Which buyer persona should we sell to?
Three contenders. Fit vs Function vs Power
I was zooming with the founders of a pre-PMF company.
The call started with, “who should we sell to.”
They were selling their B2B SaaS product to three different personas—still trying to find the best fit.
When they were building the product; it was clear to them that the product was for the CEO persona; a typical product or tech founder.
However, once they launched the product; it was best adopted by Customer Success teams. The CS persona was sticky with the product and was consistently achieving the "activation" metric the founders set for the product.
But, typically, after a couple of months of using the product, they started churning.
Curious, the founders started to dig deep.
They found that while the CS group was the primary users of the product, they were using the tool to consolidate data. Then, they would take the information to the Product Management group for them to act on it.
At this point, there was friction with the PMs because they wanted to use their own tool.
Vetoed by the PM group, the CS persona would cancel the subscription.
So, why not then sell to the PM group, right?
Selling to the PM group meant modifying the product roadmap, and jumping into an overlapping space with a ton of competition.
Stick to your guns or change course?
When you build a product for a specific persona; it’s fair to trust your gut to see if you can build traction with that persona.
The point of the founders, both veterans in tech, was—they were eating their own dog food and they couldn’t function without it.
The counterpoint?
While their ICP was companies with more than $1 million in ARR; it was clear that as revenue grew, the founder would abandon the product and eventually pass it off to another persona. It was in no way a lifeline software.
In Merchant of Doubt, Erik M. Conway & Naomi Oreskes, write;
“If we read an article in the newspaper presenting two opposing viewpoints, we assume both have validity, and we think it would be wrong to shut one side down. But often one side is represented only by a single ‘expert’.”
Take away: Always trust your judgement. But, listen closely to the market and be ready to change course.
Power vs function
When it came down to Product Management v Customer Success; it was a trade-off.
The product was popular and well adopted by the CS persona. But, the shortcomings were clear.
The CS group did not have the purchasing power for the product (despite low-ticket size), and in the internal power struggle—always lost out to the PM group.
That's two strikes;
The persona does not have the means to buy
When pitted against another buying group, they did not have the power or influence to sway the decision
With that new evidence, both traction and activation go out of the window. They're worthless without the ability to monetize.
In fact, they'd be better off looking at a better activation metric; one that’s tied to monetization or retention.
Takeaway: Always pick a persona with the means to buy over one that uses the product more; if it ever comes to that. Always side with the power structure. Don't bet against it.
Selling to the PM group means a significant detour in their product roadmap and entering an adjoining space; one that’s super-competitive.
While this is a competitive space, it has its upsides too; it’s a validated market. The time-to-PMF would be way faster.
Two other smaller players have both made it to six and seven figures in ARR. And, then, there's the behemoth that exists in the space.
Selling to the PM group would almost be a new launch and a huge challenge. They'll be selling a new, under-developed product to an over-marketed-to persona.
Takeaway: Only time will tell.
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