How to Build a Funnel that Will Grow Your Subscription Business the Fastest
 

How to Build a Funnel that Will Grow Your Subscription Business the Fastest

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• 3. We’ll cover...1 What is activation?2 4 levers for industry domination3 Common pitfalls of testing ...

• 3. We’ll cover...1 What is activation?2 4 levers for industry domination3 Common pitfalls of testing
• 4. WHAT ISActivation?
• 5. Your SaaS funnel
• 6. Are people using your product? Not only do people need to create an account, they need to start using your product.
• 7. No value = no sale
• 8. How to define activation Activation = the critical step people need to take in order to get value from your product
• 9. Facebook Activation
• 10. Evernote Activation
• 11. Instagram Activation
• 12. Basecamp Activation
• 13. Make sure to track activation It’s the most important part of your funnel and everyone forgets it.
• 14. FUNNELLevers
• 15. What’s a lever? A change to the funnel that helps you maximize users or revenue.
• 16. Lever #1 Free Trials
• 17. Trial Funnel Visited Site Trial Sign Up Activated Upgraded
• 18. Basecamp Free trial
• 19. On-ramp program is critical You have a limited number of days to make the sale. Don’t waste them.
• 20. What’s your on-ramp program? The new user experience (NUX) should be completely different than your regular program.
• 21. Shopify NUX
• 22. 14, 30, or 45 day trial?
• 23. Replacing the free trial Try replacing your free trial with a 30- day money back guarantee.
• 24. Lever #2 Freemium
• 25. Freemium Funnel Visited Site Free Sign Up Activated Upgraded
• 26. Looking for user growth? Freemium is where you want to be.
• 27. What do you limit? There’s a balance between offering enough so people sign up but not offering too much so they never upgrade.
• 28. Common Freemium Limits1 Dropbox = 2 GB of Storage2 Evernote = 60 MB of Uploads3 MailChimp = 2,000 Email Subscribers
• 29. MailChimp Freemium
• 30. Freemium users take forever to upgrade Very difficult to track changing behavior over time with a long-term funnel.
• 31. Cohort reports help a lot with freemium
• 32. Lever #3 UP-FRONTCredit Cards?
• 33. When do you collect credit card info? At account creation or at upgrade?
• 34. Credit cards up front Fewer people will create an account but a LOT more will upgrade (especially if the upgrade is opt-out).
• 35. Credit cards at upgrade Much easier to get people to create an account, much harder to get them to upgrade.
• 36. AWeber $1 Trial
• 37. Maximizing users or revenue?
• 38. Lever #4 MONTHLY OR ANNUAL Billing
• 39. Users or revenue?
• 40. CrazyEgg used to be monthly
• 41. Your Funnel Levers
• 42. Test different levers for most growth
• 43. COMMONPitfalls
• 44. WHAT TO FOCUS ON First?
• 45. Look for bottlenecks in your funnel
• 46. Very few people go from Activation to Upgrade
• 47. Use levers to fix bottlenecks
• 48. ARE YOU ONLY TESTING THE Funnel?
• 49. Variation B performs the best in this funnel
• 50. Variation A gives the most revenue
• 51. SHOULD WE TESTRandomly?
• 52. Why did you get your results?
• 53. Do you have qualitative data?
• 54. Where do we get qualitative data? Talk to your customers.

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  • Let’s take an Apple product for example.\nIt’s obvious to use Apple as a case study for user experience. Their whole business model is built on UX and delighting their customers.\n
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How to Build a Funnel that Will Grow Your Subscription Business the Fastest How to Build a Funnel that Will Grow Your Subscription Business the Fastest Presentation Transcript

  • How to Build a Funnel that Will Grow YourSubscription Business the Fastest Lars Lofgren Marketing Analyst - June 2012 info@kissmetrics.com - Confidential - Do not distribute
  • @larslofgren #KISSwebinar
  • We’ll cover...1 What is activation?2 4 levers for industry domination3 Common pitfalls of testing
  • WHAT ISActivation?
  • Your SaaS funnel
  • Are people using your product? Not only do people need to create an account, they need to start using your product.
  • No value = no sale
  • How to define activation Activation = the critical step people need to take in order to get value from your product
  • Facebook Activation
  • Evernote Activation
  • Instagram Activation
  • Basecamp Activation
  • Make sure to track activation It’s the most important part of your funnel and everyone forgets it.
  • FUNNELLevers
  • What’s a lever? A change to the funnel that helps you maximize users or revenue.
  • Lever #1 Free Trials
  • Trial Funnel Visited Site Trial Sign Up Activated Upgraded
  • Basecamp Free trial
  • On-ramp program is critical You have a limited number of days to make the sale. Don’t waste them.
  • What’s your on-ramp program? The new user experience (NUX) should be completely different than your regular program.
  • Shopify NUX
  • 14, 30, or 45 day trial?
  • Replacing the free trial Try replacing your free trial with a 30- day money back guarantee.
  • Lever #2 Freemium
  • Freemium Funnel Visited Site Free Sign Up Activated Upgraded
  • Looking for user growth? Freemium is where you want to be.
  • What do you limit? There’s a balance between offering enough so people sign up but not offering too much so they never upgrade.
  • Common Freemium Limits1 Dropbox = 2 GB of Storage2 Evernote = 60 MB of Uploads3 MailChimp = 2,000 Email Subscribers
  • MailChimp Freemium
  • Freemium users take forever to upgrade Very difficult to track changing behavior over time with a long-term funnel.
  • Cohort reports help a lot with freemium
  • Lever #3 UP-FRONTCredit Cards?
  • When do you collect credit card info? At account creation or at upgrade?
  • Credit cards up front Fewer people will create an account but a LOT more will upgrade (especially if the upgrade is opt-out).
  • Credit cards at upgrade Much easier to get people to create an account, much harder to get them to upgrade.
  • AWeber $1 Trial
  • Maximizing users or revenue? If users, try no credit card. If revenue, try up-front credit cards.
  • Lever #4 MONTHLY OR ANNUAL Billing
  • Users or revenue? Monthly gets more users, annual gets more revenue.
  • CrazyEgg used to be monthly
  • Your Funnel Levers 1 Free Trials 2 Freemium 3 Credit Cards Up Front 4 Monthly or Annual Billing
  • Test different levers for most growth
  • COMMONPitfalls
  • WHAT TO FOCUS ON First?
  • Look for bottlenecks in your funnel What step is a serious roadblock for people?
  • Very few people go from Activation to Upgrade
  • Use levers to fix bottlenecks
  • ARE YOU ONLY TESTING THE Funnel?
  • Variation B performs the best in this funnel
  • Variation A gives the most revenue
  • SHOULD WE TESTRandomly?
  • Why did you get your results? If you just start testing without first understanding user behavior, you won’t be learning.
  • Do you have qualitative data? Once we understand our users, then we can work the levers for the best fit.
  • Where do we get qualitative data? Talk to your customers.
  • Other options?
  • Q&A Time! Lars Lofgren llofgren@kissmetrics.com @larslofgren