This week we welcomed PJ Bouten, the co-founder and CEO at Showpad, onto the show to discuss the importance of Aligning Sales and Marketing teams. We begin the discussion by covering exactly why aligning sales and marketing is essential to business performance. We then move the conversation into how a B2B business can go about aligning sales and marketing, what systems are needed, checks in place, and meetings should be scheduled to ensure and encourage sales and marketing work together. PJ shares exactly how Showpad's sales and marketing teams are aligned, the Service Level Agreement (SLA) they have in place, what's included in the SLA, and how Showpad initially wrote up the SLA. PJ and I discuss the important of compensation when it comes to sales and marketing alignment and he shares how Showpad compensates their teams to encourage teamwork across the entire company. We also dig in on the typical friction that existing between sales and marketing and how to break this down for the benefit of the organization. This episode touches on nearly all aspects of aligning sales and marketing and is worth a listen if you are interested in understanding how your B2B business could be better aligned too.
This week we welcomed Scott Buxton, VP of Finance at Datadog, onto the show to discuss Customer Lifetime Value: how to calculate it and how to most effectively use it to manage a SaaS business. In today's episode, Scott touches on his experience using CLTV in his current and past roles, sharing his thoughts on how to best put the metric to work operationally. Customer Lifetime Value (CLTV or CLV) is a critically important concept for subscription businesses of all stripes. It seeks to capture the full value (usually some variant of revenue) that an account will deliver over its lifetime as a customer. In addition to price point (usually included as ARPA, or average revenue per account), the key variable in calculating Customer Lifetime Value is churn. Accurate measurement of the likely time period you will be able to retain an account, in addition to the likelihood / pace of any upsells in the meantime, is the cornerstone of an effective CLTV. Armed with a thoughtfully calibrated Customer Lifetime Value, you can gauge acceptable levels of upfront investment in acquiring customers (CAC), including spend on sales, marketing and customer success. This episode will cover other nuances of CLTV calculation and Scott's own tips on how to turn this conceptual measure into a powerful strategic tool.
Scott currently serves as VP of Finance at Datadog, where he makes active use of CLTV and a range of other SaaS metrics. Datadog is a platform for cloud infrastructure monitoring. Before that, Scott spent nearly 3 years in finance at Github, where he gained exposure to the metric from a different angle. He began his career at Deloitte, where he spent 10 years working with a wide range of businesses. As an experienced leader in startup finance, Scott has seen the benefits and pitfalls of working with Customer Lifetime Value. He opined on CLTV and other SaaS finance metrics at Bowery Capital's recent CFO Summit, joining a panel on "Leading Indicators & Customer-Level Finance" alongside InsightSquared CEO Fred Shilmover and Rishi Khanna, the former President of Novus. We hope you'll tune into this episode of the Bowery Capital Startup Sales Podcast to hear him expand on those insights, and learn his tactics for leveraging CLTV to better strategically plan growth and spend in a SaaS startup environment. Please also keep an eye out for a follow-up article next week digging into Customer Lifetime Value and the various ways one can calculate the metric.
This week on the Bowery Capital Startup Sales Podcast, we had Darren Shimkus, the General Manager of Udemy for Business, in the studio to discuss Building a B2B Business Within a B2C Company. Udemy is an online marketplace for education. It is aimed at professional adults who want to add new skills to their resumes and is also sold to businesses for corporate wide education. On our podcast, we dig in with Darren specifically on the B2B side of the business, which Udemy started about 3 years ago. During the podcast, Darren walks us through everything from the decision making process to ultimately launch a B2B business within a B2C company, to how they executed on it, and he even shares a few blind alleys they ran into along the way. We also dug in on how to think about when the right time is to launch an entirely new business model, particularly when the B2C business is doing quite well, with over 13 million users in the case of Udemy. Finally, we talk a bit about the sales strategy on the B2B side, and specifically discuss selling strategies when the key decision maker is not necessarily the end user.