, the SaaS landscape is becoming more crowded with more companies vying for the same customers, from 25,000 companies in 2021 to 30,800 in 2024.
With more players in the game and fewer resources to go around, it’s time to sharpen our strategies and focus on what really matters!
Innovate your way out of this slump!
Now is not the time for complacency or inaction. We need to harness our collective creativity and drive. Here are some actionable ideas to spark innovation within your teams:
Strategy Sprints: Collaborate to define a clear product strategy that everyone can rally behind.
Growth Workshops: Create a competitive roadmap that outlines how to navigate these challenging waters.
Design Sprints: Rapidly prototype and test new ideas to keep your offerings fresh and relevant.
Align Your Development Teams with the Right Product Metrics
Your teams need to be aligned with clear, actionable goals. It’s essential to translate business objectives into specific product metrics that can drive performance. Business objectives such as revenue lagging. Focus on identifying product metrics that serve as leading indicators of success. Then let them move the needle on those product metrics and trace it back to revenue. It takes time but you cannot jerk your team by constantly reacting to revenue.
Boost Your Velocity
Encourage your product, UX, and engineering teams to learn and iterate quickly. Create a supportive environment where they can experiment without fear of failure. It’s tempting to pivot constantly in a challenging market, but your role is to protect their focus and ensure they stick to the initiatives identified in your strategy sessions.
Get Creative with Resources
Don’t overlook the potential of nearshore and offshore partners. In today’s landscape, being resourceful is key. Finding the right partners can provide the support you need to keep moving forward without breaking the bank.
Prioritize Wellness for Peak Performance
Stress can take a toll on productivity and creativity. It’s crucial to invest in your and your team’s well-being. For me, breathwork has been transformative. I recently started a breathwork club at Camp David, and it’s been a game-changer. It gives me a bit of a peer pressure to practice and practices make me so much more productive. It helps if the entire team has a dedicated wellness time and leadership example can make a huge difference. It might be counter-intuitive to invest time into wellness during such challenging time. But we need ourselves to stay sharp like never before.
Here’s a simple breathwork exercise from Othership that you can try:
Tune In to the Power of Music
Music is my go-to tool for lifting my spirits. I love discovering instrumental tracks that energize and inspire me without the distraction of lyrics. Each week, I’ll share my current favorites with you!
Today’s pick comes from my son, Kazimir, who has an impressive taste in music.
Wrapping Up (In a Cozy Blanket)
Remember, fellow SaaS-tronauts, even in the coldest markets, there's always room for growth and innovation. Stay warm, stay creative, and keep breathing (preferably in a pattern that increases your energy and focus).
How I Can Help
I can help you with all of the above without breaking the bank.
I offer fractional product leadership and innovation facilitation, coupled with UX and technical support from my trusted partners, all at a fraction of the cost of a mid-tier product manager.
Until next time, may your metrics be ever-rising!