[CXL Live 16] SaaS Optimization - Effective Metrics, Process and Hacks by Stephen Pavlovich

SaaS OptimizationEffective Process, Metrics and HacksStephen PavlovichConversion.com31 March 2016

Testing

Strategy

Insight

Data

KPIs

Goals

Testing

Strategy

Insight

Data

KPIs

Goals

Inactive trial

Active trial

Lapsed trial + no sale

Current customers

Lapsed customers

“If you could make one change to the product, what would it be?”

“Video conferencing”

+19%

Free trials do not pay the bills.

@conversion_com

Don’t convert to trial before the user is sold on the product.

@conversion_com

Testing

Strategy

Insight

Data

KPIs

Goals

“But how can you optimize for sales with a 14 or 30-day trial?”

Stage Day Phase Focus Goals KPIs

1 1 Acquire Landing pageSign-up page

Trial UVsTrials

SaaS metrics

Stage Day Phase Focus Goals KPIs

1 1 Acquire Landing pageSign-up page

Trial UVsTrials

2 1–2 Activate ProductEmail

Active user Product usage

SaaS metrics

Stage Day Phase Focus Goals KPIs

1 1 Acquire Landing pageSign-up page

Trial UVsTrials

2 1–2 Activate ProductEmail

Active user Product usage

3 14–30 Monetize Plans pageCheckout

Customer SalesMRR

SaaS metrics

Stage Day Phase Focus Goals KPIs

1 1 Acquire Landing pageSign-up page

Trial UVsTrials

2 1–2 Activate ProductEmail

Active user Product usage

3 14–30 Monetize Plans pageCheckout

Customer SalesMRR

4 <90 Retain ProductEmail

LTV Churn

SaaS metrics

Stage Day Phase Focus Goals KPIs

1 1 Acquire Landing pageSign-up page

Trial UVsTrials

2 1–2 Activate ProductEmail

Active user Product usage

3 14–30 Monetize Plans pageCheckout

Customer SalesMRR

4 <90 Retain ProductEmail

LTV Churn

+ – Upsell ProductEmail

Increase revenue

Negative churnARPA

SaaS metrics

Stage Day Phase Focus Goals KPIs

1 1 Acquire Landing pageSign-up page

Trial UVsTrials

2 1–2 Activate ProductEmail

Active user Product usage

3 14–30 Monetize Plans pageCheckout

Customer SalesMRR

4 <90 Retain ProductEmail

LTV Churn

+ – Upsell ProductEmail

Increase revenue

Negative churnARPA

+ – Refer ProductEmailRefer-a-friend

Virality Viral coefficient

SaaS metrics

Four options for KPIs

Stage Phase

1 Acquire

2 Activate

3 Monetize

4 Retain

+ Upsell

+ Refer

#1 Visit > Trial

Stage Phase

1 Acquire

2 Activate

3 Monetize

4 Retain

+ Upsell

+ Refer

#1 Visit > Trial⊕ Quick to test⊖ May not correlate to sales

Stage Phase

1 Acquire

2 Activate

3 Monetize

4 Retain

+ Upsell

+ Refer

#2 Visit > Sale

Stage Phase

1 Acquire

2 Activate

3 Monetize

4 Retain

+ Upsell

+ Refer

#2 Visit > Sale⊕ Better indication of revenue⊖ Increased test duration

Stage Phase

1 Acquire

2 Activate

3 Monetize

4 Retain

+ Upsell

+ Refer

#3 Visit > Qualified trial

Stage Phase

1 Acquire

2 Activate

3 Monetize

4 Retain

+ Upsell

+ Refer

#3 Visit > Qualified trial⊕ Quick to test⊕ Closer correlation to sales⊖ Need to develop reliable lead scoring model

Stage Phase

1 Acquire

2 Activate

3 Monetize

4 Retain

+ Upsell

+ Refer

#4 Visit > Active user

4: Visit to active user

Stage Phase

1 Acquire

2 Activate

3 Monetize

4 Retain

+ Upsell

+ Refer

#4 Visit > Active user⊕ Quick to test⊕ High correlation to sales⊖ Action needs to happen within 1–2 days

In SaaS conversion optimization,test through to active trials.

@conversion_com

Testing

Strategy

Insight

Data

KPIs

Goals

The “a-ha” moment is the tipping point for retention.

@conversion_com

Impact of churn on growth

Impact of churn on growth

Impact of churn on growth

Fix churn before acquisition – it will flatline growth.

@conversion_com

“Knowing this allowed us to do a lot to get new users to their “a-ha” moment quickly.”

Chamath Palihapitiya

Deliver the “a-ha” moment ASAP – even before the user signs up.

@conversion_com

Use simple Q&A to sell to and segment your audience.

@conversion_com

http://conversionxl.com/10-principles-of-effective-pricing-pages/

$6.99 $9.99

$6.99 $9.99

Quantity sold:

“How do we increase profit?”

1. Increase the price of the $6.99 bottle.2. Decrease the price of the $9.99 bottle. 3. Change the prices to $6.97 and $9.97.4. Offer 10% off if you buy three. 5. Something else…

$6.99 $9.99

Quantity sold:

$6.99 $9.99

Quantity sold:

$19.99

$6.99 $9.99

Quantity sold:

$19.99

Revenue

+40%

Free$0/month

Basic$25/month

Pro$100/month

Enterprise$300/month

✔ Feature 1 ✔ Feature 1✔ Feature 2✔ Feature 3

✔ Feature 1✔ Feature 2✔ Feature 3✔ Feature 4✔ Feature 5

✔ Feature 1✔ Feature 2✔ Feature 3✔ Feature 4✔ Feature 5✔ Feature 6✔ Feature 7✔ Feature 8

Get started Get started Get started Get started

Sales

+100%

Test “decoy” price plans + volume-based pricing.

@conversion_com

Stephen PavlovichFounder & CEO

E: stephen.pavlovich@conversion.comM: +44 7970 428029

Testing

Strategy

Insight

Data

KPIs

Goals