🔥 The SaaS Era of 2013-2022 is OVER - Welcome to the world of Hyperfunctional SaaS. 🚀
This new era requires companies to do more with less while raising the bar for innovation, efficiency, and customer expectations. Here are the key takeaways from Jason M. Lemkin, Founder & CEO of SaaStr, during his excellent session at SaaStr 2024 💫 🙌 :
1️⃣ AI is now table stakes 🧠: Customers expect AI to replace up to 50% of the workforce. It’s happening, especially in sectors like customer service, where platforms like Zendesk, Intercom, and Talkdesk are cutting contact center headcount by 30%-50%.
2️⃣ The customer bar has gone WAY up 📈:
AI isn’t just a buzzword anymore; it’s transforming how we structure and search data, making it instantly accessible and actionable.
Customers now want every product to function with plain English prompts, creating seamless, intuitive experiences akin to OpenAI.
Even complex onboarding processes are expected to be fully automated and done now, not weeks later!
3️⃣ One platform, many functions 🌐:
The rise of multiproduct platforms like HubSpot and monday.com shows that customers demand fewer point solutions and more multifunctional, integrated systems. Whether it's payroll, CRM, or onboarding – customers expect platforms to deliver 20+ functions under one roof. 🤹
4️⃣ Radical efficiency is the new normal 🏃♂️💨: Companies at $1B ARR now expect 20%+ margins and operate with leaner teams – just 700 FTEs at $200M ARR. The message? Deliver more value, with less. 😍
5️⃣ Automation is everywhere ⚙️: Companies can no longer afford to rely on manual processes. Automation is the backbone of every function, from sales to support to operations.
6️⃣ Product expectations skyrocketing 🚀: Customers expect to replace 30%-50% of their workforce with AI, and demand core platforms that can handle the workload of 20+ point solutions. It’s no longer enough to offer a single feature – you must provide hyperfunctional, multifaceted solutions.
💡 Bottom Line: It’s harder, it’s faster, and it’s more complex – welcome to Hyperfunctional SaaS. Time to step up… or step aside.
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