How Bill Nye The Science Guy Can Help You Survive SaaS Pricing Changes
Let me tell about why science rules (and can make you lots of sales) : Back when I was growing up in the 90’s, I’d watch cable TV . And, at times, I’d flip the channel and pay attention to a nerd in a blue lab coat and bow tie. This fella was Bill Nye the Science Guy. Using the persona of a cartoonish mad scientist, Bill would teach scientific concepts in a fun way way that kids can understand.
He’d encourage us kids to replicate his experiments. Some of the experiments were kind of gnarly, like lying on a bed of nail.
To further add to the entertainment factor, each episode would throw in a popular 90’s music video (e.g. Nirvana’s “Smells Like Teen Spirit”) and replace the words with lyrics related to whatever it was Bill was talking about in that episode (e.g. air pressure).
For those of you who read my book-Business Baroque:An Entrepreneur’s Guide to Cashing In On Creativity-you’ll recognize this as a great example of “conceptual blending”.
Bill Nye’s currently has a reputation as a smug know it all who dismissively mocks people who hold different views.
But his show in the 90’s was different. It’s entertainment and educational value was such that it lasted for 5 seasons.
Which brings me to 2 points:
1.) SaaS companies , no matter how niche their product, are still commodities in this market. Therefore, their marketing has to engage buyers beyond just features and benefits.
2.) The current payment model for SaaS will vanish before our eyes.
This second point is based off a predication by by Mike Scarpelli, the CFO of Snowflake . After his business switched to a usage based model , Snowflake posted 124% growth and went on to trade at 44x multiple on revenues in early 2021. Mike predicts that the usage-based model will be the new normal for SaaS companies because buyers prefer to pay only for what they use.
This is where a Bill Nye the Science Guy approach to marketing is important. The more frequent,entertaining, and engaging your marketing is, the more successfully you’d be able to “up sell” customers in using (and thus buying) more of your software.
Most SaaS companies won’t get this point. That’s one big reason VCs want such an outsize return on their investment when looking at SaaS companies. They know so few companies are going to make it.
You can be one of those few.
P.S. My book shows business owners and entrepreneurs the exact steps for using creativity to make lots of money. It costs around $30 everywhere else, but if you join my daily email list by clicking the link below, you can have a digital copy for free.
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