ChatGBT and Marketing Strategy... Ummmmm Yikes. Or Maybe Not.

So…. I’ve just been playing (seriously, this is fun, y’all!) with a few different things but wanted to see what I could do with prompting a marketing strategy conversation with CGPT. Last night, I decided to see how it can help me develop growth strategies and marketing guidance for a hypothetical HR benefits management SaaS company. And though all of the responses it gave seem pretty obvious to me as someone who’s done this for a while, CGPT can be an excellent tool for generating new ideas and exploring different approaches to marketing and growth for those who are less familiar with marketing such as founders or small business owners whose expertise is in another discipline and doesn't have the necessary expertise on staff.

For example, when I asked CGPT about growth opportunities for my hypothetical SaaS company, it suggested targeting additional customer segments beyond HR leaders and finance managers. Similarly, when I asked about the best marketing channels for building awareness with HR leaders, CGPT suggested leveraging LinkedIn and email marketing. Ok, duh.

CGPT is not a replacement for a human strategist. While it can generate new ideas and offer valuable insights if prompted correctly, it's not capable of the same level of nuance, creativity, and strategic thinking that a human strategist can provide. At least not yet. Ultimately, a human strategist is better equipped to assess the unique needs and challenges of a business and to develop a customized plan that takes into account their specific goals and constraints.

As with any tool, the quality of the output is only as good as the quality of the input. In other words, the more specific and detailed your prompts are, the more helpful and relevant the answers will be. CGPT is only as good as the data it has been trained on.?

Here is my conversation:

Your role is a business strategist with 20 years of experience in growing SaaS companies. Do you understand?

Yes, I understand. As a business strategist with 20 years of experience in growing SaaS companies, my role would involve providing guidance and direction to help these companies succeed and achieve their goals. This could include developing and implementing strategies for acquiring and retaining customers, optimizing pricing and packaging, identifying new markets and opportunities, and enhancing product development and innovation, among other things.

Your task is to review my business model and suggest strategies for growth. Do you understand?

Yes, I understand. As a business strategist, my role would be to review your current business model, identify areas for improvement, and suggest strategies for growth that could help your business achieve its objectives. This could involve analyzing your target market, identifying competitive advantages, assessing financial performance, and evaluating operational efficiencies, among other things. Based on this analysis, I would recommend strategies and tactics that could help your business grow and achieve long-term success.

My SaaS company provides an end-to-end platform for managing HR benefits and payroll. Our target customers are HR leaders and heads of finance for small and medium-sized businesses in the US.? The market was $15.59 Bn in 2020 & is projected to reach $33.57 Bn by 2028, growing at a CAGR of 10.10% from 2021-28. We currently have a 3-person salesforce, just implemented Account Based Marketing, and are looking to grow from our current ARR of $10m to $100m in the next five years.?

Please suggest growth opportunities we could use to get to our goal of $100m in the next five years.??You can ask me questions to understand exactly what I need.

Thank you for providing this background information. To help you achieve your goal of reaching $100m in ARR in the next five years, here are some growth opportunities that you could consider:

1. Expand your target market: While your current focus on small and medium-sized businesses in the US is a good starting point, there may be opportunities to expand into other geographies or to target larger businesses. This could involve conducting market research to identify potential new markets and developing a strategy to enter them.
2. Cross-sell and upsell: Once you have established a relationship with a customer, you could consider cross-selling or upselling additional services to them. For example, you could offer additional HR-related services or expand your payroll offerings to include more complex services that larger businesses may require.
3. Invest in product development: As the market for HR benefits and payroll continues to grow, there may be opportunities to develop new and innovative products that can differentiate your company from competitors. This could involve investing in research and development to create new features or functionality that address the evolving needs of your customers.
4. Focus on customer retention: In addition to acquiring new customers, it is important to focus on retaining existing customers. This could involve implementing a customer success program to ensure that your customers are achieving their desired outcomes with your platform, and that they are receiving the support they need to be successful.
5. Expand your sales and marketing efforts: While you have recently implemented Account-Based Marketing, there may be opportunities to further expand your sales and marketing efforts. This could involve hiring additional salespeople, investing in new marketing channels, or developing partnerships with other companies to help drive new leads and sales.

To better understand your specific needs and opportunities, I have a few questions:

1. What is your current customer acquisition cost (CAC) and customer lifetime value (LTV)? Understanding these metrics can help identify where you can improve your customer acquisition and retention strategies.
2. What is your current churn rate? Knowing this metric can help identify where you may need to focus your customer retention efforts.
3. What is your current competitive advantage? Understanding your unique value proposition and competitive advantages can help identify opportunities for differentiation and growth.
4. Are there any specific market trends or regulatory changes that could impact your business in the next five years? Understanding these trends can help you stay ahead of the curve and position your company for long-term success.

