How Dovetail grew to a $970M (Australian) valuation in 5 years—and created a new SaaS category: I chatted with 4 members of their team, and 4 UXR leaders, to learn the details. 1. Product-led growth, design-led company Dovetail's business model is decidedly product-led growth. The company relies on the product, and inherently viral features like research reports, to acquire, convert, monetize, and retain users. But design-led is its culture. CEO and co-founder Benjamin Humphrey has been in the details of the design since its beginning. And the product "feels" like it as a result. 2. Creating a hub for a neglected persona Rewind to 2016. While engineers had JIRA, Designers had Sketch, PMs had Google Docs, and analysts had Tableau, User Researchers had... nothing? Their workflow was a mess of hopping between different software. Ben had lived it as a product designer at Atlassian. There was a plethora of software focused on how to build, but there was almost nothing about what to build. So, after proving out the idea with an MVP, he recruited his Atlassian Engineer friend, Bradley Ayers, to join him. 3. Mastering the PLG motion Dovetail excels in all layers of PLG: → Acquisition: they don't use any outbound sales, focusing on product acquisition → Core problem communication: the home page emphasizes improving how you make product decisions → Reduced friction: its onboarding is focused on a standard walkthrough, but it is 10 steps → Activation: Dovetail has an intuitive product, examples, and templates to take you from setup to habit → Retention: as a system of record, the product gets stickier as more (qualitative) data is put in it → Monetization: the free plan has unlimited functionality, but only 1 project → Expansion: it has a natural growth of free users, who eventually become editors 4. Creating powerful, reinforcing growth loops Dovetail 2 two core loops: • More paid seats helps them build a better product, which helps UXRs succeed, which drives more UXRs and paid seats • UXRs succeed, driving collaborators to join, which go from free to paid seats As well as 2 ancillary loops: • The more paid seats, the more it can invest in inbound sales • The more free seats, the more expansion products like Channels (to analyze customer support data) it can build 5. Building towards a category of one While there are competitors in the research insights space, Dovetail is building out its own category. It's not quite transcription. It's not quite a hub for research. It's that and more. This has helped it create its own, new category in SaaS. As Benjamin, still the CEO, told me: "We're building a system of record for all insights... It's a friggin' long, 20-year journey. You need to be a little nuts to have that level of ambition. "
Absolutely love Dovetail 💕
Very cool tear down.
We're so grateful you took the time to write about our journey, Aakash Gupta!
A really good post
Impressive journey and vision. Building a new SaaS category is no small feat.
Amazing 💯
Insightful as always. Thank you so much for this Aakash Gupta
Thanks for the great write-up Aakash!
The Product Growth Guy 🚀 | Helping product builders + growth people succeed | Newsletter Writer and Podcast Host
10moFor a complete, screen-by-screen breakdown of Dovetail’s PLG motion, check out the deep dive: (Loaded with more quotes and insights from the team) https://www.news.aakashg.com/p/how-dovetail-grows