Hey everyone, and welcome to this quarterly update!
▪️ YoY Growth: 77,34%
▪️ Quarterly Growth: -20,84%
▪️ Headcount: 8 (-2)
- A major change was that we separated ways with our Head of Marketing & Sales, Ruben. We restructured the team with the decision to not have one person dedicated to both, Marketing and Sales. Instead of hiring someone new, we gave existing team members more responsibilities. This change turned out very well. The new structure with low hierarchies helps to get things done fast, and even though we have a lower headcount than last quarter, we’re getting more done than ever.
- We continued to implement the management system EOS® by adding more parts of it.
- We hired a Growth Consultant, who helps us every week to improve the prioritization of projects and with strategy.
- We did plenty of small improvements in the production workflows, and outsourced a lot of work from my Co-Founder Jonas, to involve him more in working on the company with me.
Marketing & Sales Updates
▪️ Customer Growth: 7,59%
- To better estimate future marketing efforts, we significantly improved our tracking by creating a Marketing CRM. It collects every app signup and paying customer. We implemented a question at signup to ask where people come from, plus created our own coupon tracking system. Basically, we can now add coupon codes to any URL when sending people to our website and the coupon code will be stored in a cookie. Once they sign up, we store the coupon code, so customers can use it without having to remember it, and we can know exactly how many people from which ads sign up and become customers.
- We kept working on our paid ads, which used to work well, but this year started to perform way worse.
- We tested FB conversion ads, which didn’t work well in the first try, but we will try with a different CTA, and we’re now trying traffic ads. All with the goal of getting people to sign up.
- We set up retargeting ads on FB, IG, and YT, which are working well.
- Our most successful way to generate customers used to be an FB ad funnel with lead ads. While the initial CAC became worse, it is still profitable, however the sales effort of the leads was immense, making it burning money. We made it to automize the manual efforts from sales, making it profitable again.
- We started outreaches again. So far, we’re doing LinkedIn outreach targeting agencies, with just one account. We already created leads and customers from that, even though in the past usually customers came a while after reaching out to them.
- We started to review and optimize our sales workflows and automations, which will also be a big focus next quarter.
- We saved 30-40% of working time in sales and marketing by optimizing workflows and automizing tasks, since I involved myself more there. Especially for our Business Development Manager Lasse, we basically automized 90% of his work, creating space for plenty of new projects next quarter.
▪️ Active Companies: -22%
▪️ Active Subscriptions: +0%
▪️ Avg. Subscription Churn: 16,61%
- We launched numerous app features:
- In-app subscription calendar: Allows customers to manage everything regarding their subscription right in the app.
- Task approvals: Allows customers to approve all finished tasks before they are marked as completed, to help them manage their projects.
- Product options adjustable in the cart: Allows customers to not just review, but directly edit product options inside the cart. If a customer forgot a part in the briefing before, they had to create a new project.
▪️ Q3 YoY Growth Forecast: 26,10%
▪️ Q3 Quarterly Growth Forecast: 10,01%
In the next quarter, I expect a growth of 10%, as we’re making quite a heavy shift in our marketing approach, which takes time to work.
Overall, our idea is to focus more on building a brand and providing value first through good content marketing and free resources, while before we heavily focused on funnels that are supposed to sell our products right away. Our goal is to establish Blogtec as a name in SEO. This is, long-term, the only sustainable approach to doing marketing. That doesn’t mean we stop doing what we did before, instead we will mix short- and long-term strategies.
Here are our company’s focuses for the next quarter:
Focus 1: Grow Brand Awareness
As I said, in the long term, the only sustainable way of doing Marketing is to build a brand and be the first company that comes to people’s mind when they think about SEO services. For that, we’ll create an additional focus on brand and value-driven marketing in the future.
This quarter, we’ll mainly build different paid ads funnels that are focusing on delivering value first through offering free content like guides or an expertise SEO newsletter… This is something really new, and I’m excited to see how that turns out.
Focus 2: Scale Lead Generation
When we reevaluated the past CAC of cold and partnership outreaches across different channels, it turned out that many customers bought many months, even a year, after we reached them out. This heavily improved the CAC in the past to a 5x CAC to LTV rate. That’s why we will focus on scaling our cold outreaches. We’ll also aim to build partnerships with marketing blogs to nurture our affiliate system.
Focus 3: Improve Existing Paid Advertising Funnels
Now that our previously well-performing funnel has a way better CAC again due to the automatization of sales efforts, we’ll try to improve the CAC of it.
In addition, we keep working on driving people to sign up, as just now we have solid tracking for that funnel, and we keep working on improving our retargeting funnels.
Focus 4: Professionalize App Onboarding
As we’re getting more and more people to sign up through our ad funnels or organically, we need to offer them a better welcome to the app, and help them to get started. That’s why we’ll implement multiple features to help with that, like an app tour, product guidelines, and a strategy quiz.
Focus 5: Improve Sales & Email Marketing Workflows
Since I’m more involved in marketing and sales, I realized two issues. First, we’re doing far too little for existing customers, and we collect thousands of leads and app sign-ups, but don’t do anything with them later on.
That’s why we will review all sales workflows, build new existing customers sales flows, and improve our email marketing with special offers for existing customers, sales leads, and app signups.
Focus 6: Develop App & Services
Improving your product should always be a focus. That’s why in Q4, we plan to launch our backlink marketplace, as well as brand profiles, which allow customers to connect their projects and subscriptions to different brands, making managing them more efficient. In addition, we planned multiple initiatives to further improve the quality of our services.
The approaches we followed the last years to acquire customers don’t work well anymore, this includes our paid ads as well as our outreach strategies. As a result, new paying customer numbers are going down, and we’re having to make a shift.
We’re setting up and testing a high number of funnels with really different approaches. We also include slower, more brand-driven approaches in the hope that these will be more scalable and have a lower customer acquisition cost in the long term.
I’m really excited about these new approaches and hope that we can establish Blogtec as a brand in the SEO field. Our current team is remarkable, making us ship projects faster than ever and hopefully turn tables fast.