1. CAC = $300 and LTV = $50,000

2. Churn rate is 2%

3. Value prop = Our platform sees higher employee adoption and compliance than any other platform in the market, making it easier for HR leaders to manage their employee benefits. We also save most companies between 10% and 23% in costs.

4. With more employees being remote due to the impact of COVID, HR leaders also need to stay abreast of state-by-state policy and legislature affecting employee benefits, workers comp, etc. It would be a huge opportunity if our platform could help them do that.

Thank you for sharing this information. Based on this, here are some additional growth opportunities you could consider:

1. Improve customer acquisition efficiency: Your current CAC is relatively low compared to your LTV, which is a positive sign. However, there may be opportunities to further optimize your sales and marketing efforts to improve customer acquisition efficiency. For example, you could experiment with different marketing channels or sales strategies to see which ones generate the most leads and customers at the lowest cost.
2. Increase customer retention: Your current churn rate of 2% is already quite low, but there may be opportunities to further reduce churn by providing more personalized customer support or offering additional value-add services. For example, you could offer customized training or consulting services to help customers get more value from your platform.
3. Expand your platform's capabilities: With the shift to remote work due to COVID-19, there may be an opportunity to expand your platform's capabilities to help HR leaders manage employee benefits and compliance across different states. This could involve investing in new features or functionality that help HR leaders stay up to date with state-by-state policies and legislation affecting employee benefits and workers' compensation.
4. Develop strategic partnerships: There may be opportunities to develop strategic partnerships with other companies in the HR and payroll space that could help drive new leads and sales. For example, you could partner with accounting or benefits consulting firms to offer your platform as part of their service offerings.
5. Expand into new verticals: While your current focus on HR benefits and payroll is a good starting point, there may be opportunities to expand into other related verticals, such as talent management or workforce analytics. This could involve conducting market research to identify potential new markets and developing a strategy to enter them.

Overall, I would recommend focusing on a combination of customer acquisition, retention, and platform expansion strategies to help achieve your goal of reaching $100m in ARR in the next five years.

What does the competitor landscape look like in my industry?

The HR benefits and payroll software market is highly competitive, with many established players as well as newer startups competing for market share. Some of the major competitors in the market include:

1. ADP - A large, established player in the HR and payroll space, with a range of products and services for businesses of all sizes.
2. Paychex - Another well-known provider of HR and payroll software and services, with a focus on small and medium-sized businesses.
3. Gusto - A newer entrant in the market, Gusto has gained a strong following among startups and small businesses for its user-friendly platform and affordable pricing.
4. Zenefits - A cloud-based HR software provider that offers a range of tools for managing benefits, payroll, and compliance.
5. BambooHR - A popular HR software provider that offers a range of tools for managing employee data, performance, and benefits.
6. Rippling - A newer player in the market that offers an all-in-one HR and IT platform for managing employee data, payroll, and IT access.
7. TriNet - A professional employer organization (PEO) that offers a range of HR and payroll services for small and medium-sized businesses.

These are just a few examples of the many companies competing in the HR benefits and payroll software market. As you can see, the market is highly competitive, with a mix of large, established players and newer startups vying for market share. To succeed in this market, it will be important to differentiate your platform from the competition and focus on delivering unique value to your target customers.

Which of these competitors do a good job of differentiating themselves in the market?

Each of the competitors I mentioned has its own unique value proposition and approach to differentiating itself in the market. Here are a few examples:

1. Gusto - Gusto focuses on making payroll and benefits simple and easy to manage for small businesses. Their platform is known for its user-friendly interface and affordable pricing, which helps to attract and retain small business customers who may not have a dedicated HR team.
2. Zenefits - Zenefits takes a data-driven approach to HR management, using analytics and insights to help businesses make better decisions about their employees. They also offer a range of tools for managing benefits, payroll, and compliance, which helps to streamline HR processes and save businesses time and money.
3. BambooHR - BambooHR is focused on helping businesses manage their employees' entire lifecycle, from onboarding to offboarding. They offer a range of tools for managing employee data, performance, and benefits, which helps to improve the overall employee experience and retention.
4. Rippling - Rippling takes an all-in-one approach to HR and IT management, offering tools for managing employee data, payroll, and IT access in a single platform. This helps businesses to simplify their IT and HR processes and save time and money.

