# Top 10 in Tech - What to know for Week ending May 3, 2024

Published: 2 May 2024
Canonical: https://www.top10in.tech/posts/week-ending-may-3-2024

## 1. SaaS METRIC OF THE WEEK: CRO

or [Conversation Rate Optimization](https://moz.com/learn/seo/conversion-rate-optimization) and Banklinko have created [a great web guide](https://backlinko.com/conversion-rate-optimization) about what it is and how to design for CRO within a business.

Link: https://moz.com/learn/seo/conversion-rate-optimization

## 2. INDUSTRY

Jason Lemkin wrote a thought-provoking article last week: [Is SaaS Dead?](https://www.saastr.com/is-saas-dead) That's a controversial headline, for sure, but it did get me thinking: Now that high growth is no longer cool (thanks AI!) and [returns are lackluster](https://pitchbook.com/news/articles/venture-capital-fund-returns-uptick-2024), is it dead? It feels like it, as it's a long down cycle, but Jason does point to plenty of upsides. SaaS spending has grown, and customers are [still spending more each year than the last](https://www.saastr.com/wp-content/uploads/2024/01/Screen-Shot-2024-01-18-at-10.35.04-AM-980x639.png).

Link: https://www.saastr.com/is-saas-dead

## 3. MICROSERVICES

Microservices have become the application deployment method du jour for quite some time now due to scalability and agility. But those old-school monolith apps also have value. Case in point - the Amazon Prime Video team recently shifted from microservices to a monolith and reduced costs by 90%. [The choice is case by case, though](https://www.techradar.com/pro/microservices-vs-monoliths-its-not-a-competition). Microservices can get crazy complex, and Monoliths simplify deployment but often lack scalability. So, a blended approach makes sense, where core functions remain monolithic, and other components can go microservices.

Link: https://www.techradar.com/pro/microservices-vs-monoliths-its-not-a-competition

## 4. CUSTOMER SUCCESS MODELS

Like customers, not all CSMs are built the same. And it depends, based on stage and strategy, as to how your CSM teams will evolve…...but they will. [Gainsight proposes 5 basic kinds of CSM](https://www.slideshare.net/GainsightHQ/gainsight-csm-org-structures) and a corollary org chart. But keep in mind IRL they all will be different hues. SaaSx has [this model](https://saasx.com/2019/05/26/a-saas-startup-sales-team-org-chart-example-3). Which one best resonates with you?

Link: https://www.slideshare.net/GainsightHQ/gainsight-csm-org-structures

## 5. REFERRALS

Cracking the referral loop is a dream outcome, but making this work is pretty rare. Kyle Poyar has written [a guide on how to do it](https://kylepoyar.substack.com/p/your-guide-to-b2b-referrals) ( a collab with Stefan Bader from Cello, makers of referral software).

Link: https://kylepoyar.substack.com/p/your-guide-to-b2b-referrals

## 6. TRUST

For #5 above to work, people trust people over brands when it comes to trust. Chart Mogul has posted an '[Ultimate' Guide to Using Customer Testimonials to Boost Sales](https://blog.chartmogul.com/customer-testimonials/), noting that a generic and insincere endorsement is just as helpful as not using anything. It's also possible to take it further by leveraging those frothiest customers into a referral channel.

Link: https://blog.chartmogul.com/customer-testimonials/

## 7. MARKETPLACES

Marketplaces need more attention in this newsletter, so time to change that a little this week. a16z have [the Marketplace 100](https://a16z.com/marketplace-100/). A ranking of the largest and fastest-growing consumer-facing marketplace startups and private companies. Instacart tops the list after some serious [food delivery consolidation](https://secondmeasure.com/datapoints/food-delivery-services-grubhub-uber-eats-doordash-postmates/) in that market, and the next 3 down are gaming and ticketing services - it will be interesting to see if any of that consolidates next year. One big marketplace problem, as outlined in [this week's copy of Mostly Metrics](https://www.mostlymetrics.com/p/a-marketplace-meltdown-can-marketplaces), is that Marketplace-driven businesses are [way behind other tech industry metrics across nearly every category](https://www.dropbox.com/scl/fi/t9hmaaq1srsygtrn8plt1/Metrics-EOAPRIL-24.jpeg?rlkey=6747exk0hh7pf9t3oksq5xy4e&dl=0) - gross margin, revenue growth, CAC Payback, and Rule of 40 being the big ones. I mean, UBER literally just had its [first-ever GAAP operating profit](https://www.dropbox.com/scl/fi/qqvsl9xxazky1k8ol43fl/Uber-GAAP.jpeg?rlkey=nw84lcea4muki8jo50mbfwglj&dl=0) (Uber started in March 2009, so it only took a quick 15 years).

Link: https://a16z.com/marketplace-100/

## 8. MARKETPLACE GROWTH

To add to #7 above, Two-sided marketplace businesses (such as Uber and Airbnb) face chicken vs. egg dilemmas when it comes to supply and demand. Here is a curated list from a16z's Andrew Chen on [28 ways to grow the supply side](https://andrewchen.co/grow-marketplace-supply) of a marketplace.

Link: https://andrewchen.co/grow-marketplace-supply

## 9. AI

Apple announced its foray into the LLM world twice last week with reports of continued [conversations with OpenAI](https://www.reuters.com/technology/apple-renews-talks-with-openai-iphone-generative-ai-features-bloomberg-news-2024-04-26/) and the launch of [OpenELM](https://machinelearning.apple.com/research/openelm) - an open-source model designed to run locally ([iPhone chips](https://apple.fandom.com/wiki/Neural_Engine) inbound!) Are there too many LLMs on the Dance Floor? TechCrunch does the hard work with [a list of all the cool ones](https://techcrunch.com/2024/04/19/too-many-models/). There is also a noted [push towards AI-services](https://foundationcapital.com/ai-service-as-software) (apparently a $4.6 trillion opportunity), which is all part of a newer push for [AI to transition from "AI co-pilots" to "AI co-workers" that can complete tasks and workflows on their own](https://adityanaganath.substack.com/p/ai-copilots-to-coworkers).

Link: https://www.reuters.com/technology/apple-renews-talks-with-openai-iphone-generative-ai-features-bloomberg-news-2024-04-26/

## 10. CASE STUDY

PITCHES. Check out [Alexander Jarvis's Pitch Deck collection](https://www.alexanderjarvis.com/startup-pitch-deck-collection/). He has over 500 decks broken down by the good and the bad things people do. And here is something a little Meta from Khosla Ventures—a[pitch deck on how to pitch VCs](https://www.khoslaventures.com/wp-content/uploads/Pitch-the-way-VCs-think_2019_FINAL.pdf) and align your narrative to your deck (and all of your other materials).

Link: https://www.alexanderjarvis.com/startup-pitch-deck-collection/

## POD OF THE WEEK

Apollo Chief Revenue Officer Leandra Fishman offers a great discussion on [how to sell in a hyper-competitive space](https://youtu.be/_wONtKu-8so) with dozens of tools, legacy systems, and cynical users. Apollo went PLG but was also hyper-focused on Time to Value for its target audience.

Link: https://youtu.be/_wONtKu-8so