Showing posts with label freeagent central. Show all posts
Showing posts with label freeagent central. Show all posts

Sunday, November 25, 2012

The 3rd DO for SaaS startups – Create an awesome product

With some delay I'd like to continue my little series:

3rd DO for SaaS startups
Create an awesome product

This one is a little tricky. Firstly because it feels like I'm just stating the obvious – who doesn't want to create an awesome product? Secondly because it's hard to offer a lot of useful advice in a blog post on a topic which shelves of books have been written about. But a series on the DOs for SaaS startups would be incomplete without at least one DO about the product I and will focus on a few aspects that I personally feel strongly about.

As mentioned before, I'm going to assume that you want to build a modern SaaS solution for the "Fortune 5,000,000". This most likely means that you won't have a field sales force and that you're going to use a low-touch online sales model instead. What implications does this have for your product?

The entire user experience – from the first time the user visits your site to the moment he signs up for a free trial, through the onboarding and the exploration of the product and further on – needs to be completely frictionless. It should be designed with the same mindset that designers of online shops have, e.g. when they design a checkout process: Any little thing that doesn't work flawlessly, anything that may make the user doubt can kill a few conversion percentage points.

If your product is complex, and chances are that your product will have significant complexity at least from a new user's point of view, hide a big part of the complexity from the new user and give him or her a way to gradually discover it. When you have the user's attention, you have to fight to keep it against a million possible distractions. Make the learning curve as smooth as possible and give the user as much gratification along the way as possible. The masters of this discipline are designers of games that teach the game to new users in many small steps, meticulously making sure that it never gets too difficult nor boring, giving the user lots of little gratifications along the way.

Speaking about games, I think this is how product discovery looked like in the old enterprise software world:



Poor Mario is faced with an insurmountable barrier, and it takes the vendor's sales and support team (those little guys on the right) to pull him up that mountain, which means lots of money and time spent on sales, setup and training – and a lot of time and reasons for Mario to give up before reaching the flag.

Contrast that with new world of self-service, low-touch sales SaaS:



The big barrier has been torn down, and the way to the required understanding of the product is paved with several "aha" moments (those little trampolines which help Mario jump to the next step). *

Online shops, games, instant gratification, gradual discovery – by now you can probably guess the bigger theme that I'm heading at: The consumerization of enterprise software. The consumerization of enterprise software means that the way enterprises buy software is changing. Keep that in mind – you're not developing a product for IT professionals (unless you are offering a product to the IT team) who are super tech savvy and will make a choice based on a feature matrix. Your product will be used by marketing, sales, HR, support or finance people or founders or managers of small businesses – whatever the case may be – and your product must be easy enough to use so that a typical member of your target group can come to your site, start a trial and see the value of your product with little to no intervention from your company.


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* Thanks to Roan Lavery of FreeAgent, whose presentation at out recent SaaS Founder Meetup was the inspiration for the images above.

Sunday, December 26, 2010

Portfolio Update Part 2

Continuing my little 2010 portfolio review (here's part 1), the next stop after San Francisco (Zendesk), Vancouver (Clio) and Berlin (Momox) is Edinburgh, home of FreeAgent Central. By launching a flurry of innovative new features such as multi-currency support or project profitability analysis, in 2010 the FreeAgent team has shown again who's setting the bar for online accounting. An incredibly powerful yet simple-to-use application is what 1000s of users love us for (as well as the press), and is the reason why we've won a Software Satisfaction Award for the second year. And there's more to come. 2010 has been a big year for the company in other ways as well: In March we announced that we've taken a minority investment from and entered into a strategic partnership with IRIS, the leading supplier of software for accountancy practices in the UK with over 14,000 practice customers (50% market share!). Kudos and a huge thank you go to Ed, Roan, Olly and everyone else at FreeAgent Central.

The next portfolio company takes me to Tokyo. Konnichi wa, myGengo. myGengo is a pretty recent investment of mine which I've done about half a year ago together with Dave McClure and other angel investors. myGengo is a crowdsourcing marketplace for human translations – think Amazon Mechanical Turk for translations. myGengo connects people who need translations with qualified translators in a way that's much more efficient than it used to be and thus allows it to offer high-quality translations done by certified translators at affordable prices. Thanks to this very clever idea, extremely strong execution and lots of innovations (like an iPhone translation service and a very smart API), as well as a rapidly growing list of language pairs, my Gengo has more than doubled translation volume and revenues in every quarter this year. Even so, the young startup is of course just scratching the surface of the huge, multi-billion dollar translation industry, which makes me extremely excited about the opportunity ahead. Thank you very much and doumo arigatou gozaimasu, Rob and Matt.