Overall, each of these competitors has its own unique approach to differentiating itself in the market. To succeed in this competitive landscape, it will be important for your company to identify your own unique value proposition and focus on delivering that value to your target customers. This could involve conducting market research to understand your customers' pain points and developing a product roadmap that addresses those pain points in a unique and compelling way.

Beyond HR leaders and finance managers, what other segments should I target?

Expanding your target market beyond HR leaders and finance managers could help you tap into new sources of revenue and accelerate your growth. Here are a few potential segments you may want to consider targeting:

1. Small business owners - Many small business owners wear multiple hats and may not have the time or expertise to manage HR and payroll tasks on their own. By targeting this segment, you can offer an easy-to-use platform that helps them manage these tasks more efficiently and effectively.
2. Employees - While your platform is designed for HR leaders and finance managers, you could also consider targeting employees themselves. By offering a user-friendly interface and empowering employees to manage their own benefits and payroll information, you can help improve employee engagement and retention.
3. Enterprise businesses - While your current focus is on small and medium-sized businesses, there may be opportunities to expand into the enterprise market as well. By offering a scalable, enterprise-level platform that meets the needs of larger organizations, you can tap into a larger customer base and potentially generate more revenue per customer.
4. Professional employer organizations (PEOs) - PEOs are organizations that provide outsourced HR and payroll services to small and medium-sized businesses. By partnering with PEOs and offering your platform as a value-added service, you can tap into a new distribution channel and reach more potential customers.

These are just a few potential segments you could consider targeting. Before expanding your target market, it's important to conduct market research to understand the needs and pain points of these new segments and develop a targeted marketing and sales strategy to reach them.

What marketing channels are best for building awareness with HR leaders?

There are several marketing channels you could consider for building awareness with HR leaders:

1. LinkedIn Advertising: LinkedIn is a professional networking site that is widely used by HR professionals. LinkedIn offers several advertising options, including sponsored content and sponsored InMail, that can help you reach HR leaders with targeted messaging.
2. Content Marketing: Creating high-quality content that addresses the pain points and challenges of HR leaders can be a powerful way to build awareness and credibility. You could consider creating blog posts, white papers, case studies, and other types of content that showcase your expertise and highlight the value of your platform.
3. Event Marketing: Attending and sponsoring HR events and conferences can be a great way to get your brand in front of HR leaders. These events provide opportunities to network with potential customers, showcase your platform, and share insights and thought leadership on HR and payroll management.
4. Referral Marketing: Referral marketing involves incentivizing existing customers to refer new customers to your platform. Offering incentives like discounts, free services, or other perks can encourage existing customers to recommend your platform to their peers in the HR community.
5. Influencer Marketing: Partnering with influential HR thought leaders and bloggers can help you reach a wider audience of HR leaders. By collaborating with these influencers, you can tap into their credibility and expertise to build awareness and credibility for your platform.

It's important to note that the effectiveness of each of these channels will depend on your specific goals, target audience, and budget. You may need to test and experiment with different channels to determine what works best for your business.

What would be good topics that would position the company as a thought leader in our industry?

Positioning your company as a thought leader in the HR and payroll industry can help build credibility and trust with potential customers, and differentiate your platform from competitors. Here are a few topics that could help you establish thought leadership:

1. Compliance: Compliance is a complex and ever-changing topic in the HR and payroll industry, and one that many HR leaders struggle with. You could create content that educates HR leaders on compliance best practices and emerging trends, and offer advice on how to stay ahead of changing regulations.
2. Remote work: With the shift to remote work due to the pandemic, many HR leaders are grappling with new challenges related to managing distributed workforces. You could create content that addresses these challenges, offering tips on how to manage remote employees, ensure compliance, and maintain employee engagement and productivity.
3. Employee engagement: Employee engagement is a key driver of productivity, retention, and overall business success. You could create content that explores strategies for improving employee engagement, such as offering flexible work arrangements, investing in employee development, and creating a positive company culture.
4. Benefits and wellness: Employee benefits and wellness programs are critical for attracting and retaining top talent. You could create content that highlights best practices for designing and implementing effective benefits and wellness programs, and offer insights on emerging trends in this area.
5. Payroll management: Payroll management is a core function of HR, and one that can be time-consuming and complex. You could create content that explores emerging trends and best practices in payroll management, and offer advice on how to streamline processes and reduce errors.

These are just a few potential topics that could help position your company as a thought leader in the HR and payroll industry. By creating high-quality, informative content on these and other relevant topics, you can build credibility and trust with potential customers and establish your platform as a go-to resource in the industry.

So there is a ton AI can do to help us understand our industries, our markets, our competitors. But consultants and strategists, have no fear. The model is only as good as the inputs and the market still needs us!