Navigating SaaS growth between startup and scale-up with Tom Randle @Geckoboard

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 #48, Anna Nadeina talks with Tom, CEO of Geckoboard, a tool for building and sharing real-time KPI dashboards.

As CEO, Tom has had to grapple with some of the key challenges facing Geckoboard’s growth, particularly around its product and market strategies. The company had long positioned itself as a horizontal product, catering to a broad range of customers with different needs. However, Tom and his team eventually realized that this approach was not sustainable.

“We were maybe in denial for quite a long time about our ability to serve and be a horizontal product like that,” Tom admits. “The problem is, as soon as people want data, as soon as you’re being a KPI dashboard product, as soon as they want that, you can’t just go thin, because unless you’re able to produce all the metrics they care about and they’re super accurate, then the product isn’t good enough at that point.”

This realization led Geckoboard to narrow its focus and hone in on its ideal customer profile (ICP). “When you narrow it down in terms of who your ICP is,” Tom explains, “all of a sudden you think, ‘Oh, wow, actually, the pricing isn’t right here.'” The company’s pricing had been significantly lower than what customers were expecting, leading to missed opportunities.

Alongside this pricing adjustment, Geckoboard also recognized the need to introduce a more hands-on sales approach, rather than relying solely on self-serve. “We had this conversation with a customer going, ‘You know, your pricing is unsettling,'” Tom recounts. “They’d gone to their manager with a proposal to adopt us, and the manager had gone, ‘Oh, it’s that per per seat, so like per agent they have in HubSpot or whatever,’ and they were like, ‘No, it’s per month,’ and it’s like, ‘No, it’s per year.’ So we’re like, at least two if not three orders of magnitude cheaper than was expected there.”

This realization led Geckoboard to experiment with a sales function, though their initial attempts had limited success. “We had a couple of big deals, big, big names come in and wanting all sorts of kind of Enterprise sales type help where we would kind of muddle by with the CS team or getting me on the call or our VP product on the call,” Tom says. “And you go through that, they’re really happy, we solve exactly the problem they want, but because of our pricing, they were able to subscribe for like $100 a month or something. This isn’t good.”

Geckoboard’s current approach is to focus on an inside sales model, where the support team helps guide customers through the evaluation and onboarding process. “We’re doing it through our support team and we’re primarily focusing on inside, so people who have come in, they’ve started evaluating Geckoboard, and then we just help them at that point,” Tom explains. “Look, let us understand, help us understand what you want to do, and we’ll sort it out for you.”

The role of video content in SaaS growth

One of the ways Geckoboard has sought to educate and engage its customers is through its extensive video content library on YouTube. With over 200,000 views on videos covering topics like dashboard design tips, the company has recognized the power of visual content to reach and support its target audience.

The majority of this video content was created by Geckoboard’s former head of marketing, who had a vision for using YouTube as an SEO-driven acquisition channel. “He had an interest in it, he had an aptitude for being able to be good in front of the camera and put together interesting videos, and he produced them entirely himself, pretty much,” Tom says.

While the company has experimented with using YouTube influencers to create content, Tom admits that the results have been limited. “We’ve outsourced a few things, but struggled,” he says. “I think not because we weren’t doing it well, but I think the content that was maybe more engaging or more kind of casually interesting wasn’t necessarily targeting either the right part in the funnel or the right buyer type.”

Moving forward, Geckoboard plans to focus more on LinkedIn as its primary video content platform, with YouTube serving as a secondary channel. “I do firmly believe in video content,” Tom says. “I think it’s really great, but I think we’ll focus more on LinkedIn primarily and then shorter form, and then maybe have YouTube as the secondary thing.”

Scaling the company: lessons in hiring and processes

As Geckoboard has grown from a startup to a more established scale-up, Tom has had to navigate the challenges of building the right team and implementing the necessary processes to support the company’s growth.

One of the key lessons Tom has learned is the importance of hiring the right people, at the right time. “I think we were a bit slow when things weren’t working out to deal with that,” he admits. “You can’t start sliding, you’ve got to deal with it, because the amount of time that goes into kind of dealing with the after-effects of that or managing that is colossal.”

Tom also recognizes that the company’s hiring approach has evolved over time, moving from a more generalist mindset to a greater focus on specialized expertise. “I think we hired people that were too specific too soon,” he says. “We’d kind of got an idea over new things we wanted to be doing, but actually those things didn’t have necessary stability yet or weren’t proven out yet, and I think we then struggled a bit because there wasn’t that flexibility in some of the teams that we needed.”

In terms of processes, Geckoboard has worked to establish a strong operational foundation from an early stage, with regular planning meetings, all-hands sessions, and clear responsibilities. “I don’t think it took, you know, if I joined back in 2014, I would say that within like two years of that, we were pretty set up in terms of, you know, having planning meetings, setting KPIs, all this, having all-hands, having people responsible for those things, you know, being clear about what our values were,” Tom explains.

However, Tom acknowledges that the company has faced challenges in striking the right balance between strategic and operational responsibilities as it has grown. “I think the harder thing for us is that you at that size when you’re kind of 30 to 40 people big, I think can be challenging in that you still have like your managers are still doing a lot of the day-to-day and kind of having to wear two hats or you’ve got very strategic kind of setting the company strategy, the kind of all cultural piece and all that kind of thing, but then you’ve also got like quite granular in the weeds.”

Lessons learned and advice for SaaS founders

Throughout his journey at Geckoboard, Tom has accumulated a wealth of valuable lessons and insights that he is eager to share with other SaaS founders and leaders.

One of the key lessons he emphasizes is the importance of having a clear vision and conviction, rather than simply reacting to customer feedback. “I think I was always so I grew up on the Lean Startup book, and you know, my career, and I always felt like that meant that you should kind of go where you’re being pulled in terms of what how customers are reacting to what you put out there and stuff,” Tom says. “But you really can’t work like that forever. You have to hold true to a vision and go, ‘Look, I believe that there’s something in this,’ and you need to take the information that’s coming back to you and learn from that, but if you’re always kind of giving up on the first attempt or listening to what you’re hearing too literally, then you won’t get anywhere.”

Another valuable lesson Tom has learned is the power of coaching and networking. “I found it extraordinary valuable,” he says of his experience with a personal coach. “It’s different to being having a manager. The coach is out there entirely for you, and they push you and make you scratch your mindset a little bit if there’s something I’m uncomfortable about or, but it’s really good kind of time to self-reflect and hold yourself accountable.”

Additionally, Tom emphasizes the importance of not being afraid to make difficult decisions, even if they go against the grain. “I think we were a bit slow when things weren’t working out to deal with that,” he admits. “You can’t start sliding, you’ve got to deal with it, because the amount of time that goes into kind of dealing with the after-effects of that or managing that is colossal.”

As Geckoboard continues to navigate the ever-evolving landscape of SaaS, Tom’s insights and experiences serve as a valuable roadmap for other founders and leaders looking to scale their own businesses. By embracing a clear vision, investing in personal and professional development, and making tough decisions when necessary, SaaS companies can position themselves for long-term success.

Key takeaways:

• Transitioning from a product-focused role to CEO requires a careful balance of maintaining continuity and introducing necessary changes.
• Narrowing the focus on an ideal customer profile and adjusting pricing and sales strategies can be critical for SaaS growth.
• Video content can be a powerful tool for educating and engaging customers, but it requires a strategic approach to target the right audience.
• Hiring the right people at the right time and establishing effective processes are essential for scaling a SaaS company.
• Maintaining a clear vision, seeking external guidance, and making tough decisions are key lessons for SaaS founders and leaders.