How Hootsuite went from flatline to $400m in ARR

CEO Irina Novoselsky took HootSuite from a flatline revenue to $400 million ARR by successfully pivoting its strategy to capture the emerging Gen-Z market for the B2B product.

The New B2B Buyer Landscape

By 2025, 75% of all buyers will be either Millennials or Gen Z. This dramatic shift means traditional SaaS sales playbooks, built by older generations for older generations, are becoming obsolete.

The way we sell B2B software is changing. Gen Z, the generation born between 1997 and 2012, is rapidly becoming the dominant force in B2B purchasing decisions. This generation, raised on the internet and social media, has unique buying habits that traditional sales tactics simply can't match.

The Death of Traditional Sales Tactics

Traditional sales methods are failing because:

• Cold calls and emails see 50% lower response rates.

• Gen Z prefers self-service over demos.

• They trust peer reviews and community feedback over company messaging.

• 2 out of 3 want a fully digital purchasing experience.

• Nearly 50% of them use ad blockers.

Understanding Gen Z's Buying Behavior

Gen Z displays unique characteristics that challenge conventional sales approaches:

• Digital Natives yet Phone-Shy: They were born with smartphones but still prefer texting over calls.

• AI-Savvy, Human-Centric: Uses AI for work but values human connection and authenticity.

• Influential Insiders: 62% of Gen Z employees influence B2B buying decisions.

• Social-First Searchers: 65% of their B2B searches start on Social Media, not Google.

• Self-Directed Shoppers: Gen Z completes 60% of their buying process before even talking to sales.

• Content Consumers: Consumes at least 13 pieces of content before engaging with sales.

Gen Z don't want to be sold to; they want to be in control.

The New Sales Playbook

To succeed with Gen Z buyers, companies must:

1. Create self-service demo experiences

2. Build strong social media presence

3. Develop authentic content across multiple platforms

4. Enable complete digital purchasing journeys

5. Leverage social selling (which can reduce Customer Acquisition Cost by 20%)

To succeed, adapt to these 4 stages:

1. Map the research phase - Understand where your Gen Z buyers gather information. Then make sure your content is discoverable on social media, review sites, and through B2B influencers.

2. Leverage employee advocacy - Turn employees into authentic brand ambassadors.

3. Remove friction - Design buying experiences that don't require human interaction. Offer a self-service buying journey.

4. Build social proof - Maintain active presence on social platforms. Actively engage on social media, especially as a CEO.

The Future Is Social Selling

Social media allows you to connect with potential customers and build trust. Studies show that social selling can increase sales and decrease customer acquisition costs.

The future of B2B sales belongs to those who adapt to Gen Z's preferences. Companies must shift from controlling the sales process to empowering buyers with self-directed journeys. As Irina says, "Adapt or get ghosted."

Credits to Irina Novoselsky for giving this talk at SaaSOpen.

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