MARKET Secret Sauce

Slack is the post child for tech startup success. My belief is Slack’s success is based on 2 key Market reason
1. They tapped into preexisting demand for coding work teams for synchronous communication
2. The product became a required utility, 51% of users report that they would be in a jam if Slack was shut down

Preexisting or ‘Latent Demand’ creates a sales window that drastically reduces the time, effort, cost to sell

The key to ongoing revenue success: retention, expansion, upsells is that the software becomes a required utility to the customer. Slack, g docs, smartphones, online CRM are for many companies utilities, the harder it is to not use the software the greater the dependency

For my money this is the key to Market success: existing demand reduces the company’s need to buy/build market awareness, dependency on the product’s utility drives down churn and increases LTV

4 Elements of Latent Demand

•Product as defined by the customer
•Best customer profile/segment
•Existing pressure to act
•Investment customer has already made to remove pressure

3 Elements of Utility

•Workflow integration
•Simultaneously increase value / decrease cost
•Ongoing dependency