3. Characteristics of a SaaS Business
Find & Run Model
– SaaS should be easily found („get found‟)
– No physical barriers to value realization
Smooth Customer Experience
– Frictionless customer engagement processes
Customer Driven Model
– User Driven
Self
– Service…
– Evaluation…
– Pace…
5. Majority (87%) of SaaS executives regularly track “CAC related”
1 metrics, with a large percentage (58%) adding or planning to add
tracking of “CLTV related” metrics in the next year.
Executives at SaaS companies regularly monitor the following metrics:
59%
54% 56% 56%
44%
CAC Related
CLTV Related
Website Unique New Signups Conversion Rate Life Time Value Churn Rates
Visitors (Trial to Paying)
Plan to track in the next 12 month:
58%
19%
5
CAC Related CLTV Related
8. SaaS Sales Models
No Touch No sales team. Customer self-service
37Signals Yammer MailChimp
Low Touch Inside sales team + Inbound marketing
Zendesk Hubspot Box
High Touch Enterprise sales
Jive software Taleo Panaya
Hybrid Models Mix & match
9. Low Touch Sales - Reality
High volume of leads
From Inbound marketing activities
High rate of low quality leads
75%+ is not uncommon
Short staffed team
Sales-rep responsible for hundreds of new trials
Focus on opportunities that matter
Use conversion data to drive contact priority
10. 3 Things to look at…
Conversion Rate
Overall 2.4%
282 out of 11,332 Signup
(11,332)
Actively
Evaluating Converted
(282) a
(2,136)
Conversion Rate
Actively
Evaluating
13.2%
282 out of 2,136
11. Considerations…
Calculate conversion after accounts
had enough time to convert
Signups
• Time-based: after trial period passed (11,332)
• Freemium: (more complicated)
A] understand mean conversion time
B] conversion analysis by cohort
Actively
Evaluating Converted
Who is “Actively Evaluating?” (2,136) (282)
• Demonstrating “buying intent” by
trying out the SaaS offering
• Measuring can be tricky:
A] Return visits
B] Activated account
C] Specific functionality used
12. Conversion Signals
Conversion Rate
Entire Population 2.4% 2.4% of ALL trials in May converted (282 out of 11,332)
282 out of 11,332
A smaller segment of the population (2,136 trials) showed a
Conversion Rate much higher conversion rate (13.1%).
These are all the trials that were active on the service for at
Evaluating 13.1% least 2 days.
Nearly all converting trials (281 out of 282) exhibited this
281 out of 2,136 behavior
Had more than 2 days of activity
Conversion Rate
An even smaller segment (309 trials) had a much higher
Hot 29.7% conversion rate (nearly 30%)
These are all trials that had 3 users join the trial account
92 out of 309 during the first 3 days of trial
3 users or more in first 3 days of
trial
13. Who to contact?
Who has the team contacted?
Contact Rate
Hot TOP PRIORITY
Your best chance to make a sale!
41% Goal: 100%
129 out of 309
Contact Rate
Evaluating HIGH PRIORITY 33% Goal: 100%
799 out of 2,136
Ideal contact target
Contact Rate
Entire Population LOWER PRIORITY 19%
2,179 out of 11,332
Team‟s capacity
15. Customer Success - CLTV
Shorten Time to Value
Increase Customer Loyalty
Reduce chances of churn
16. Segment Based on Maturity
Segment by Maturity
New Accounts – Minimize time to value
– Ensure successful initial implementation
– Monitor Growth and Expansion
– Training
Mature Accounts – Ensure on going value
– Exposure to new functionality
– Sustained engagement
– Look for growth opportunities
19. Higher Engagement = Higher Value
What product features are used the most?
– Break down by account segment (free, basic, premium)
– Break down by lifecycle/maturity (trial, onboarding, established)
Proactive outreach to accounts with decline or
increase in usage
Deep diagnostics into product area that are not
resulting in engagement
– Broken UX? Lacking documentation? Low value?
– Supplement measurements with customer interviews (qualitative
data)
20. Trial Onboarding Diagnostics: Example
Entire Population
15.5%
621 out of 4,002
Conf. Basic Conf. Advance Invite Team
Settings Settings Members
20.5%
549 out of 2,675
8.5%
216 out of 510
34.4%
262 out of 760
50% 35% 21%
5%+ conversion when going 7%- conversion when going x2 conversion when inviting
through basic config, but only through advanced config. team!
50% of accounts do it.
Improve UX Improve UX
Optimize UX flow Hide functionality post-trial Tutorial / Marketing
