Dear Reader,
Welcome to the 58th edition of the good reads newsletter by Malpani Ventures. Sharing your weekly dose of articles for this weekend’s reading!
The Rebundling Cycle Has Begun in B2B SaaS
Bundling and unbundling of products have been observed as cyclical dynamics in the market. Bundling involves offering a set of products that work well together or are distributed together, leveraging existing customer relationships. Unbundling focuses on building a best-of-breed product that can compete with bundled alternatives. A prime example is Google bundling Google Meet with Google Calendar and Chrome.
The author notes that the market has shifted between periods where bundling dominates and periods where standalone products have an advantage. Currently, there seems to be a movement towards bundled offerings being more attractive than point solutions, as observed in customer buying behaviour.
In B2B SaaS the market's shift towards bundled offerings may impact the funding landscape, as bundled products often require larger initial capital investments compared to point solutions. The trend of bundled offerings and its impact on the software ecosystem is being closely monitored.
How to structure your startup’s website
This is a short but informative post on structuring your startup’s website:
Each page on your startup's website should have a specific purpose.
There are 7 types of website pages to consider, with the first 3 (Home, Persona, Use Case) being critical for customer acquisition.
These pages serve as entrance paths, connecting the user's situation to your product's main capability. Consider your GTM model and the prospect's mindset when designing them.
Second-order effects of AI in Vertical SaaS
AI's impact on vertical software building is multi-faceted. Why?
AI can enhance existing tools and accelerate the digitization of offline industries that still heavily rely on manual processes. Moreover, AI can drive the adoption of autonomous agent products, which act as central nervous system functions for small businesses, offering superior solutions and driving marketplaces of autonomous agents interacting on behalf of SMB owners. Additionally, AI can improve software development efficiencies, reducing costs and potentially shortening the time to exit. However, exceptional founder-market fit and distribution excellence remain crucial for success.
AI also has the potential to revolutionize traditional top-down, outbound sales and go-to-market (GTM) motions in vertical SaaS. It can transform account-based marketing and streamline the research process for sales representatives, enabling them to gather data effectively from various sources. This proliferation of AI-enhanced go-to-market software may lead to more efficient customer acquisition cost (CAC) paybacks.
What does an awesome pricing page look like?
Elena shares her views on an awesome pricing page:
Effective pricing pages are crucial for converting visitors to paid customers by showcasing the monetization model, instilling trust, and providing clear navigation
Best-in-class pricing pages convert 15-20% of visitors to the checkout page, with checkout pages converting around 50% to paid customers
Follow a prototype with social proof, 3-4 plan options, clear CTAs, minimalistic design, dynamic elements, and optimize based on your business and customers' needs
Until next time!