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The unique story of Slack and its $27 billion purchase by Salesforce

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Table of contents

  • Company - Slack
  • Founders - Stewart Butterfield & Cal Hendorson
  • HQ based in San Francisco, CA
  • Founded in 2009
  • 20 million users
  • Revenue - $273.4M (2022)
  • Employees - 2,545

Introduction

In the rapidly evolving world of technology startups, very few can claim to have grown exponentially within a span of just two years. Slack, the internal-communication platform, is among these exceptional few. This is their story.

The Twitter Wall of Love

In an age where social media validation can make or break a company, Slack boasts of an authentic Twitter Wall of Love. Testimonies like “HELL YEAH WE'RE USING @SlackHQ AT WORK I. LOVE. SLACK” not only exemplify user satisfaction but also Slack’s broadening influence.

Humble Beginnings

Contrary to its roaring success, Slack didn't rely on massive marketing campaigns or splashy email strategies. Their growth was rooted in a more genuine element: making customer feedback the heart of their mission. Stewart Butterfield, one of Slack’s founders, frequently emphasizes this customer-centric approach as the company’s North Star.

Slack's journey began at the end of 2012. Although it started as an attempt to create a web-based massively multiplayer game (which didn’t pan out), by March 2013, the platform was in its nascent form.

The Power of Feedback

Initially, the Slack team themselves were the primary users. However, knowing the limitations of their own perspective, they quickly reached out for external feedback. By May 2013, they collaborated with companies like Cozy and Rdio. Such partnerships were invaluable, revealing how Slack's dynamics changed with varying team sizes. By the summer, the feedback-driven iterations had refined Slack enough for its preview release in August 2013.

Leveraging Traditional Media

Butterfield’s approach to launching was strategic. Eschewing the “beta” label, which might suggest unreliability, Slack invited users to request access instead. This approach, combined with a strategically timed media blitz, generated 8,000 sign-ups on the first day, ballooning to 15,000 in just two weeks.

Butterfield’s advice for other startups? Never underestimate traditional media. Amplify coverage by leveraging social networks, re-sharing content, and engaging influencers.

Educating the Market

One of Slack's notable challenges was addressing a market that wasn't well-defined. While some users migrated from platforms like HipChat or IRC, a significant percentage claimed they were using “nothing” for team communication. Butterfield's team took it upon themselves to educate users about the product category they didn’t realize they needed, emphasizing the inefficiencies in their current communication mishmashes.

The Art of Team Persuasion

Positioning Slack for teams, rather than entire companies, presented unique challenges and opportunities. Every member’s voice was essential; a single negative feedback could derail adoption. However, this focus also allowed for grassroots-level adoption within enterprises, sidestepping the traditionally cumbersome top-down approval processes.

Prioritizing Active Listening

Butterfield attributes a considerable chunk of Slack’s success to active listening. Every piece of feedback, every tweet, and every help ticket was an opportunity to refine. In the early days, they focused on feedback from teams they believed would benefit most from Slack. Addressing their concerns ensured that Slack would be a good fit for similar teams in the market.

The Customer Experience

Slack's emphasis on the customer was so strong that Butterfield himself often took charge of the Twitter front, while their Director of Quality and Support managed support tickets. Their team, termed "customer experience," blurred the lines between quality assurance and customer support, embodying the company's dedication to their users.

Conclusion

Slack's journey from 0 to $1B wasn't just about a great product. It was about listening, iterating, and educating, all while staying firmly rooted in the ethos of customer centricity. In the hyper-competitive world of tech startups, Slack's story serves as a beacon, illuminating the path to success through genuine engagement and relentless improvement.

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