Jonathan Becker: belief

Transcript context

…Awesome, that's really good advice. I want to chat out about AI soon, just because I imagine that could help with some of these things. But you mentioned B2B SaaS, and I wanted to ask, I imagine Google is the primary channel for B2B SaaS, and if not, or if it is, where else do you find there's value in spending money to drive growth through B2B SaaS, which channels and ad networks? So I'm agnostic here in terms of where people should be spending money. I see this world in terms of impressions and clicks, and does that conform to the marketing economics of a project that needs to be achieved in order for it to grow. It's less about where to place your money and how to think about the placement of those funds. And so the common mistake that we see as people build out a funnel, so to speak, for B2B lead gen projects, or B2C lead gen projects, is they'll be overly reliant on the first of a sequence of metrics that ultimately yields a sale. So typically it's something like cost per lead, marketing qualified lead, sales accepted lead, there might be a couple more metrics there, and then eventually a sale occurs. And so that the thinking is that, okay, for sales to occur, I need more leads at the top of the funnel. The more leads I have, the more marketing qualified leads I'll get, the more sales accepted leads get, and ultimately the more opportunities there will be and the more revenue will generate. And so if I think about this world of lead generation on performance marketing platforms as a function of cost per lead in that sense that I just described, then the tendency is always to want to drive down the cost per lead, thinking that that's the efficiency, I can get more cheaper leads and that will yield more revenue. When in fact it turns out that if you flip that conversation on its head and say, not all opportunities and sales are equal, and instead of focusing upfront on a cost per lead, I now want to focus on what is a high value customer, so the cost per lead is actually higher, but the ROI of targeting those people is also higher. And so to get the higher quality leads, it's not a function of CPL. And so that is a very common pitfall that we see when people come to us. The antidote to this, it's interesting, so Thrive developed an ETL tool, an extract transfer load tool called Thrive Stack. It's not commercially available, but if you wanted a commercially available version of this, you can use something called Supermetrics. Basically Supermetrics is a data connector. There's a world of different data connectors out there, but it allows you to pipe, via an API, revenue data from your CRM into a third party database that can then be joined with data from the channel itself. You can build tables within a database and normalize them together in a manner where you can start to determine the relationship between, again, the audience that a particular cohort of opportunities came from and whether a sufficient degree of revenue is derived from those opportunities. And then you can build upon that what is known as a lead scoring model, which allows you to bid in real time on the audiences that have a higher likelihood to convert to high revenue generating customers. then you can build upon that what is known as a lead scoring model, which allows you to bid in real time on the audiences that have a higher likelihood to convert to high revenue generating customers. And so the magic there, we talked a little bit about rates of return and instant gratification in the performance marketing world, lead generation inherently is a slow gratification process. And so the problem is that if my pipeline is full of opportunities that yield revenue in two months, six months, sometimes 12 months, how do I determine how heavily to bid on different leads today in order to predictively have an outcome where I'm maximizing revenue? And a lead scoring model basically solves for that.…

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