Keep it Simple

Yes, this is a pretty straight forward statement, however, as a business you need to be extremely disciplined in order to constantly keep things simple.

Personally I like to equate simplicity with perfection and the following quote sums up my general thinking with regards to simplicity.

Perfection is achieved not when there is nothing more to add, but when there is nothing left to take away

Antoine de Saint-Exupery

I have spent my career building product based businesses and it is all too easy when you have a team of talented product managers and developers to come up with all manner of features that they feel customers need.

Once a feature has been suggested – and in some cases even partially/fully developed – it is very difficult to imagine the product without it.

The problem can quickly escape when you start talking to customers. In general teams I have found that the customers who love to provide feedback and ideas are at the “power user” end of the scale, and therefore they amplify and reinforce the feeling regarding the need for a feature.

The problem lies in the fact that these power-users (and your own staff basically fall in the same category) represent the absolute minority of users. Catering to their every need, wish and whim means that very quickly you have a complex product. Yes it may be extremely powerful, but it has now become difficult for new and less power users to use.

The real art of keep things simple doesn’t have to mean reducing these power user features, but can also be dealt with in different way from creating a very well crafted UI that only exposes complex functions when needed through to creating different versions of the same product with different (extended) feature sets.

Keeping it simple doesn’t only apply to products and features but is important in all aspects of business.

In this article I outlined the changes to our pricing that changed the adoption rate of ARCHICADselect from around 15% to virtually 100%. By looking at our pricing model and adjusting it to make it more easily understood we found we were able to present the price to new and existing customers in an easily understood manner which led to a massive improvement to our business.

Some people love to come up with Complex Pricing Schemes in order to cater for every option with a sense that by doing so they will maximise their margin. However, if an internal sales person can’t understand a pricing matrix then it is a big clue that your potential customers won’t, or they will look for the easiest option that satisfies their needs.

In the same way when we launched Cadimage Tools on Subscription we could have provided a whole host of options to allow customers to pick and choose. However, we decided even with 7 individual tools that packaging them in three plans made the most sense. Some would argue we left money on the table, but I believe we attracted most customers at a higher price point then we would have had we given them infinite options. It can be counter-intuitive, but sometimes sacrificing apparent margin in order to keep things simple actually ends up being far more profitable.

As I said at the start, it requires discipline to always keep things simple and its all to easy to get carried away internally with grand (complex) ideas. Remember to ask yourself:

Is there anything I can remove from this without materially affecting it

And bring a sense of simplicity to all aspects of your business.


B2B SaaS Pricing

It is great to see this recently released report by Chart Mogul following their research in to over 600 SaaS Pricing Pages.

The whole report is worth reviewing if you are in the B2B SaaS business. Some of the key things I was interested to review include:

Optimal Number of Plans

I’ve always had a gut feeling that 3 was the ideal number of plans. I’m not quite sure where it came from but maybe it was from browsing a number of payment pages when I first looked into offering Subscription.

Anyway this report confirmed that 3 is the most popular number of plans on offer – whether or not that is actually optimal is harder to judge but maybe it is a fair assumption.

Incidentally, when we launched the Cadimage Tools on Subscription we opted for 3 plans!

Free Trials

Free Trials definitely appear the way to go with over 80% of companies offering some sort of free trail.

I was surprised however, that over 60% of free trials request card details up front. This is always an interesting debate as to whether asking for details up front presents another hurdle, however, in a sense it also most likely leads to higher conversion so there are different trade offs to measure.

Freemium

I wrote the other day about my thoughts on Freemium so it was interesting to see that less then 30% offered a Free Plan.

That said, Freemium is used extensively to grow ARR in the $100m – $1B range [ nice range 😉 ]

The reference to this article regarding “Monetizing backwards” still reinforced my thinking though.

Annual vrs Monthly

This one was more surprising especially with regards to the over 40% who don’t offer annual plans. I’m a firm believer that having annual and monthly payment plans help create a natural balance of lowest cost of entry, versus longer term customers.

Though that said, my own experience when introducing ArchiCAD Subscription was that I felt monthly was sufficient. Mainly because the entire exercise was to reduce the barrier to entry, and an annual pan would have been still too costly for the part of the market I was targeting at that stage.


NXT BLD 2020

Earlier in the year I attended BIM live show. When talking to a friend about what I was up to he recommended I attend NXT BLD.

This year – like many conferences and events – NZT BLD turned into an experiment with it being held as a Virtual Conference.

