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Techniques to Increase ConversionsFor Your SaaS BusinessHiten ShahKISSmetrics Webinar • February 22nd, 2011

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Twitter Hash Tag #measure

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SaaS: Software as a Service

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SaaS Sales Models• Customer Self Service (sign up and pay online) • Examples: 37signals, Zoho, Dropbox• Transactional Sales (inside sales) • Examples: HubSpot, Salesforce, Zendesk• Enterprise Sales ("elephant" hunting) • Examples: BazaarVoice, BrightEdge, Workday• Hybrid (a little, or lot of everything) • Examples: YouSendIt, LogMeIn, Google Apps

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SaaS Pricing Models• Paid Sign Up (no free trial or free plan) • Examples: CrazyEgg, Mozy• Free Trials (timed trials) • Examples: 37signals, Backupify• Freemium (free forever → upgrades) • Examples: YouSendIt, LogMeIn, Evernote

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CrazyEgg Pricing BeforeFreemium (free forever → upgrades) Visited Site Free Sign Up Upgraded

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CrazyEgg Pricing AfterPaid Sign Up (no free trial or free plan) Visited Site Sign Up Pay

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CrazyEgg Results• Sign ups decrease by 10x• Doubled revenue in the first month• 2 years later, 25% of the revenue is from free customers• There is a free plan in CrazyEgg’s future =)

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Funnel Testing & Optimization

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Macro Conversions“ It’s important not to get distracted by intermediate metrics like the click-through rate of the button itself...we only care about the customer behaviors that lead to something useful” Eric Ries, The Lean Startup

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Activation• Web analytics application • Install javascript code and start tracking data• Project management application • Create first project and invite a person• Customer relationship management application • Add their first contact and follow up with them• Customer support application • Receive and respond to a customer support request

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SaaS Macro Conversion FunnelsPaid Sign Up (no free trial or free plan) Visited Site Sign Up Pay $ ActivatedFree Trials (timed trials & product limit trials) Visited Site Trial Sign Up Activated Upgraded $Freemium (free forever → upgrades) Visited Site Free Sign Up Activated Upgraded $

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5 Step Process for Funnel Optimization1. Baseline your macro conversions2. Identify optimization opportunities3. Gather qualitative data4. Create and implement A/B tests5. Measure against your baseline, rinse & repeat

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Baseline your macro conversions

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Identify optimization opportunities• Which step has the highest drop off?

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Gather qualitative data• Identify conversion barriers• Surveying • Survey.io, KISSinsights, Wufoo, SurveyMonkey, etc...• Usability Testing • In-person, UserTesting.com, FiveSecondTest, etc...• Example • Task completion survey http://kiss.ly/biUD9L • SaaS plans page survey http://kiss.ly/f9ZlAb

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Create and implement A/B tests• Many ways to improve funnels• Modify your steps • Combine, remove or change the order of steps. • Add UI elements to guide users• Test your designs • Headlines, images, buttons, microcopy, etc... • Try radical variations

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Measure against your baseline, rinse & repeat

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Segmenting Your Customers

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Account type segmentation http://rowfeeder.com/plans

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Company size segmentation http://box.net/pricing

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Custom segmentation

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Custom segmentation data

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Testing Your Call to Actions

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Funnel A/B Testing Rules!

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Survey, segment, analyze & then create tests Customer Development Survey http://survey.io

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Segment and analyze

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Don’t copy “best practices” blindly How to Increase Sign-ups by 200% http://kiss.ly/seeplansandpricing

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Learn what works best for your customers A Beginner’s Guide To A/B Testing: Exceptional Web Copy http://blog.kissmetrics.com/ab-testing-web-copy/

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3 Techniques for Increasing SaaS Conversions Baseline then optimize your funnels Segment your customers Test your call to actions

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You’ve got questions... How many of my visitors are converting into signed-up customers? How many of those signups are upgrading? How many of last month’s customers are still around this month? How long does it take, on average, for a visitor to become a customer? How much am I making each day in revenues? How much is the average customer paying me each month? We have the answers! Email us to learn more about our SaaS APIs saas@kissmetrics.comHiten Shahhshah@kissmetrics.com • 650.241.4531