SaaS companies, are you segmenting
your customer acquisition channels
correctly?
Thursday, January 16th, 2014
Who are we?
● Elizabeth Yin
o Co-founder and CEO of LaunchBit, a
customer acquisition platform for SaaS
companies
o ex Goo...
● Lars Lofgren
o Growth Manager at KISSmetrics,
customer analytics for SaaS companies
o University of Colorado
Boulder
Who...
● Why SaaS customer acquisition is HARD
● How to test marketing channels
● How to measure performance
● Q & A
Today’s talk...
SaaS customer acquisition is HARD
Thursday, January 16th, 2014
● SaaS products aren’t
viral
● Cohort analysis is
complicated
● Lengthy sales
process
Image credit:
http://www.flickr.com/...
How to test new customer acquisition
channels?
Thursday, January 16th, 2014
You know all these channels already...
● Pricing
○ Minimum budgets
○ CPM, CPC, CPA
● Format (style)
● Delivery
But how do they differ?
...but most importantly, PURCHASE INTENT
Image credit: http://attackofthecute.com/on/?i=11444
High intent vs. Medium intent vs. Low intent
High intent
A typical high intent funnel
Typical medium & low intent funnels
Medium &
Low intent
How much test budget do you need?
● BigDataSoft, Inc.
○ LTV: $4,500 per customer
○ SaaS rule of ⅓
■ Can spend up to $1,500 per new customer
Let’s test for p...
But sales take a long time...
● What is our cost per lead?
● Lead scoring tools
○ Work email address
○ Geolocation
○ Engagement with your site
○ Budget
○ Click through rate (CTR)
Ho...
● LaunchBit: SaaS advertising platform
○ Email ad network
○ Niche blog ad networks
○ Audience targeting
Setting up a test
How to measure your channel
performance
Thursday, January 16th, 2014
So what’s a cohort?
Main benefit = keep users separated
The 4 Cohorts I Use for SaaS
1. Visit to Sign Up
2. Sign Up to Billed
3. Sign Up by Campaign
4. Cancellation by Subscription Plan
@launchbit
Elizabeth Yin
elizabeth [at] launchbit [dot] com
@kissmetrics
Lars Lofgren
llofgren [at] kissmetrics [dot] com
...
Thanks for your time!
Thursday, January 16th, 2014
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Saa s companies, are you segmenting your customer acquisition channels correctly

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  • SaaS products are not inherently viral (http://andrewchen.co/2012/10/12/saas-products-arent-viral/)
    No silver bullets -- you need lots of lead bullets
    TONS of customer acquisition channels to keep track of
    TIme based cohorts -> difficult to segment LTV of different groups
    Complicated user acquisition flow
    lead generation
    lead nurturing
    sale
    retention
  • -How to set test goals
    -How to measure your test results
  • To get at least 1 sale:
    $1500 minimum budget
    2% leads to sale goal
    Need at least 50 leads
    At $30 per lead goal
  • -How to set test goals
    -How to measure your test results
  • -How to set test goals
    -How to measure your test results
  • -How to set test goals
    -How to measure your test results
  • -How to set test goals
    -How to measure your test results
  • -How to set test goals
    -How to measure your test results
  • -How to set test goals
    -How to measure your test results
  • -How to set test goals
    -How to measure your test results
  • Saa s companies, are you segmenting your customer acquisition channels correctly

    1. 1. SaaS companies, are you segmenting your customer acquisition channels correctly? Thursday, January 16th, 2014
    2. 2. Who are we? ● Elizabeth Yin o Co-founder and CEO of LaunchBit, a customer acquisition platform for SaaS companies o ex Google marketer o BSEE Stanford o MBA MIT Sloan SaaS customer acquisition
    3. 3. ● Lars Lofgren o Growth Manager at KISSmetrics, customer analytics for SaaS companies o University of Colorado Boulder Who are we?
    4. 4. ● Why SaaS customer acquisition is HARD ● How to test marketing channels ● How to measure performance ● Q & A Today’s talk is on ...
    5. 5. SaaS customer acquisition is HARD Thursday, January 16th, 2014
    6. 6. ● SaaS products aren’t viral ● Cohort analysis is complicated ● Lengthy sales process Image credit: http://www.flickr.com/photos/sybrenstuvel/2468506922/sizes/m/ SaaS customer acquisition is HARD
    7. 7. How to test new customer acquisition channels? Thursday, January 16th, 2014
    8. 8. You know all these channels already...
    9. 9. ● Pricing ○ Minimum budgets ○ CPM, CPC, CPA ● Format (style) ● Delivery But how do they differ?
    10. 10. ...but most importantly, PURCHASE INTENT Image credit: http://attackofthecute.com/on/?i=11444
    11. 11. High intent vs. Medium intent vs. Low intent
    12. 12. High intent A typical high intent funnel
    13. 13. Typical medium & low intent funnels Medium & Low intent
    14. 14. How much test budget do you need?
    15. 15. ● BigDataSoft, Inc. ○ LTV: $4,500 per customer ○ SaaS rule of ⅓ ■ Can spend up to $1,500 per new customer Let’s test for performance
    16. 16. But sales take a long time... ● What is our cost per lead?
    17. 17. ● Lead scoring tools ○ Work email address ○ Geolocation ○ Engagement with your site ○ Budget ○ Click through rate (CTR) How to determine lead quality
    18. 18. ● LaunchBit: SaaS advertising platform ○ Email ad network ○ Niche blog ad networks ○ Audience targeting Setting up a test
    19. 19. How to measure your channel performance Thursday, January 16th, 2014
    20. 20. So what’s a cohort?
    21. 21. Main benefit = keep users separated
    22. 22. The 4 Cohorts I Use for SaaS
    23. 23. 1. Visit to Sign Up
    24. 24. 2. Sign Up to Billed
    25. 25. 3. Sign Up by Campaign
    26. 26. 4. Cancellation by Subscription Plan
    27. 27. @launchbit Elizabeth Yin elizabeth [at] launchbit [dot] com @kissmetrics Lars Lofgren llofgren [at] kissmetrics [dot] com Questions?
    28. 28. Thanks for your time! Thursday, January 16th, 2014

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