π Takeoff #56: A spreadsheet valued at $11 Billion
Welcome to Takeoff, your weekly dose of product deep dives and new learning opportunities. Today, we're diving into the Airtable story. Lessgo!
π How Airtable made spreadsheets sexy and achieved PMF!
Howie Liu, the co-founder of Airtable had already tasted entrepreneurial success. He co-founded Etacts, an email efficiency platform, which caught the attention of tech giant Salesforce. The acquisition of Etacts by Salesforce was not just a financial win for Liu; it was an educational experience that set the stage for his future endeavours.
During his tenure at Salesforce, Liu was exposed to the inner workings of a global tech leader, gaining invaluable insights into product development and market needs. Here he stumbled upon the spreadsheet conundrum that later inspired Airtable. "Spreadsheets are really optimised for numerical analysis and financial calculations. But almost 90% of spreadsheets donβt have formulas. Most are used for organising purposes," Liu noted.
Letβs dive into how Airtable achieved PMF:
Horizontal Scaling
Airtable's approach to scaling in a horizontal product category was both strategic and patient. Co-founder Andrew Ofstad reveals that they started with a private, invite-only alpha phase that lasted two years. This allowed them to build a robust feature set while maintaining a lean team, thereby avoiding the common early-stage pitfall of overhiring. Ofstad emphasizes that scaling too quickly at this stage would have been counterproductive; the focus needed to be on nailing the foundational aspects of the database.
The alpha phase also served as a critical period for customer feedback. The team kept the feedback loop extremely tight, often sitting down with customers to understand how they were using the product. This was particularly important for Airtable, given its horizontal nature. A horizontal product starts as a generic platform, and its true potential is revealed in the myriad ways users adapt it to their specific needs.
API-led Growth
The launch of Airtable's API Builder in April 2015 was a game-changing moment that perfectly aligned with founder Howie Liu's vision of user empowerment. More than a technical feature, the API Builder served as a strategic growth lever, enabling users to integrate Airtable records into external apps and websites seamlessly. This innovation unlocked new customization possibilities, extending Airtable's functionality to meet diverse needs.
What set this move apart was its dual appeal. For tech-savvy users, the API was a powerful tool for complex integrations. For the less technical, the embedded database features offered a simpler way to extend Airtable's capabilities. This two-pronged approach broadened Airtable's market reach, making it accessible to a wider user base.
Adding a sales layer to PLG
Airtable's approach to integrating a sales layer into its PLG strategy was a carefully orchestrated process. Tony Granados, Senior Director of GTM Strategy & Revenue Operations at Airtable, emphasized that the first role of sales in a PLG model is not necessarily revenue acceleration but learning acceleration. The sales team's primary function is to maintain a continuous feedback loop with customers, gathering insights that can be used to improve the product and customer experience.
The first sales hire at Airtable was far from a traditional seller. This individual needed to have a late-stage Customer Success Manager (CSM) mindset, capable of understanding the customer's language and needs. The salesperson also had to have an expansion mindset, constantly thinking about how to help customers scale from one to ten seats.
The transition from a single salesperson to a team was based on proof of concept. Once the initial salesperson or the next hire started to show a lift in revenue, more sales resources were added.
Closing Thoughts
Airtable has been a pioneer in the low-code/no-code space, achieving an $11 billion valuation and securing a diverse clientele that includes 80% of the Fortune 100. The company's platform allows workers to create custom apps and spreadsheets, democratising software development across various sectors. However, the rise of generative AI technologies like ChatGPT has added a new dimension to this landscape. Airtable has proactively embraced this change, viewing AI as a complementary force that can automate code writing and enhance its platform's capabilities.
Airtable's AI features, currently in beta, are designed to be seamlessly integrated into existing workflows. The AI capabilities can be added to any app or workflow in minutes without requiring code. This makes AI accessible for teams to integrate into every aspect of their work, from categorising customer feedback to generating creative briefs and even drafting company memos. The AI features are built natively into Airtable, allowing for rapid iteration and refinement of AI workflows.
π From Program Manager to Product Manager?
Navneet, Co-founder of Airtribe, sat down with Sushant Kartikeya, Senior Manager (Merchant Products) at Paytm and alumnus of our Product Management Launchpad, to discuss his journey to soon, becoming a product manager. Sushantβs story is useful for most aspiring PMs when it comes to preparing for the eventual switch to the field. Check it out:
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Thatβs all for today, folks! We hope you enjoyed this weekβs newsletter. π€
Until next week, keep learning and growing! π