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SaaS Optimization Effective Process, Metrics and Hacks Stephen Pavlovich Conversion.com 31 March 2016

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

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Page 1: [CXL Live 16] SaaS Optimization - Effective Metrics, Process and Hacks by Stephen Pavlovich

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

Page 2: [CXL Live 16] SaaS Optimization - Effective Metrics, Process and Hacks by Stephen Pavlovich
Page 3: [CXL Live 16] SaaS Optimization - Effective Metrics, Process and Hacks by Stephen Pavlovich

Testing

Strategy

Insight

Data

KPIs

Goals

Page 4: [CXL Live 16] SaaS Optimization - Effective Metrics, Process and Hacks by Stephen Pavlovich

Testing

Strategy

Insight

Data

KPIs

Goals

Page 5: [CXL Live 16] SaaS Optimization - Effective Metrics, Process and Hacks by Stephen Pavlovich
Page 6: [CXL Live 16] SaaS Optimization - Effective Metrics, Process and Hacks by Stephen Pavlovich
Page 7: [CXL Live 16] SaaS Optimization - Effective Metrics, Process and Hacks by Stephen Pavlovich
Page 8: [CXL Live 16] SaaS Optimization - Effective Metrics, Process and Hacks by Stephen Pavlovich

Inactive trial

Active trial

Lapsed trial + no sale

Current customers

Lapsed customers

Page 9: [CXL Live 16] SaaS Optimization - Effective Metrics, Process and Hacks by Stephen Pavlovich
Page 10: [CXL Live 16] SaaS Optimization - Effective Metrics, Process and Hacks by Stephen Pavlovich

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

Page 11: [CXL Live 16] SaaS Optimization - Effective Metrics, Process and Hacks by Stephen Pavlovich

“Video conferencing”

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+19%

Page 18: [CXL Live 16] SaaS Optimization - Effective Metrics, Process and Hacks by Stephen Pavlovich

Free trials do not pay the bills.

@conversion_com

Page 19: [CXL Live 16] SaaS Optimization - Effective Metrics, Process and Hacks by Stephen Pavlovich
Page 20: [CXL Live 16] SaaS Optimization - Effective Metrics, Process and Hacks by Stephen Pavlovich
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Don’t convert to trial before the user is sold on the product.

@conversion_com

Page 22: [CXL Live 16] SaaS Optimization - Effective Metrics, Process and Hacks by Stephen Pavlovich
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Testing

Strategy

Insight

Data

KPIs

Goals

Page 24: [CXL Live 16] SaaS Optimization - Effective Metrics, Process and Hacks by Stephen Pavlovich

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

Page 25: [CXL Live 16] SaaS Optimization - Effective Metrics, Process and Hacks by Stephen Pavlovich

Stage Day Phase Focus Goals KPIs

1 1 Acquire Landing pageSign-up page

Trial UVsTrials

SaaS metrics

Page 26: [CXL Live 16] SaaS Optimization - Effective Metrics, Process and Hacks by Stephen Pavlovich

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

Page 27: [CXL Live 16] SaaS Optimization - Effective Metrics, Process and Hacks by Stephen Pavlovich

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

Page 28: [CXL Live 16] SaaS Optimization - Effective Metrics, Process and Hacks by Stephen Pavlovich

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

Page 29: [CXL Live 16] SaaS Optimization - Effective Metrics, Process and Hacks by Stephen Pavlovich

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

Page 30: [CXL Live 16] SaaS Optimization - Effective Metrics, Process and Hacks by Stephen Pavlovich

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

Page 31: [CXL Live 16] SaaS Optimization - Effective Metrics, Process and Hacks by Stephen Pavlovich

Four options for KPIs

Page 32: [CXL Live 16] SaaS Optimization - Effective Metrics, Process and Hacks by Stephen Pavlovich

Stage Phase

1 Acquire

2 Activate

3 Monetize

4 Retain

+ Upsell

+ Refer

#1 Visit > Trial

Page 33: [CXL Live 16] SaaS Optimization - Effective Metrics, Process and Hacks by Stephen Pavlovich
Page 34: [CXL Live 16] SaaS Optimization - Effective Metrics, Process and Hacks by Stephen Pavlovich

Stage Phase

1 Acquire

2 Activate

3 Monetize

4 Retain

+ Upsell

+ Refer

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

Page 35: [CXL Live 16] SaaS Optimization - Effective Metrics, Process and Hacks by Stephen Pavlovich

Stage Phase

1 Acquire

2 Activate

3 Monetize

4 Retain

+ Upsell

+ Refer

#2 Visit > Sale

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Page 37: [CXL Live 16] SaaS Optimization - Effective Metrics, Process and Hacks by Stephen Pavlovich

