How to build a lovable SaaS product with amazing retention with Mehdi Boudoukhane @Cycle

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/ . I’m your host Anna Nadeina, Head of Growth for saas.group.

In episode #19 we talk with Mehdi Boudoukhane, Co-Founder & CEO at Cycle (https://www.cycle.app/), a product feedback system that lets you connect the dots between customer needs and product delivery workflows.

From Engineer to Product Manager

Mehdi Boudoukhane’s journey into product management began when he was an engineer and data scientist. As he asked the “why” question a little too often, his CEO at the time encouraged him to explore product management, a role that would allow him to collaborate with designers and engineers while also engaging with customers. This transition sparked Mehdi’s passion for the intersection of design, technology, and business.

The Inspiration Behind Cycle

Mehdi’s frustration with the available product management tools led him to the idea of Cycle, a product management platform that transforms product feedback into customer engagement. He realized that the key to building trust within an organization was through effective feedback systems – ensuring that everyone could provide feedback seamlessly and that the feedback loop was closed, with customers being informed about the features they had requested.

Mehdi began hacking together early prototypes using tools like Airtable, Notion, and Zapier. However, he soon realized that a more scalable, opinionated solution was needed. This led him to take a trip to San Francisco, where he conducted extensive user research with product managers and leaders, validating that the problem he was trying to solve resonated with the broader product management community.

Finding a Co-Founder and Raising Funds

To turn his idea into a reality, Mehdi connected with the startup studio eFounders, which helped him find a co-founder to work on Cycle full-time. Together, they set out to build a product that would address the challenges Mehdi had experienced as a product manager.

Mehdi’s approach to fundraising was centered on building relationships with investors long before the formal fundraising process. By providing value and demonstrating progress, he was able to secure a $6 million Series A round from a strong list of investors who were already invested in Cycle’s success.

Navigating Cultural Differences and Networking in San Francisco

Mehdi’s experience of transitioning between the French and American startup ecosystems highlighted some key cultural differences. In France, meetings tend to be longer, with more emphasis on personal rapport, while in the US, meetings are more time-efficient and focused on the task at hand. Mehdi also observed that American founders tend to be more optimistic and willing to provide help, while their European counterparts often take a more pessimistic approach, focusing on potential challenges.

Mehdi’s strategy for networking in San Francisco involved making the effort to travel there, leveraging warm introductions, and consistently providing value to the people he met. He made it a point to leave each interaction with the other person feeling more energized, which he believes was a key factor in building meaningful relationships and securing support for Cycle.

Partnerships and Growth Strategies

One of Cycle’s growth strategies has been to focus on integrations and partnerships. Mehdi realized that a significant portion of Cycle’s customers were discovering the product through integrations with tools like Linear and HubSpot. By prioritizing these partnerships and being present on their marketplaces, Cycle was able to tap into a valuable customer acquisition channel.

Mehdi also sees potential in building partnerships with product management consultants, who can become advocates for Cycle and help implement the platform at their client organizations. He believes that the flexibility and adaptability of Cycle’s data model make it an attractive solution for a wide range of product teams, and these partnerships can be a powerful way to reach new customers.

Lessons from Wins, Failures, and Pivots

Mehdi’s biggest win has been the resilience of the Cycle team, which has stuck together through the challenges of building a startup. He is proud of the team’s ability to navigate setbacks and remain committed to the company’s vision.

In terms of failures, Mehdi acknowledges that it took him too long to figure out the right go-to-market strategy for Cycle. He initially tried to pursue a self-serve, freemium model, but realized that this approach did not align with the product’s long sales cycle and need for configuration. Pivoting to a free trial model with a mandatory onboarding call has been a significant improvement for Cycle’s customer acquisition and activation.

Another lesson Mehdi has learned is the importance of being intentional about strategy and sequencing the battles you want to win on the way to your long-term vision. He admits that Cycle initially tried to move too horizontally towards its grand vision, shipping features that were not necessarily differentiating, instead of focusing on the core value proposition first.

Mehdi’s advice to other founders is to be resilient, surround yourself with people who energize you, and be intentional about managing your own energy levels. He believes that the key to success is a team that sticks together long enough to figure things out, even in the face of inevitable failures and setbacks.