6/24/24: Talk about the problem you are solving, invest in social proof, & AI will transform search

Marketing Strategy

Hello and welcome to Closing the Growth Gap!
I’m Ben Scandlen, co-founder of Mosaic Growth Solutions. Here, I share my insights on the most interesting topics in growth and marketing, based on my experience assessing hundreds of B2B SaaS companies and helping drive millions in growth. Today, we have several great topics to discuss.

1. The Importance of Clearly Defining the Problem

Anthony Pierri says one of the most common problems he sees on homepages is that companies don’t say what problem they are solving. Check out his post here.

My Take:
There are very few brand new categories, so companies are going to grow by taking customers from a competitor. How do you do this? Defining a problem based on insights from your competitors’ customers is a big opportunity to differentiate your company. Research from Gartner shows that 80% of new business growth comes from existing market share, meaning companies must differentiate by addressing the specific pain points of competitors’ customers.

Example:
We recently worked with Scheduler AI, an up-and-coming company entering a crowded space with giants like Calendly and Chili Piper. They needed to differentiate themselves by addressing the limitations of existing tools, emphasizing their end-to-end scheduling solution that saves time and resources for users.

2. The Power of Social Proof

Oren Greenberg argues that companies are investing too much in content and should be investing in social proof instead. Read his post here.

My Take:
Word of mouth is the primary driver of growth, so companies need to find ways to make it easier for customers to share. According to Nielsen, 92% of consumers believe suggestions from friends and family more than advertising. Social proof, such as customer testimonials and reviews, significantly impacts purchasing decisions. A survey by BrightLocal found that 87% of consumers read online reviews for local businesses, indicating the power of social proof in driving growth.

Actionable Insight:
Shift some of your content budget towards incentivizing customers to share their experiences on platforms like LinkedIn. Amplify these posts using a paid budget to increase their reach and impact. This strategy can create a more authentic and trusted brand presence.

3. The Future of Search with AI

Pete Blackshaw shares a clip of Elon Musk saying that AI is going to replace search as we know it today. Watch the clip here.

My Take:
Search engines (primarily Google) are the primary content economy of the Internet today. People create content to be ‘paid’ in traffic from search engines. If AI starts answering questions directly, we need to think about how content creators will get ‘paid’ in a world of AI, or people will stop creating new content.

Statistics and Trends:
Currently, 53% of all website traffic comes from organic search, highlighting the critical role of search engines in driving online engagement. However, as AI technologies like Google’s Gemini evolve, the traditional search model may shift towards AI-generated answers, reducing the reliance on link-based search results.

Future Considerations:
Businesses must adapt by finding new ways to create value in an AI-driven search landscape. This might include developing proprietary data, unique insights, and exclusive content that AI can’t easily replicate. Additionally, businesses should explore how to integrate AI tools into their own customer service and content delivery strategies to stay ahead of the curve.

Conclusion

Three Tips for Driving Growth Today:

  1. Clearly State the Problem You Solve:
    Make sure your homepage clearly articulates the problem your company solves. Position yourself against the problem, not necessarily against competitors, to differentiate effectively.
  2. Invest in Word-of-Mouth Marketing:
    Word of mouth is a powerful growth driver. Find ways to make it easy for your customers to share their positive experiences and incentivize them to do so.
  3. Prepare for AI-Driven Search:
    AI will transform search. Understand how this shift will affect your content strategy and find ways to maintain visibility and engagement in an AI-dominated search landscape.

By focusing on these areas, you can build a strong foundation for sustainable growth in the ever-evolving B2B SaaS market. Thank you for tuning into Closing the Growth Gap. Let’s continue to drive growth together.