How BRITech Global Grew to 7 Products and 110% NDR with a Multi-Product Expansion Strategy (Interview with CEO Yuryi Ferber)

Introduction: Yuryi Ferber and BRITech Global

Yuryi Ferber

00:00Thanks. Thanks for having me. My

00:05name is Yuryi Ferber. I am CEO and Founder of britech. Britech is a SaaS for investment management.

Why Multi-Product Expansion Drives Revenue Growth

Yuryi Ferber

00:16So over the next twenty minutes, I'm going to show you how and why you should expand your product from a single to multi product. So I'm gonna talk about value chain adjacency,

00:39how to do it, if you can build the product, you can buy it, or you can partner now and buy later, and the importance of segmentation into customer support and customer success as well. So this is our this is my company revenue growth over the last five years. And this is happening only because we also have multiple products.

01:12By the end, I'm going to show the impact in the revenue growth of having multiple products. Of course,

Staying in the Same Ideal Customer Profile

Yuryi Ferber

01:26so important very important when you expand your product road map. To build your next products, of course, you start with one product. When you go to the next product, very important if you stay in the same ideal customer profile because it's it it will be easier to to sell to the same client than to acquire a new client. It's always is. So staying in the same customer ideal customer profile, it will allow you to upsell to

Product Lock-In and Churn Mitigation

Yuryi Ferber

02:02that customer and also will be cheaper, and you are going to have more retention. Why why you have more retention? Because when you have multiple products, same client using your multiple products, you start locking up your clients. So usually, one product consumes data from another product, and this creates a lockup, and it's great for mitigate your churn. And there are some effects, of course, that I'm going to talk later.

From 1 Product to 7 Products in 8 Years

Yuryi Ferber

02:46In our case, we start back in eight years ago, back in with one product for one customer profile. And nowadays, we have, seven products for seven different profiles and serving like 30 different use cases for this customer base. So this is very interesting because it creates a lot of opportunities to monetize your product portfolio.

03:25Let's jump into Section two.

Three Ways to Expand Your Product Portfolio

Yuryi Ferber

03:28There are many ways to build to expand your product portfolio. Of course, you can use the traditional way of building. As probably did in the first product, you have your CTO, you have your team of software engineers, and you just build a new product. Of course, you have to

03:53pay attention to to things like product market fit, as my my friend earlier in this session just to show you. So product market fit is is one thing that you must worry when you create a new product. You can have a product market fit product, but probably you don't, it's not a,

Partner Now and Buy Later Strategy

Yuryi Ferber

04:21you have to, when you create a new product, you have to be worried if you reach the the product market fit for that new product. A second way to to expand your product portfolio is to buy. You can buy another company, or you can buy the intellectual property, or you can the third option, you can partner now and buy later or maybe buy later. So what I mean by that? I mean that if you find another

04:58company that has another product, not similar, but adjacent to your product and you and something that you can sell to your customer base, maybe you can partner with that company, bring that product to your product, so make it embedded in your product like like a white label, and after some time, you can maybe buy these guys. Okay? So the the advantage of the of doing this way is that you don't need money to acquire these guys

05:36as as when you you buy the company, you have to, of course, use money, but if you partner now and buy later, you can experiment if that product really has a market fit with your current product portfolio,

05:55another important thing is the culture. So you are bringing new people to your company. Is there a are you sharing the same values? The product is really selling to your customer base. So after some time, six, twelve, or maybe eighteen months, you can start to realize if it's working or not. And when you

06:22do stuff like that, partner now and buy later, of course, you have to take care of a lot of different things. First, you have to have it on paper. So and start with start with a partner contract and stuff like revenue sharing, how much are you going to share with the partner,

06:50what are you going to do, are you going to support the partner product? So your support team is going to support your partner product? Ideally, yes, but sometimes it's not so easy to do that. So as more as you do using your partner product, as more you can retain from the revenue. So you can maybe share 50% or less percent as more as

07:22you do for the with that product. After some time, as said before, if you six, twelve, or eighteen months or twenty four months, it depends, there's no magic number, After you find out that product from your partner is working, you're really selling it to your customer base, maybe you start to think about how to acquire these guys. So the the acquisition,

Equity Swaps as an Acquisition Tool

Yuryi Ferber

07:55you should have an since day one, a formula to to price that cost of acquisition. So you can buy these guys or even if can

08:08equity swap. So rather than buying them or buy the IP or buy the IP and the team, you can maybe bring these guys to your company and give your company's equity in exchange of their product. That's the third option. This is, by the way, the way I like more, okay?

