B2B Stack Manager: From Product Discovery to Revenue

This article shows how I led the creation of a Software Management Platform, from Product Discovery to Delivery, which increased the company's ARR in 6 figures even before launch.

B2B Stack is a dedicated portal designed to assist businesses in the discovery, comparison, purchase, and review of B2B software. It operates similarly to well-known platforms like G2 and Capterra but with a specific focus on the Brazilian market.

In essence, B2B Stack offers its services to both buyers and sellers, with free access for users. Premium features are also available for sellers who seek additional benefits.

B2B Stack faced a challenge where the number of buyers significantly outweighed the number of sellers on its platform. This disparity indicated that a substantial portion of its user base couldn't be effectively monetized, leading to a considerable gap in revenue opportunities.

Addressing this issue became a primary objective, highlighted during my first week in the company, in December 2022.

The core objective was to create a new product tailored to software buyers, enabling the monetization of the largest user segment on the platform. This goal would represent a critical step toward improving the company's financial performance.

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In order to tackle the challenge of monetizing the largest segment of our users, I knew it was crucial to understand their needs and pain points. We initiated a series of secondary research to gain valuable insights. Here's a breakdown of what we did and what we discovered:

In-depth research on market trends, potential consumer preferences, and the most pressing pain points users faced when dealing with B2B software subscriptions. The findings were eye-opening:

Complex Subscription Management: We discovered that as companies grow in size, the management of software subscriptions becomes increasingly chaotic. The company's size could also be used to identify ICP;

Remote Work Impact: With the rise of remote work, we noticed a significant uptick in the purchase of software tools. The need for streamlined software procurement and management was more evident than ever;

Financial Control: Growing companies, facing greater difficulty in securing investments, were placing a higher emphasis on financial control. This led them to seek solutions that could help them optimize software expenses;

End-to-End Solution: Software purchase (B2B Stack's focus before the SMP) is just one part of a broader journey, which included subscription management. The SMP integrates quite well with B2B's offerings.

Software Management Platforms (SMPs): SMPs, also known as Software Management Platforms, were gaining traction in the industry. These platforms aimed to streamline software procurement, tracking, and management.

SaaSOps: The emerging field of SaaSOps (Software as a Service Operations) was becoming increasingly relevant, emphasizing the need for efficient technology operations.

Our investigation into existing solutions revealed a notable contrast between international and national offerings:

International SMPs: We found several well-established international SMPs, such as Torii, Zluri, BetterCloud, and G2 Track, providing comprehensive solutions for software management.

Lack of Local SMPs: Surprisingly, there were no national-level SMPs available in Brazil at the time, leaving a gap in the market that we were well-positioned to fill.

These insights formed the foundation of our strategy and product development, guiding us towards creating a solution that would not only address user pain points but also cater to the unique needs of the Brazilian market.

In our pursuit of a deeper understanding of the challenges faced by B2B software users in Brazil, we conducted a series of insightful user interviews with C-level executives across a wide spectrum of industries and company sizes. Here's an overview of our user interview process and the findings we unearthed:

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Our user interviews were strategically structured to encompass C-level executives from various sectors and company sizes, aligning with the segments identified during our Desk Research phase.

We engaged in conversations with a total of eight participants, representing e-commerce, sales, marketing, and technology sectors.

These executives hailed from companies with employee counts ranging from 30 to a substantial 8000.

Confirmation of Market Scenario: Our discussions with these C-level executives confirmed that the challenges faced by B2B software users in Brazil mirrored the broader global landscape.

Positive Product Feedback: Encouragingly, several of the interviewed executives expressed strong interest in our product. Some even went a step further, becoming beta testers to actively contribute to its refinement. This early engagement also revealed their eagerness to explore potential partnerships, indicating a promising avenue for future growth.

These valuable insights from user interviews served as a pivotal point of reference as we charted our product development journey. With a clearer understanding of our users' perspectives and needs, we were better equipped to create a solution that not only met their expectations but also exceeded them.

After the interviews, we invested time and effort in developing a comprehensive persona for our product. This persona was designed from the motivations, pain points, and needs we had gathered through the previous user interviews. Here's a look at the process and the outcomes it yielded:

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1. Persona Development: We crafted a well-defined persona that encapsulated the characteristics and traits of our ideal user. This persona was an amalgamation of the insights we gained from user interviews, encompassing motivations, pain points, and specific needs.

