Slack·Article·January 1, 2015

Slack's Epic Launch Strategy (0 to $1B)

Stewart Butterfield's detailed launch playbook

Source
Stewart Butterfield
Format
Article
Published
January 1, 2015

Summary

Slack faced the unique challenge of launching a product in a nascent market category where most teams didn't recognize they needed centralized communication tools. Unlike individual-focused products, Slack had to convince entire teams to adopt their platform, where any single team member could veto the decision. Additionally, 70-80% of potential customers claimed they used "nothing" for internal communication, when in reality they relied on fragmented solutions like ad hoc emails, Skype, and SMS.

Slack's strategy centered on intensive customer feedback loops and progressive scaling. Starting with 6-10 friendly companies in 2013, they tested with progressively larger teams, making product changes at each stage. They ran a six-month "preview release" (avoiding the "beta" label to maintain perception of reliability) supported by a strong PR strategy leveraging their team's experience from Flickr. Crucially, they developed educational materials for both individual users and team administrators, teaching the market that team communication was a legitimate software category requiring a dedicated solution. They also adopted a bottoms-up enterprise approach, allowing mid-level managers to expense the tool without requiring C-suite approval.

The results were explosive: 8,000 sign-ups on day one of their preview release, growing to 15,000 within two weeks, and reaching 30,000 teams and $1B valuation within two years. Key takeaways for PMs include: make customer feedback your epicenter, invest heavily in launch PR strategy, create market category education when pioneering new spaces, and consider bottoms-up adoption for enterprise products to bypass lengthy procurement processes.

Topics

launchgo-to-market