Software selection that drives results | Founder @ Evale | Author @ CommerceOperations
🚨 B2B platforms are dominating financially, but they're not winning the satisfaction game. In my last post, I highlighted how platforms are crushing point solutions financially: 📈 Platforms command 2.3x higher revenue multiples (8.2x vs 3.5x) 📈 Platforms are growing faster (18% vs 11% YoY) 📈 Platforms have better net expansion rates (113% vs 101%) But here's the twist: I analyzed G2 rankings and scores of 79 public SaaS companies. Here's what the data reveals: • Platforms: 5,672 avg. reviews, 4.40 avg. score • Point Solutions: 3,274 avg. reviews, 4.41 avg. score Surprising, right? Despite market dominance, platforms aren't winning the satisfaction game. Reasons might be: • 𝗙𝗲𝗮𝘁𝘂𝗿𝗲 𝗕𝗹𝗼𝗮𝘁: Platforms often suffer from the "kitchen sink" syndrome, cramming in every conceivable feature. This can lead to cluttered interfaces and overwhelming complexity. • 𝗝𝗮𝗰𝗸 𝗼𝗳 𝗔𝗹𝗹 𝗧𝗿𝗮𝗱𝗲𝘀, 𝗠𝗮𝘀𝘁𝗲𝗿 𝗼𝗳 𝗡𝗼𝗻𝗲: Platforms may offer adequate solutions across multiple functions, but rarely excel in any single area. Point solutions can focus all their resources on perfecting a specific functionality. • 𝗦𝗹𝗼𝘄𝗲𝗿 𝗜𝗻𝗻𝗼𝘃𝗮𝘁𝗶𝗼𝗻 𝗖𝘆𝗰𝗹𝗲𝘀: Large platform providers typically have more complex organizational structures, slowing down the implementation of user feedback and new features. • 𝗜𝗻𝘁𝗲𝗴𝗿𝗮𝘁𝗶𝗼𝗻 𝗖𝗵𝗮𝗹𝗹𝗲𝗻𝗴𝗲𝘀: Users frequently encounter unexpected compatibility issues or clunky workflows when moving between different parts of the platform. • 𝗖𝘂𝘀𝘁𝗼𝗺𝗶𝘇𝗮𝘁𝗶𝗼𝗻 𝗟𝗶𝗺𝗶𝘁𝗮𝘁𝗶𝗼𝗻𝘀: Platforms often provide a one-size-fits-all solution that may not align perfectly with specific business needs. 🤔 Given the surprising satisfaction parity between platforms and point solutions, how can buyers navigate this complex landscape? • 𝗟𝗼𝗼𝗸 𝗕𝗲𝘆𝗼𝗻𝗱 𝗠𝗮𝗿𝗸𝗲𝘁 𝗦𝗵𝗮𝗿𝗲: Our data shows that popular platforms don't necessarily deliver higher satisfaction. Consider both established platforms and innovative point solutions. • 𝗔𝘀𝘀𝗲𝘀𝘀 𝗬𝗼𝘂𝗿 𝗦𝗽𝗲𝗰𝗶𝗳𝗶𝗰 𝗡𝗲𝗲𝗱s: Evaluate which functionalities are essential. A platform might seem attractive, but a point solution could better serve your core requirements. • 𝗣𝗿𝗶𝗼𝗿𝗶𝘁𝗶𝘇𝗲 𝗜𝗻𝘁𝗲𝗴𝗿𝗮𝘁𝗶𝗼𝗻 𝗖𝗮𝗽𝗮𝗯𝗶𝗹𝗶𝘁𝗶𝗲s: For platforms, ensure seamless integration between modules. For point solutions, verify their ability to integrate with your existing tech stack. • 𝗖𝗼𝗻𝘀𝗶𝗱𝗲𝗿 𝗧𝗼𝘁𝗮𝗹 𝗖𝗼𝘀𝘁 𝗼𝗳 𝗢𝘄𝗻𝗲𝗿𝘀𝗵𝗶𝗽: Look beyond the sticker price. Platforms may offer bundled savings, but point solutions might provide better value for your specific needs. • 𝗔𝗻𝘁𝗶𝗰𝗶𝗽𝗮𝘁𝗲 𝗙𝘂𝘁𝘂𝗿𝗲 𝗡𝗲𝗲𝗱𝘀: Consider your company's growth trajectory. Will a platform's scalability be crucial, or can point solutions adapt to your evolving requirements?