What I learn from Ben Chestnut, Co-founder of MailChimp
Have you ever researched for tools so you can email blast (ok, spam) your customers? You probably heard of MailChimp. The company with a cute monkey logo wearing a postman hat. It is regarded as one of the most successful bootstrapped, SMB-focused SAAS (Software As A Service) company in the US, and probably the world.
Need proof? Well, got spare cash? The founders might sell some shares at a $10 Billion USD valuation.
Ben Chesnut, co-founder of Mailchimp. He is one of the legendary SAAS founder whom i admired alot, for his unorthodox, witty way of doing things.
I did an interview with Simon Grabowski, CEO of Getresponse, one of mailchimp competitor a few years back. Hopefully one day, I have a chance to interview Ben, probably at Thailand (since he's half Thai). :)
These are some of the learning I picked up from this video interview he did with Jason Lemkin, founder of Saastr. There is another great video he did with Jazon Nazar too for article in entrepreneurs.com
1) The 10X feature? Freemium, debuted in 2009~2010. This is where things really skyrocket. It grows like from 100,000 users, to about 1 Million within its first year, then to 3 Million on 2nd years. As you can see, this is not really a feature, but rather an innovation in the business model. (~4:33)
2) 1st Choke (point where one user converts from free to paid)? There isn't really any one choke. Since their targeted market is SMB, 30% of SMB die in 2 years, 50% die in 5 years. So he look at his sales pipeline like 5 to 10 years. (~7:30)
3) How does Ben view churn? He asked, which industry in which the small business customers are the most tech savvy? That turned out to be the eCommerce customers, they are the one pushing the limit of innovation for mailchimp. The thinking is, how mailchimp can help them to sell more? Then the technology built for these group of high impact, high end customers, it will trickle down on the platform and benefits other customers as well. (~10:10)
4) Small business, frequently using mailchimp as CRM. Probably in a very similar way, Zetpy can copy a page from this too :), which we did. Zetpy can show you who are your Top 100 Spending Customers buying across channels like Lazada, Shopee, Shopify or WooCommerce. (~11:10)
5) How does mailchimp build brands? Ben experiment with different type of medias (eg podcast). They have a culture of tinkering and experimenting with things. Ben wants something more tangible, where people can see, feel, coz it makes your brands real. Think Billboards, Monkey Toys, Socks! Summarizing Brand building in ABC (~14:20)
A) Care about your brand.
B) Try to get it physical, not just digital only (when you can afford it)
C) Always be tinkering.
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