There were a series of 6 Sessions spread over 6 days. I found the daily sessions a great way to attend those that attended me and found it easy to fit into my day.

Obviously it missed the interaction with participants but from a content point of view the delivery was very well done. I enjoyed all the sessions I attended and found them very thought provoking.

All sessions are available on demand for those that register and are definitely worth a watch.

At this stage NXT BLD 2021 is scheduled – in person – for London June 2021.

Based on this years event I hope I can attend 2021 in person and maybe even have an opportunity to show what we are working on.


To be or not to be… Freemium

When I was first thinking about setting up a business I touched briefly on the concept of Freemium.

Now that I am underway with my new business it is now time to give it serious thought.

There are a wide array of articles in relation to freemium, and to boil them all down – there is no one right or wrong way – as always it depends on a number of factors.

Mailchimp for example spent 8 years refining their product and pricing before they felt confident a Freemium offering would be beneficial. While companies like Dropbox, Evernote and Slack embraced Freemium from the beginning and the majority of their success is based on their Freemium model.

That said, businesses that target markets above 100 million, can be quite happy with 1% conversion rates as 1 million paying customers can generate an extremely healthy business.

My general feeling is that it is extremely important to truly understand what customers value in your product before embarking on a Freemium journey. This need not take eight years like Mailchimp, but really understanding and your market for a period of time prevents the guesswork associated with launching Freemium from day one.

Also you don’t need to be worried about not launching, you can always introduce Freemium when the time is right.

This quote from a recent article I read encapsulates my current thinking:

“If implemented right, Freemium can be a long-term revenue driver for businesses. However, this can only be realized by measuring metrics that showcase this strategy’s impact over time.”

Freemium: Playing the Long Game

Freemium is definitely something I want to explore in the future but in the first instance I want to measure and understand value. That said, I will have a Free Trial Version so that at least allows potential customer to access the product before committing.


Business Lessons

October always seems to be a month of reflection for me for a couple of key reasons.

Firstly on a deeply personal level October is the month my mum was born. Unfortunately she left us all too soon over 8 years ago but October is a month full of amazing memories.

Secondly, October is the month Cadimage was formed and so I also think back to a major part of my life and career.

A year ago I wrote a series of posts on the Cadimage Story.

Today I’ve decided to post a few of the lessons I learnt during my time.

I’ve created a page so you can keep track as I post them.

Check back soon for my first post.



New iPad Air

Last night in between cooking dinner I checked out Apples latest event – and then just now watched the bits I missed.

As had been telegraphed the launch included the new iPad Air.

It is now over 10 years since I wrote about the original iPad when it was first launched.

The evolution of the product over this time has been amazing to see and the sheer power of the device is something to behold. The new A14 Chip in this latest iPad has some [almost] unbelievable specs and the fact that it works with Apple Pencil 2 opens up a world of opportunities for this mid-level device.

It is incredible to think that on average over 50 million units have been sold each and every year since it was first launched.

While I haven’t given up my laptop yet, I know many people who regularly use an iPad as their main computing device.

I remember when it was launched initially and the amount of criticism that both the product itself and the name received.

I won’t be buying an Air just yet – but the blue one does look pretty sharp!


Running [another] 1,000km

Last year I ran 1,000km in a year for the first time. This year I decided to do it again. I find running a great time to think away from everything else. I also haven’t had a lot of work this year so I’ve been setting a few other goals along the way

Including:

  • Running a half marathon a month (4 out of 8 achieved to date)
  • Running 200km in month – this one was quite tough

With these other targets my overall milage has increased and sees me completing the 1,000 four months earlier then last year.


Making a start…

Quite often things take longer then expected! But today marks the official start of something new.

Ive been trying to get something off the ground for over 12 months and after a few misguided attempts today marked the incorporation of a new business.

We’ve got a lot ahead of us before we’ll be in a position to talk about it but it is a great feeling to have my own business again.

Today marks the point where various prototypes from the last 6 months get put to the side and we start development of what will hopefully be v1 of our product.

Getting started is always a hump to get over, but while we have lots of challenges ahead of us as we begin to build a new business from the ground up, we now have a single minded goal and focus to aim at.


The B1M – 1,000,000

Great recognition for the work the team over at The B1M are doing with an amazing milestone reached recently:

The B1M becomes the first construction YouTube channel to reach one million subscribers

Wow! Thats a great achievement – congratulations Fred and team.

In Fred’s words, he

“loves construction and wants the whole world to love it too”

Fred Mills

Well 1,000,000 is a good first step!