How Loxo Built a Demand Gen Engine from Scratch -
Driving 45% ARR Growth with Refine Labs
Loxo is the #1 Talent Intelligence Platform and global leader in recruiting software.
increase in ARR quarter over quarter
Increase in Qualified (HIRO) Opportunities
Decrease in customer acquisition cost
Before Refine Labs, Loxo was in zero-to-one building mode–emphasizing investment in their product team and customer success team with a mission to build the best product possible.
Prior to our partnership Loxo’s growth could be attributed to word of mouth, and network connections. It was early days in terms of company maturity, and they had their sights set on finding product market fit through strong relationships with their buying persona.
Fast forward to Q3 of 2022, with a close rate of 75%, Loxo’s CEO, Matt Chambers, knew their product had strong product market fit, and it was time to get out in the market and start creating demand.
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Overall results were achieved by modifying the GTM strategy to focus on creating and capturing demand through a dual motion approach–Product Led Growth and Sales Led Growth.
To accurately capture the right demand, we conducted an audit of all high-intent keywords to ensure we were maximizing the impression share for those keywords that were capturing the majority of conversions translating into pipeline opportunities. This was not limited to Google Ads data; we also incorporated conversion data from HubSpot and Salesforce. This comprehensive approach allowed us to ensure that conversions from the ad platform were effectively translating into actual pipeline conversions, representing a true measure of demand capture.
However, to truly generate demand, we needed to reach the right Ideal Customer Profile (ICP). This involved leveraging a combination of target account lists focused on priority accounts, while excluding companies outside of our target employee count. In addition to ads aimed at generating demand, we launched teaser videos before going live and promoted organic posts that had strong traction and were aligned with both Product-Led Growth (PLG) and Sales-Led Growth (SLG). The goal was to ensure all content, both organic and paid, was focused on educating the ICP, creating awareness for both a bottom-up PLG motion and a top-down SLG motion. This approach created a self-sustaining system that continuously brought in new trials. It also sped up the sales process for leads that needed help from their Sales team, whether they started as a trial user or came in through a demo request.
By focusing on creating demand for the ideal customer profile, acquisition costs were reduced by 23% while annual recurring revenue increased by 45% quarter over quarter.
