From Services to SaaS
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Promise Phelon, CEO of TapInfluence, transformed the company from a high-touch agency to a SaaS platform, achieving 400% gross revenue growth in 26 months. The document outlines the phases of this transformation, including challenges faced and lessons learned, such as the importance of understanding customer behavior and the need for proactive customer success. Phelon's leadership has positioned TapInfluence as a leading influencer marketing platform, backed by significant venture capital.
From Services to SaaS
- 1. From Services to SaaS with Promise Phelon SEPT 2017
- 2. Promise Phelon CEO, TAPINFLUENCE As CEO of TapInfluence Promise has evolved the company from a high-touch agency to a data and technology-driven platform with 400% gross revenue growth in 26 months. TapInfluence is the only influencer marketing platform with eight-plus years of data that is used by more than 500 of the world's top brands and the biggest & baddest agencies. Serial entrepreneur. Successful IPO, tens of millions in venture capital raised, two successful founding and exits. The Silicon Valley Business Journal named her a Woman of Influence for leading high-growth technology companies.
- 3. Ireland: Amazing People & Country. Phelon not Phelan.
- 4. Most of you will dramatically change your target market, ideal customer profile, revenue model two to three times in your first five years. Transforming Your Business Model
- 5. 5 TapInfluence Today A Data, Technology-enabled Influencer Marketing Platform
- 6. 6 Transformation Timeline 2009 TapInfluence is founded as an influencer agency. 2015 Promise joins TapInfluence as CEO to accelerate transition and growth. 2013 Brought in venture capital to convert from agency to SaaS. 2016 Complete biz model transition. Closed $14M Series B-1. Tested Ideal Customer Profile. 2017 Moved TapInfluence HQ to Silicon Valley (MTV.) Refined ICP. 2018-2020 Marketplace scale. Influencers earn 3X more than drivers and makers. The average active monthly influencer income is: $1,000-$1,700
- 7. 7 1Phase of the Transformation (Pre-PP) TapInfluence attempts to convert from Services to SaaS in 2013, spent two years trying to make it happen. It’s hard: need SaaS experience, new product, willingness to start-over (#fail.)
- 8. 8 GROSS MARGINS 80% FULL SELF-SERVICE CUSTOMERS 97% CUSTOMER MANAGED CAMPAIGNS 85% First Board Meeting: Define Success!
- 9. 9 Define ideal customer and MVP. Built self- service “on” and “off-ramps” to platform. Signaled change to the market and the impact on pricing, product and experience. Introduced phased transition plan to customers (based on their contract value, potential and profitability.) Primed our marketing and product teams. 2Phase of the Transformation
- 10. 10 Lesson | Active Product Marketing Startups are vessels for market exploration. You’re always actively looking for your Ideal customer, it’s not static. Create personae and iterate on values, readiness and baseline unit economics.
- 11. 11 Retained most of our strategic accounts. Grew several customers through self service product developments, sales & marketing, positioning, pricing. Off- boarded others to agency partners. 3Phase of the Transformation
- 12. 12 When your transformation creates a change in customer behavior, the most important function is proactive Customer Success. To be honest, this was bumpy. Lesson | True Customer Success
- 13. 13 GROSS MARGINS 72% GROWTH 300% (1 year) VENTURE CAPITAL $14M Initial Growth & Outcomes 300% Valuation Growth
- 14. 14 Two years of data means real unit economics. Ideal customer was 180° from who we thought in 2015. This is ok! Customer profitability and unit economics should improve over time. LTV:CAC, Engagement and Adoption are essential. 4Phase of the Transformation
- 15. 15 If you are making a model conversion or looking to growth, your instinct are to scale when you see the early results. Do not! Get scalable unit economics. It’s better to wait, preserve capital. 6.5 v. 2:1. Lesson | Get Economics Right
- 16. 16 Get aligned with your board, investors and key team. Make the transformation quickly. Set iterative milestones. Over-communicate. Lesson | Manage BOD Expectations.
- 17. 17 5Phase of the Transformation 2014 2015 2016 2017 2018 Tap Net ARR - In-Year vs Trailing Qtr Trailing Qtr In-Year
- 18. 18 • Treat all of this as a learning experience. • Culture is easier to create than change. • Our personal shadow qualities limit our business. Get a coach, do what you love in the business. • Have a No-Vampire Rule. • When in doubt, lean on discipline and not motivation. Real Lessons | Self Care
- 19. Thank You! T A P I N F L U E N C E . C O M ceo@tapinfluence.com @PromisePhelon@TapInfluence Promise Phelon CEO, TAPINFLUENCE