08:34Again,

08:36talking about yes. So build is the first way. Buy is the second way. In my opinion, the best way is partner now and maybe buy later if it's working.

08:54Let's jump to Section three. So we are talking now about

Segmentation in Customer Support and Customer Success

Yuryi Ferber

09:02segmentation. Segmentation is very important because, you know, you can have a great product, but if you don't serve your customer base well, you're going to have churn even having a great product. So in my opinion, too, if you are a vertical B2B, you must have segmentation in your customer support and your customer success teams. This is going to so both teams will need to have domain expertise on what you do. So if they talk the same

09:39language of your client, it's going to create a really a value, and it's going to create a bond, and the churn will be dramatically reduced. So segmentation is very important. And customer success, by the way, customer success for me is they are the guys that upsell. So again, going back to that example, you have a product, you partner with another company to add their product to your offer offering.

Customer Success as the Upsell Engine

Yuryi Ferber

10:14Who does that? In my opinion, the customer success is one that upsell because why is that? Because for me, customer success is like CRM 2.0. So these are the customer relationship managers, very close to the clients, but they need to understand the client business, and so they are talking to the client on a frequent basis, so they will know the best time to upsell or to sell a new product to that same client. And the sales

10:48teams, they are worried about bringing new clients. So you segment, you leave the sales team acquiring new clients, and you have the customer success team, of course, making sure everything is working and upselling new products to your client base.

11:09We believe it this is a page from our website. We believe it so much that you can see in our product page this is our products. In our product page, we highlight the our customer success team and our customer support team. So again, you can have a great product, but you need to have customer success and customer support very serving your clients very well and keeping your churn very low.

Highlighting Customer Teams on the Product Page

Yuryi Ferber

11:45So

11:47I show you these three most important things, I

11:56expanding your product portfolio from single to multiple products. But let me show you the impact when you have a multiple portfolio in your company, what happens to your growth.

Net Dollar Retention: 110% to 120%

Yuryi Ferber

12:12Again, if you keep your churn low, and what is low? Usually, one digit, so less than 9% per year is a good metric for a low churn, okay? So if you have a low churn and if you have multiple products, you can have a net dollar retention higher than 100%. In our case, we are working in a range between 110% to 120%. And what is the impact of having a high net dollar retention?

Growth from Existing Customer Base Over Time

Yuryi Ferber

12:53The growth coming from the customer base is huge. If you take a look at, for example, 2019, 27% of the growth came from the customer base. If you take a look at 2020, 30% came from the customer base. And if you take a look at 2021, twothree of the growth came from the customer base, only onethree came from new clients. So this is only possible if you have multiple products and you are constantly frequently upselling to

13:35your customer base.

13:40Yes, that's it. I'm open to questions.

Q&A: Targeting Different Departments Within the Same ICP

Nathan Latka

13:59>> Yes.

14:02>> You. Yeah, our ICP other B2B's, what are your thoughts of targeting the same company but different department within those companies, right? Because right now we serve, let's say the operation department, but maybe we can come up with a product that serve their sales department. So even though it is the same ICP, the same company

Yuryi Ferber

14:27Another department.

Nathan Latka

14:28>> But another department, what are your thoughts about that? Or should we like stay within the same department and not go across department?

Yuryi Ferber

14:35Yeah. When I when I when I say ICP,

14:40it can be a different persona inside the same the same company, but not the same user. So in your case, we have the same situation in our company. First, again, if one department that is your client is saying good things about you, your company, this is gonna help a lot, because the first thing is when the new department will buy a product from you is ask the other department. So again, customer support, customer success, key in

15:15this moment. So it's not a problem. It's considered the same ICP, another department, so very important. If you have big corporations and you have products to sell for the entire company, this will work. And I don't know how young is your company or but if you have multiple products, you are going to experiment net dollar retentions high levels. Thank you very much, guys.