The Transaction

Mastering Value and ROI in SaaS with Matt Harney - The Transaction - Ep # 17

Jul 25, 2024

Listen to the Founder of Cloud Ratings, Matt Harney, share insights on the importance of ROI in SaaS. Discover how personalized ROI can revolutionize sales strategies. Learn about the impact of AI integration in the software industry and the significance of support quality for customer satisfaction. Find out why security and HR software sectors have higher sales success rates than collaboration tools.

54:13

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Episode guests

Matt Harney

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Episode notes

Podcast summary created with Snipd AI

Quick takeaways

Emphasizing personalized ROI calculators boosts sales strategies' effectiveness.

High Net Promoter Scores are driven by quality support, crucial for customer satisfaction and loyalty.

Deep dives

The Importance of Building Personalized ROI Calculators

Personalized ROI calculators are highlighted as crucial tools for companies to convey the value they provide to potential customers effectively. While generic ROI calculators may not be as impactful, tailoring the ROI calculation to each prospect can significantly enhance sales outcomes. Utilizing the quantification skills of individuals familiar with FP&A functions or procurement can lead to more credible and thorough ROI assessments, potentially uncovering new insights that traditional marketing or sales teams might miss.

Intro

3min

Discussion on the Colbert Questionnaire and Nostalgia for Basketball Players

3min

Importance of Value Selling in SaaS Industry

20min

Insights on B2B Podcasts and Generating Leads

2min

Value, ROI, and AI Adoption in the SaaS Industry

14min

Importance of Understanding Touch Patterns and Workflows for AI in Software

8min

Emphasizing Storytelling and Personalized ROI Calculators for Demonstrating Value

4min

Today’s episode showcases Craig and Matt as they hear powerful insights from the Founder of Cloud Ratings, Matt Harney, as he discusses the importance of ROI and value selling within the software industry. The conversation begins with a discussion on the underutilization of ROI calculators by software companies, emphasizing how personalized ROI can be a game-changer for sales. This episode also highlights AI potential and how that might look in the future. Listen to hear Matt Harney’s fascinating insights into the world of software research analysis.

Takeaways:

Emphasizing quantified ROI is crucial. Leaders should incorporate this into their sales strategies by developing personalized ROI calculators.
The primary driver of high Net Promoter Scores (NPS) is the quality of support. Ensuring an excellent support experience can significantly uplift customer satisfaction and loyalty.
There is a gap between the hyped potential of AI and its actual implementation by established players. Leaders should focus on practical, impactful AI integrations rather than just following trends.
Security and HR software sectors yield higher quota attainment rates for sales teams compared to collaboration and productivity tools. This can inform strategic decisions on market focus and product development.
Leveraging internal financial analysts such as FPA teams or CFOs to build ROI models can provide more credible, detailed insights.
Software industry leaders should be flexible and prepared to adapt to evolving market demands and emerging technologies, ensuring their offerings stay relevant and competitive.

Chapters:

00:00 - Intro
01:09 - Matt Harney: Passion for Software
03:00 - Colbert Questions for Matt
6:10 - Market Misconceptions
7:58 - Power of ROI
12:47 - Applications of ROI
23:47 - Third Party Validation/True ROI
28:29 - Revenue Multiples and Valuation
30:34 - AI and SaaS
33:46 - Future of B2B AI
43:17 - Quality Support in SaaS
46:49 - Most Attractive Categories in SaaS
52:47 - Outro and Final Thoughts

Quote of the Show:

“To me, it's surprising how little there is on ROI, and I think it should be a point of pride, right? That would be great if there was more of that in this industry because it also reflects that all of these things exist for a reason - it's to serve customers. You have to earn your way, and it all comes back to, what do customers get from the software?” - Matt Harney

Sponsor:

The Transaction is sponsored and produced by Ringmaster, on a mission to create connections through Branded podcasts. Learn more at https://ringmaster.com/

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