In this episode of Growth Vault, the hosts discuss their predictions for the e-commerce and B2B SaaS market in 2024. They explore the role of AI in value creation and extraction, emphasizing the importance of AI as a multiplier and the need for thoughtful implementation. The hosts also discuss the impact of elections on the market and the rise of M&A in the industry. They delve into the difference between product and marketing, focusing on value creation and extraction. The episode concludes with a discussion on the middle ground of value realization. The conversation explores the importance of user experience and the undervaluation of experience in the retention cycle. The challenges of building relationships and the friction of relationship-based interactions are discussed. Clear communication and setting expectations early are highlighted as crucial factors. The conversation also delves into the qualitative vs quantitative approach and the role of marketing in creating value for users and product in generating business impact. The distinction between attention and intention is explored, as well as the challenges of generating demand and capturing it. The conversation concludes with the importance of moving from attention to intention. In this conversation, the speakers discuss the importance of qualifying leads and the tactics they use to do so. They emphasize the need for a simple and effective qualification process to ensure that the right customers are targeted. They also highlight the value of using data to inform the qualification process and make informed decisions. The speakers share their experiences with different qualification methods and the criteria they use to determine if a lead is a good fit. They stress the importance of not pursuing all revenue and being selective in choosing customers. The conversation concludes with closing remarks and plugs for various resources.TakeawaysAI is a multiplier and can drive value creation and extraction when implemented thoughtfully.The e-commerce and B2B SaaS market is expected to experience growth in 2024, with a focus on value creation and contribution margin.The impact of elections on the market may bring uncertainty and increased ad spending, leading to higher CPMs.The market is likely to see more consolidation and M&A activity, with private equity becoming a source of capital for e-commerce and DTC businesses.The distinction between value creation and extraction is important, with marketing focused on creating value in the market and product focused on extracting value from customers. Having a simple and effective qualification process is crucial for targeting the right customers.Using data to inform the qualification process can lead to more informed decisions.Not all revenue is good revenue, and it's important to be selective in choosing customers.Being willing to say no to customers who are not a good fit can save time and resources.Chapters00:00Introduction and Excitement for Season 200:332024 Predictions for E-commerce and B2B SaaS03:11The Role of AI in Value Creation and Extraction09:04The Impact of Elections on E-commerce12:51The Future of AI and the Need for New Social Contracts15:14Market Rip and the Rise of M&A19:46The Difference Between Product and Marketing: Value Creation and Extraction27:10Discussion on Value Creation and Extraction30:13The Middle Ground: Value Realization34:41The Importance of User Experience35:15Undervaluing the User Experience35:51The Impact of Experience on Retention36:19Challenges in Building Relationships37:37The Friction of Relationship-Based Interactions39:16The Importance of Clear Communication and Expectations40:16The Qualitative vs Quantitative Approach43:16Creating Value for Users vs Business Impact46:19The Role of Marketing and Product49:45Attention vs Intention52:01Generating Value and Capturing Demand57:39The Disconnect Between Value Creation and Demand01:03:06Moving from Attention to Intention01:10:33Qualifying Leads01:12:30Using Data for Qualification01:13:47Qualification Process01:15:31Differentiating Customer Segments01:18:17Scoring and Qualification01:19:14Defining MQL and SQL01:20:13Refining the Qualification Process01:23:22Sophistication in Scoring01:25:18Not All Revenue is Good Revenue01:26:16Saying No to Customers01:28:48Customer Margin01:31:20Closing Remarks and PlugsFollow Rabah on X or LinkedInFollow Aaron on X or LinkedInFollow Chase on X or LinkedInFollow Growth Vault on X