Stage Phase

1 Acquire

2 Activate

3 Monetize

4 Retain

+ Upsell

+ Refer

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

Page 38: [CXL Live 16] SaaS Optimization - Effective Metrics, Process and Hacks by Stephen Pavlovich

Stage Phase

1 Acquire

2 Activate

3 Monetize

4 Retain

+ Upsell

+ Refer

#3 Visit > Qualified trial

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Page 40: [CXL Live 16] SaaS Optimization - Effective Metrics, Process and Hacks by Stephen Pavlovich

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

Page 41: [CXL Live 16] SaaS Optimization - Effective Metrics, Process and Hacks by Stephen Pavlovich

Stage Phase

1 Acquire

2 Activate

3 Monetize

4 Retain

+ Upsell

+ Refer

#4 Visit > Active user

Page 42: [CXL Live 16] SaaS Optimization - Effective Metrics, Process and Hacks by Stephen Pavlovich

4: Visit to active user

Page 43: [CXL Live 16] SaaS Optimization - Effective Metrics, Process and Hacks by Stephen Pavlovich

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

Page 44: [CXL Live 16] SaaS Optimization - Effective Metrics, Process and Hacks by Stephen Pavlovich

In SaaS conversion optimization,test through to active trials.

@conversion_com

Page 45: [CXL Live 16] SaaS Optimization - Effective Metrics, Process and Hacks by Stephen Pavlovich

Testing

Strategy

Insight

Data

KPIs

Goals

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Page 47: [CXL Live 16] SaaS Optimization - Effective Metrics, Process and Hacks by Stephen Pavlovich

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

@conversion_com

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Impact of churn on growth

Page 49: [CXL Live 16] SaaS Optimization - Effective Metrics, Process and Hacks by Stephen Pavlovich

Impact of churn on growth

Page 50: [CXL Live 16] SaaS Optimization - Effective Metrics, Process and Hacks by Stephen Pavlovich

Impact of churn on growth

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Fix churn before acquisition – it will flatline growth.

@conversion_com

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

Chamath Palihapitiya

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Page 56: [CXL Live 16] SaaS Optimization - Effective Metrics, Process and Hacks by Stephen Pavlovich
Page 57: [CXL Live 16] SaaS Optimization - Effective Metrics, Process and Hacks by Stephen Pavlovich
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Page 59: [CXL Live 16] SaaS Optimization - Effective Metrics, Process and Hacks by Stephen Pavlovich

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

@conversion_com

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

@conversion_com

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$6.99 $9.99

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$6.99 $9.99

Quantity sold:

Page 74: [CXL Live 16] SaaS Optimization - Effective Metrics, Process and Hacks by Stephen Pavlovich

“How do we increase profit?”

Page 75: [CXL Live 16] SaaS Optimization - Effective Metrics, Process and Hacks by Stephen Pavlovich

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…

Page 76: [CXL Live 16] SaaS Optimization - Effective Metrics, Process and Hacks by Stephen Pavlovich

$6.99 $9.99

Quantity sold:

Page 77: [CXL Live 16] SaaS Optimization - Effective Metrics, Process and Hacks by Stephen Pavlovich

$6.99 $9.99

Quantity sold:

$19.99

Page 78: [CXL Live 16] SaaS Optimization - Effective Metrics, Process and Hacks by Stephen Pavlovich

$6.99 $9.99

Quantity sold:

$19.99

Page 79: [CXL Live 16] SaaS Optimization - Effective Metrics, Process and Hacks by Stephen Pavlovich
Page 80: [CXL Live 16] SaaS Optimization - Effective Metrics, Process and Hacks by Stephen Pavlovich
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Revenue

+40%

Page 83: [CXL Live 16] SaaS Optimization - Effective Metrics, Process and Hacks by Stephen Pavlovich

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

Page 84: [CXL Live 16] SaaS Optimization - Effective Metrics, Process and Hacks by Stephen Pavlovich
Page 85: [CXL Live 16] SaaS Optimization - Effective Metrics, Process and Hacks by Stephen Pavlovich

Sales

+100%

Page 86: [CXL Live 16] SaaS Optimization - Effective Metrics, Process and Hacks by Stephen Pavlovich

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

@conversion_com

Page 87: [CXL Live 16] SaaS Optimization - Effective Metrics, Process and Hacks by Stephen Pavlovich

Stephen PavlovichFounder & CEO

E: [email protected]: +44 7970 428029

Page 88: [CXL Live 16] SaaS Optimization - Effective Metrics, Process and Hacks by Stephen Pavlovich

Testing

Strategy

Insight

Data

KPIs

Goals