When to go PLG in SaaS? with Bethany Stachenfeld @SendSpark

saas.unbound is a podcast for and about founders who are working on scaling inspiring products that people love, brought to you by https://saas.group/, a serial acquirer of B2B SaaS companies.

In episode #45, Anna Nadeina talks with Bethany, Co-founder & CEO at Sendspark, The #1 Platform for Video Selling.

Introduction and Background

Bethany Stachenfeld’s background is rooted in marketing and automation. Before co-founding Sendspark, she worked in various startups where she honed her skills in lead generation and customer acquisition. The idea for Sendspark sprang from a gap in the market for personalized video tools, which are essential for engaging customers effectively. Recognizing the power of video—often yielding two to three times more responses than traditional methods—Bethany and her co-founder set out to create a product that could streamline video messaging in sales and marketing.

Acquiring the First Customers

When launching a new product, acquiring initial customers can be challenging. Bethany and her co-founder leveraged their existing networks to gain traction. They reached out to friends and colleagues in sales and marketing roles, offering them early access to Sendspark in exchange for feedback. This approach allowed them to validate their product idea while building relationships with potential customers.

Building the Ideal Customer Profile

Determining the ideal customer profile (ICP) is crucial for any SaaS company. Bethany emphasized that their target audience includes salespeople, managers, and marketing professionals who seek to automate their video messaging processes. Instead of relying solely on job titles for targeting, they focused on users’ actions and behaviors to identify potential customers. This approach allowed them to pinpoint individuals likely to benefit from Sendspark based on their engagement with other tools and platforms.

Navigating Growth and Funding

As Sendspark began to gain traction, Bethany faced the challenge of balancing growth with sustainability. The onset of the COVID-19 pandemic created a surge in demand for video communication tools, but it also intensified competition. Bethany highlighted the importance of finding investors who aligned with their vision of sustainable growth rather than those pushing for rapid expansion at any cost.

Managing Growth and Runway

Managing the financial runway is critical for startups, especially in volatile markets. Bethany shared that they adopted a cautious approach to spending, focusing on building a strong customer base and refining their product before aggressively scaling. This strategy allowed them to maintain a healthy cash flow while investing in growth initiatives.

Building a Tech Company Without a Developer

Interestingly, Bethany and her co-founder started Sendspark without a dedicated developer on their team. They faced the classic chicken-and-egg dilemma: to grow, they needed customers, but to attract customers, they needed a product. Initially, they built a prototype with the help of a friend, which enabled them to showcase early interest to investors and secure funding to hire a development team.

Building Customer Relationships and Satisfaction

Customer satisfaction is at the core of Sendspark’s mission. Even before hiring a dedicated customer support person, Bethany and her team focused on maintaining strong relationships with users. They utilized personalized video messages to engage with customers, ensuring they felt connected to the brand. This approach not only fostered loyalty but also provided valuable feedback for ongoing product improvements.

The Challenges of Early PLG Adoption

While PLG strategies can drive growth, Bethany cautioned against adopting them too early. Startups must first establish a clear understanding of their value proposition and identify their target customers. Jumping into PLG without this foundation can lead to acquiring the wrong customers and misalignment between product offerings and customer needs. It’s essential to focus on identifying paid customers and understanding the best methods for reaching them.

The Most Loved Feature and Customer Feedback

One of Sendspark’s standout features is its dynamic video capability, allowing users to create personalized videos efficiently. This feature emerged from observing user behavior and feedback, revealing that while customers valued video, they found manual creation exhausting. By enabling users to record one video and personalize it for multiple recipients, Sendspark streamlined the process, making it more sustainable and user-friendly.

Biggest Failure and Learning Experience

Every startup faces challenges, and Bethany shared a significant learning experience from their early days. They struggled with balancing the development of major features while also addressing quick wins and customer feedback. To resolve this, they reorganized their development team to focus on two tracks: one for larger features and another for quick iterations. This change allowed them to respond faster to customer needs while still investing in long-term product development.

The Continuous Journey of Growth and Improvement

Growth is a continuous journey, and Bethany emphasized the importance of incremental progress. Rather than seeking one monumental win, they focused on making small improvements every day. This mindset not only contributed to the overall success of Sendspark but also kept the team motivated and engaged in their work.

The Power of Byproducts in Business

Bethany’s co-founder often speaks about the concept of byproducts in business. This idea revolves around maximizing the value of every initiative by identifying additional benefits that can arise from a single action. For instance, when building integrations with other platforms, they also explore opportunities for co-marketing and outreach to those platforms’ user bases. This strategic thinking helps them leverage their efforts for greater impact.