2. Outcomes: Creating this persona had a profound impact on our product development strategy. Here's how it played out:

Feature Development: Armed with a deep understanding of our persona, we were able to develop features that directly addressed their pain points and needs. This approach ensured that our product was not just functional but highly relevant to our target audience.

Guidance for Sales Team: Our persona became an invaluable resource for our sales team. It allowed them to better prepare for sales calls, tailoring their pitches to align with the persona's preferences and pain points.

Guidance for Marketing: The persona is instrumental in crafting targeted campaigns that resonate with potential customers. Understanding our persona enabled us to speak directly to their needs and motivations.

Simultaneous Discovery and Technical Study: While the product discovery phase was in full swing, our development team was engaged in conducting technical studies.

Prioritization of Features: With a growing list of potential features in hand, we united as a team to prioritize them effectively. This involved a careful assessment of each feature's potential impact on addressing the pain points of our persona and the development effort required.

Defining MVP Features: We identified the core features that were pivotal to the Minimum Viable Product (MVP). These features were deemed essential for our product's initial launch, ensuring that it met the basic needs of our target audience.

Post-MVP Development: Beyond the MVP, we outlined a roadmap for the development of additional features. These were features that, while valuable, could be introduced in subsequent phases to enhance the product's value even further.

The Impact/Effort Matrix became our guiding compass in this decision-making process. Features that scored high on both impact and low on effort were fast-tracked for inclusion in the MVP, ensuring that our initial product release addressed the most pressing needs of our users. Features with a lower immediate impact or higher development effort were slated for post-MVP development, allowing us to maintain a balanced and efficient development timeline.

Our development roadmap was a structured blueprint that mapped our path from the MVP stage to a more consolidated product. This plan was crucial for maintaining focus, ensuring timely milestones, and aligning our efforts.

The MVP intentionally contained fewer integrations and automation features and relied more on manual inputs, which would eventually be automated. However, to mitigate risks and expedite our product launch, a dedicated team member took on the task of manually managing these inputs for each client during the initial stages of our product.

This approach allowed us to:

Accelerate Launch: By manually handling inputs, we were able to minimize delays that could have resulted from the development of complex automations.

Risk Reduction: Manual management in the early stages allowed us to validate our product with real users, identifying any issues or areas for improvement before committing to full automation.

Our roadmap was a dynamic document that evolved as we progressed, adapting to user feedback growing understanding of the persona.

We extended the existing B2B Stack style guide to encompass the specific components required for the B2B Stack Manager. This involved creating a unified design language that was consistent with our brand, ensuring a seamless and cohesive user experience.

High-fidelity prototypes were crafted to represent the MVP. These prototypes provided a detailed visual and interactive representation of our product, allowing us to visualize the user interface and functionality before actual development.

The expanded style guide became an invaluable asset, offering agility and consistency. It provided the foundation for swift and consistent prototyping of future roadmap deliveries.

The high-fidelity prototypes were not merely internal use but were also tested with beta testers. This user-centric approach brought several benefits:

User Feedback: Beta testers had the opportunity to interact with and provide feedback on the prototypes. Their insights helped identify potential pain points, refine user flows, and enhance the overall user experience.

Testing and Refinement: Through testing, we identified areas for improvement, which were then refined in subsequent iterations. This iterative process allowed us to fine-tune our product design to align with user preferences and needs.

Our journey from product discovery to product launch has been marked by significant achievements, driven by a strong commitment to understanding user needs, innovative solutions, and strategic networking. Here's a summary of the results and key takeaways:

The product discovery process proved to be instrumental in the development of a product that resonates with our target audience. By deeply understanding user preferences and pain points, we mitigated risks and made informed decisions throughout the development journey.

Networking played a pivotal role in our success. Establishing connections with C-level executives, who can be challenging to reach, was made possible through our network of investors. This access to decision-makers allowed us to gather invaluable insights, validate our product, and shape it to meet the real needs of the market.

Our Minimum Viable Product (MVP) didn't just mark a product launch; it marked a significant increase in the company's Annual Recurring Revenue (ARR). The MVP quickly yielded six-digit revenue growth (BRL), reinforcing the product's value and market demand.

4. Expanding Sales: Building on the success of the MVP, B2B Stack recently expanded the availability of the B2B Stack Manager to the public. This transition marked a significant milestone, underlining the product's readiness for a broader market.

In conclusion, our journey from product discovery to public offering has been marked by unwavering dedication to understanding our users, fostering vital connections, and delivering a product that effectively addresses their needs. The MVP's rapid success serves as a testament to the value we've created.