Choosing the right ICP for SaaS with Niclas Lilja @Younium

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 #8, Anna Nadeina talks with Niclas, co-founder of Younium, the subscription management hub for B2B companies.

Introduction

Nicholas has been working in the SaaS industry for the past 20 years, specializing in CRM, ERP, and financial systems. With his co-founders, they noticed a gap in the market for a subscription management solution specifically tailored for B2B companies. They realized that existing tools were designed for more straightforward scenarios and didn’t cater to the unique needs of advanced B2B businesses. 

The team drew upon their own experiences in dealing with complex contracts, multi-year deals, and other nuances of B2B transactions. These real-life experiences inspired them to create Younium, a subscription management hub that focuses on serving the specific needs of advanced B2B companies.

The Importance of Staying True to Your Ideal Customer Profile

Younium’s success can be attributed to their commitment to staying true to their ideal customer profile (ICP). By focusing on serving advanced B2B businesses, they are able to provide tailored solutions for their customers’ specific needs. This niche approach sets them apart from other companies in the market.

While some companies may be tempted to stray away from their ICP to pursue larger deals or different customer profiles, Younium has remained steadfast in their commitment. They recognize the value of serving their target market effectively and understand that catering to a specific niche can lead to long-term success.

The Benefits of a Sales-Driven Approach

Younium has adopted a sales-driven approach, prioritizing direct communication and feedback loops with their potential customers. This approach allows them to gather valuable insights and build relationships with their target market. By engaging in personal interactions, they can better understand their customers’ needs and tailor their solutions accordingly.

While some companies may opt for a product-led growth (PLG) approach, Younium believes that their sales-driven approach aligns better with the complex nature of their product and target market. 

Navigating Macroeconomic Challenges

Like many companies, Yium experienced the impact of macroeconomic challenges, particularly during the peak of the COVID-19 pandemic. They witnessed a drop in sales and win rates, as companies became more cautious about making decisions. However, they remained resilient and adapted to the changing market conditions.

Younium’s focus on providing value and maintaining strong relationships with their customers helped them weather the storm. They emphasized the importance of having control over subscription management, especially during challenging times when cost optimization is crucial.

Building Relationships and Qualifying Leads

Building relationships and qualifying leads is a critical aspect of Younium’s sales process. As they target larger enterprises, it’s essential to establish trust and demonstrate their expertise in subscription management.

Younium has invested in building a knowledgeable and empathetic sales team that can relate to their customers’ unique challenges. By understanding their customers’ needs and providing tailored solutions, Yium can differentiate themselves in the market.

They also emphasize the importance of knowledge sharing within the organization. Younium encourages their team members to contribute to a shared documentation platform, ensuring that valuable insights and learnings are accessible to everyone. This collaborative approach helps them stay aligned and continuously improve their sales processes.

Building Towards Profitability and Operational Efficiency

Younium’s journey towards profitability involves a balanced approach to growth and cost management. They have identified their growth levers, such as geographical expansion within their target market, and have remained focused on executing their strategy.

While cost-cutting measures can be effective in the short term, Yium places more emphasis on performance improvement and optimizing their existing resources. They prioritize transparency in budgeting and planning, ensuring everyone in the organization is aligned and understands the company’s goals and financials.

Younium recognizes the importance of keeping their operations simple and efficient, from accounting practices to documentation management. By streamlining their processes, they can allocate resources effectively and maintain a clear focus on their customers and growth objectives.