Pivoting to Product: How Tetra Insights Transformed from Services to Enterprise SaaS Platform
The path from services to product company is notoriously difficult. In a recent episode of Category Visionaries, Michael Bamberger shared how Tetra Insights navigated this transition by paying close attention to changing customer needs and market dynamics.
The Agency Origins
Before Tetra, Michael co-founded Alpha UX (now Feedback Loop), a consulting firm helping companies make better product decisions through customer research. While successful, the team noticed a significant limitation in their service-based model.
“We actually tried to scale doing that kind of work more readily. So doing lots of interviews, cutting them up into video clips by theme, by finding, by segment, et cetera. And unfortunately, weren’t able to scale that. The technology just didn’t exist,” Michael explained.
The Market Signal That Changed Everything
The pivot to product wasn’t just about scalability challenges. A clear market signal emerged: customers wanted to own their research process. “At my last business feedback loop, were doing research on behalf of customers. And then in year two and three, the people in our meetings were researchers and designers and product managers, and they wanted to do the research themselves with our help,” Michael shared.
This shift in customer behavior revealed two critical insights that would shape Tetra’s direction. First, qualitative insights in video and audio form were incredibly powerful for decision-making. Second, organizations wanted tools to conduct and analyze this research internally rather than outsourcing it.
Building the Product Platform
Rather than trying to scale the services business, Michael and his team decided to build the technology they wished they had when running their agency. They focused on creating a platform that would enable organizations to transform their qualitative data into actionable insights.
The decision has proven transformative. “Since 2020, our revenue has more than doubled each year, and we’re on pace to continue that and surpass that this year,” Michael revealed. Even more impressive is how quickly customers expand their usage: “Across our enterprise customers who have been with us for two plus years now, we’re seeing an average growth rate of more than three times year over year.”
Key Lessons from the Transition
- Technical Foundation Matters One crucial learning from the pivot was the importance of technical talent. “If I could go back in time, I would over invest in senior engineers early,” Michael reflected, emphasizing the need for experienced technical talent when building enterprise-grade software.
- Content-Driven Enterprise Sales Instead of traditional enterprise sales tactics, Tetra found success through thought leadership content. “We have unique and often counterintuitive perspectives on the world that we serve, and we’re not afraid to share them,” Michael explained. This approach has been so effective that they’ve “signed large six figure contracts from people who just watched a couple of webinars.”
- Focus on Enterprise Embedding The product strategy focused on becoming deeply integrated into customer workflows. “We have clients where literally our platform is part of their onboarding and training for all of their product staff, potentially thousands of people,” Michael shared.
Looking ahead, Tetra aims to become “the de facto standard, deployed broadly across these types of companies” that prioritize user experience and customer insights. Their journey from services to product company offers valuable lessons for founders considering a similar transition: watch for market signals, build what customers want to own (not just use), and focus on becoming embedded in customer workflows rather than remaining an external service provider.
The success of their pivot suggests that sometimes the best product ideas come from trying to scale services that customers increasingly want to own themselves.