They’ve Passed $15M in Revenue Using Breakfast Meetups for Growth

Louis Jonckheere

In Episode #754, Nathan interviews Louis Jonckheere. He’s one of the co-founders of Showpad which is the second company that he’s founded. He and his co-founders founded the mobile development agency, In The Pocket, in 2010 where he still is on the board. Prior to In The Pocket, he was a strategic project manager at NetLog where he first met one of his co-founders. He also holds a masters degree in law and business and he’s currently the Chief Product Officer at Showpad.

Famous Five:

  • Favorite Book? – The Hard Thing About Hard Things
  • What CEO do you follow? – Elon Musk
  • Favorite online tool? — Google Apps
  • How many hours of sleep do you get?— 5-6
  • If you could let your 20-year old self, know one thing, what would it be? – “That you should’ve sold your first company sooner”

Time Stamped Show Notes:

  • 01:21 – Nathan introduces Louis to the show
  • 02:05 – Louis is the one responsible for product design and engineering, and he’s also in charge of the product marketing team
  • 02:36 – Louis collaborates with their sales team
    • 02:50 – Louis asks their sales team about the improvements they could make to the product depending on customer feedback
  • 03:13 – Showpad is a sales enablement platform
    • 03:22 – Showpad creates a content management system for their clients
    • 03:47 – The marketing team uses Showpad to reach salespeople
    • 04:14 – The salespeople are in the same company
    • 04:27 – 90% of what marketing creates never gets used
  • 04:47 – Showpad is used internally in businesses
  • 05:36 – Showpad is a SaaS business
  • 05:51 – Average contract value is $50-60K per land deal
  • 06:46 – A customer that signed-up can grow up to an average of 140% in 12 months
  • 07:04 – The upsell happens gradually
  • 07:43 – Showpad uses Stripe for credit card payments
  • 07:58 – Showpad also uses Salesforce, NetSuite and HubSpot
  • 08:12 – Showpad currently has 997 customers
  • 08:30 – ARR is a bit over $20M
  • 08:35 – Showpad has a big group of SMB customers
  • 09:05 – Showpad only has annual contracts so they’re not focused on MRR
  • 09:15 – ARR goal this year is around $25-28M
  • 09:48 – Team size is 220 with 30 sales people
  • 10:00 – Showpad was launched in 2012
  • 10:11 – Showpad was bootstrapped for 2 years
    • 10:35 – The “bootstrapping mentality doesn’t get you to scale”
  • 10:45 – Paid advertising spend was around $60-70K in a month
    • 10:58 – Consists mostly of AdWords and LinkedIn ads with some Facebook ads
  • 11:25 – Total money raised is $61M and the last round was a series C
  • 12:15 – Showpad has been very lucky with their investors
  • 12:58 – Showpad will be Louis’ first financial win
  • 13:07 – In The Pocket is a profitable mobile agency
  • 13:51 – Gross annual churn in 2016 was 6%
  • 14:15 – As a platform matures, churn risk increases
  • 14:42 – Net churn is around 30-35% in revenue
  • 15:03 – Showpad has lost around 1-2 customers since they started
  • 15:33 – CAC for the key cohort
    • 15:42 – The golden rule for SaaS is for every dollar spent, you should get a quarter in return within 12 months
    • 16:00 – Showpad currently has a 12-month payback
  • 17:02 – LTV is around 5 years
    • 17:28 – LTV in dollars is around $250K over 5 years
  • 17:52 – Showpad is always aggressive with their targets
  • 18:50 – Showpad has been adding dynamic mind maps to their product
  • 19:33 – Most enterprise customers have been spending money on agencies to build a custom navigation presentation
    • 19:48 – This is already a part of what Showpad offers
  • 20:14 – The best marketing strategy for Showpad is events sponsorships
    • 20:40 – Showpad has rented party buses for their customers in Europe
  • 21:12 – Gross margin is 85%
  • 21:25 – Revenue target by the end of 2017 is $28M to 30M
  • 22:30 – 2016 revenue was $16.5M
  • 24:21 – The Famous Five

3 Key Points:

  1. Marketing teams should coordinate with sales teams to find how they can make that successful deal.
  2. Don’t discount a marketing strategy that may seem unconventional; it could be the very strategy that works.
  3. Reach for the best—set an aggressive target for your company.

Resources Mentioned:

  • Simplero – The easiest way to launch your own membership course like the big influencers do but at 1/10th the cost.
  • The Top Inbox – The site Nathan uses to schedule emails to be sent later, set reminders in inbox, track opens, and follow-up with email sequences
  • GetLatka – Database of all B2B SaaS companies who have been on my show including their revenue, CAC, churn, ARPU and more
  • Klipfolio – Track your business performance across all departments for FREE
  • Hotjar – Nathan uses Hotjar to track what you’re doing on this site. He gets a video of each user visit like where they clicked and scrolled to make the site a better experience
  • Acuity Scheduling – Nathan uses Acuity to schedule his podcast interviews and appointments
  • Host Gator– The site Nathan uses to buy his domain names and hosting for the cheapest price possible
  • Audible– Nathan uses Audible when he’s driving from Austin to San Antonio (1.5-hour drive) to listen to audio books
  • Show Notes provided by Mallard Creatives