🔆 Creating network effects to spark growth

One quote from my interview with Matt Ostanik, CEO of Grateful, earlier this week represents a valuable lesson worth reflecting upon. 

We work with socially good businesses that use our technology to do customer-giving programs. That means they commit to donating a portion or % of each purchase to charities their customers pick.

For the customers that participate in this type of customer giving program, their customers spend 17% more with their businesses. So it pays for itself over time. The company grows more. They’re doing tremendous social good helping 1000s of local charities across the country. So it’s a win-win across the board.

Here’s the thing:

The principle underpins the network effect of his business: It is created by amplifying the value his customers can create for their customers. So it’s not about efficiency – but about differentiation. It’s about making everybody win in a three-lever flywheel: their customers, the charities their customers love, and their business.

It reminds me of a campaign I did back in the 90s at Unit4 that involved our prospects (for SME accounting systems), their accountant, and our VAR channel. It became a national buzz. 

Remember, remarkable saas companies aim to be different, not just better.

Listen to the interview with Matt (the quote starts at the 10.05 mark)

 

Question for you to reflect upon

How can you use this concept to put a three-lever flywheel in motion in a way that’s relevant to your SaaS business? 

 

Be Remarkable

Like this message?

Every day I send out a short 2 min reflection on shaping a B2B SaaS business no one can ignore. Join the 1,000+ subscribers that have become fans. 

Not sure? Browse the archive

About the author

Sales Pitch

Ton Dobbe is a former B2B software product marketer who's on a mission to save mission-driven SaaS CEOs from the stress of 'not enough' traction. He's the author of The Remarkable Effect, the host of the Tech-Entrepreneur on a Mission podcast, and writes a daily newsletter on the secrets to mastering predictable traction.