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 #5 of season 5, Anna Nadeina talks with Thomas Tauchner, Founder and CEO of Jentis, the most powerful server-side tracking platform.
Thomas Tauchner’s journey begins with a strong foundation in software development. After spending years as a software developer, he joined an online marketing agency around 2010, where he first encountered the beauty of combining technology and data. In 2014, he founded a data analytics agency, which still thrives today.
As GDPR made waves in 2016, Tauchner and his team faced significant data quality issues. The realization of these challenges led them to consider creating a solution. With a team of software developers, they took the bold step to build their own technology, laying the groundwork for Jentis in 2020.
Challenges and Growth of Jentis
Transitioning from an agency model to a product-focused approach was no small feat. Tauchner emphasizes the importance of separating the two worlds. The agency, known as Web Rocket, operates independently from Jentis. Initially, he managed both companies, but soon found a general manager to ensure that Jentis could operate autonomously.
The challenge of switching to a product workflow was significant. Tauchner describes the speed and feedback loops in a startup as vastly different from the slower, consultative nature of agency work. In a startup, immediate market feedback is crucial, and decisions must be made swiftly.
Customer-Centric Approach and Market Adaptation
Jentis’ growth can be attributed to its customer-centric approach. By placing customer needs at the forefront, the team developed technology that directly addresses pain points. Tauchner highlights the importance of understanding the market through the lens of their top clients, which enables them to innovate proactively.
In a rapidly changing landscape, Jentis recognized the need for unique value propositions. The introduction of synthetic users in 2022 was a pivotal development, allowing Jentis to adapt to market demands while maintaining compliance with data privacy regulations.
Market Segmentation: Innovators vs. Early Majority
One of the key insights Tauchner shares is the distinction between innovators and the early majority in market segmentation. Innovators are eager for better data quality and are willing to experiment with new technologies. In contrast, larger companies often implement server-side tracking without a clear use case, merely to keep up with trends.
This distinction impacts Jentis’ sales approach, necessitating tailored messaging and pricing strategies for different market segments. Tauchner notes that understanding customer motivations is essential for effective communication and conversion.
AI Integration and Synthetic Users
The integration of AI into Jentis’ offerings has been a game-changer. Addressing concerns about data privacy, Tauchner explains that their approach to AI focuses on recalibrating data from non-consent users to create synthetic users. This method ensures compliance while enhancing data quality.
However, Tauchner stresses the importance of not using AI for the sake of it. The goal is to add genuine value to the product, which has been achieved through rigorous research and development, including collaboration with mathematicians and data scientists.
Improving Ad Spend and Pricing Strategies
As Jentis continues to evolve, the pricing strategy remains a work in progress. Tauchner emphasizes the need for adaptive pricing models that reflect the value delivered to customers, particularly as they navigate the complexities of the early majority market.
With proof of concept success in improving return on ad spend by 25%, Tauchner is keen to explore how existing customer relationships can inform future pricing strategies. The ultimate aim is to ensure that pricing aligns with the value provided, thereby fostering long-term partnerships.
Sales Process and Customer Engagement
The sales process at Jentis is heavily reliant on customer engagement. Tauchner explains that understanding the customer’s journey and maintaining close relationships post-signature are vital for ensuring product adoption and success.
In a high-touch sales model, the focus is on enabling customers to realize the value of the product. This approach not only mitigates churn but also enhances the overall customer experience.
The Role of Agencies in Sales Strategy
Agencies play a crucial role in Jentis’ sales strategy. Tauchner notes that while agencies may not have dedicated sales departments, they possess invaluable trust with clients. This trust can be leveraged to enhance Jentis’ market presence.
Recognizing the importance of agencies, Jentis is now working on strengthening commercial agreements to better align their offerings with agency capabilities, ensuring a more robust sales framework.
Implementing Processes for Scaling Up
As Jentis prepares for growth, the implementation of processes is critical. Tauchner reflects on the challenges of finding the right balance between structure and agility. Over-structuring too early can hinder progress, while waiting too long can lead to chaos.
Learning from past experiences, the team aims to implement processes that facilitate scalability without sacrificing the speed of execution. This approach is essential for navigating the complexities of a growing organization.
Big Wins and Lessons Learned
Reflecting on significant milestones, Tauchner highlights the importance of adaptability. Closing deals with high-profile clients like the Washington Post and the XX6 Lutz Group marked pivotal moments in Jentis’ journey.
These wins not only validate the technology but also underscore the potential for growth in the U.S. market, which remains a key focus for Jentis moving forward.
Decision-Making Hacks for Teams
In a growing organization, effective decision-making is crucial. Tauchner shares a unique approach involving the use of cards during all-hands meetings to facilitate open discussions and align team members on decisions. Each card has a different meaning, allowing team members to express their level of commitment to proposed decisions.
This method fosters a collaborative environment where everyone feels heard, ultimately leading to more informed and cohesive decision-making processes.
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