In product growth hacking to increase revenue

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Customer Success Play by Harpreet Singh, Senior Director of Product Management at CloudBees at the 2014 Customer Success Summit.

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  • So, as software developers, we really should be doing for our customers what we prefer ourselves.
  • In the cloud, as-a-service world, with a freemium (sign up for free and try it) model or a time-trial model, it’s different. First of all the evaluation cycle is short. People try it out and decide without ever talking to you or a salesperson whether they want to invest more in it. Once they get serious, they might move to different tiered pricing that is tied to the level of usage, users, or something. In this world, Marketing’s more traditional activities are to drive the leads from anonymous visitors into known users. The other parts are now engaged in by people with different titles – evangelists, growth hacker (a trendy silicon valley term!), and customer success managers.
  • Let’s make it more concrete by using CloudBees as an example. What we’re interested in is how people are using our service. Part of that is: what service are they using – like “what software has someone bought” in the old packaged software world. But more specifically, we want to know how engaged they are. Are they doing builds? Are they deploying new apps on a regular basis. Are they adding new users?
  • But in our as-a-service world, we can so a lot better job. (Forgive my making a garbage collection joke here on the slide by using name of object spaces and collectors!) In our world, we have people who sign up but don’t’ do anything after looking around. We classify them as “onboarding”, and we engage with them differently than we do with those who dig in and actually start to use the service.
  • But probably more importantly, once someone has stepped up to paying for the service, we have an opportunity to keep them happy using it in ways that are obviously just not possible with packaged software. Of course, part of the trick here is to know your audience, which being mostly developers, just want to be left alone.
  • And this gives us some data that helps us determine where to put our investments. Now this changes because we roll out new ClickStarts every week, and some are accompanied by more visibility than others, but this is actual data we also share on our developer blog. What you can see here is that Play is very popular on CloudBees, as are the traditional Java stacks mixed with JavaScript UI frameworks like Backbone. Node.js is also popular, primarily because people want to find out what it’s about as far as we can tell. At any rate, we’re getting better at sorting out causality on these technologies as we go along. Today the data is there, but it’s hard to interpret.
  • In product growth hacking to increase revenue

    1. 1. Produced by Customer Success Summit 2014 Customer Success Summit 2014 In-product growth hacking to increase revenue Harpreet Singh Senior Director, Product Management, CloudBees @singh_harpreet hsingh@cloudbees.com
    2. 2. Produced by Customer Success Summit 2014 •  #1 Continuous Delivery PaaS •  Global startup: –  Aus, NZ, France, Switzerland, Netherlands, Belgium, Ireland, US (MA, VA, TX, IL, WA, CA) •  The most fun place I have ever worked J 2  
    3. 3. Produced by Customer Success Summit 2014 What led me to Customer Success •  Setup GlassFish monetization – Sun’s application server •  Customer Success –  “People like being helped and not sold to” •  @CloudBees have setup, managed the Jenkins biz establishing it from 0 -> multi-million 3  
    4. 4. Produced by Customer Success Summit 2014 –  improve and fine-tune what I’m offering? –  connect more intelligently with my users? –  help prospects succeed on the platform? –  convert free users to paying customers? How can I… 4  
    5. 5. Produced by Customer Success Summit 2014 When my customers are… under  immense  -me  to  market   pressures   smart  developers,  focused  on  delivering  cool   technologies  
    6. 6. Produced by Customer Success Summit 2014 Fairly   sta*c   customer   lists   Lifecycle Marketing in the Packaged Software World Lead   Nurturing   Considera*on   Sale   Post   Sale   They  no-ced  us!   This  is  why  we  are  special   Seems  like  they  might  buy   Sold!   Upsell!   Most  systems  in  house:  Email  marke-ng,  customer  lists   Marke*ng  
    7. 7. Produced by Customer Success Summit 2014 Lifecycle Marketing in the Cloud Era (Freemium Model) Lead   Nurturing   Considera*on   Free  Tier   Base  Tier   Add  ons   Enterprise   Tier   Post   Sale   Most  systems  external:  Hosted,  best-­‐of-­‐breed  services   Users  can  move  freely  up     and  down  the  -ers   Evangelist     “Growth     Hacker”     Customer   Success   Manager   7   Short  cycle,  as  users     can  try  the  free  -er  and   make  the  determina-on  on     product  feasibility  themselves   Marke*ng  
    8. 8. Produced by Customer Success Summit 2014 Lessons Learned: Fail fast •  Lesson #1 –  Monitor everything – data, data, data… •  Lesson #2 – –  Health-based metrics. Flag and address dis- engagements real time •  Lesson #3 – –  Activity-based Metrics: Hypothesis testing & fail fast 8  
    9. 9. Produced by Customer Success Summit 2014 Subscribed to a service •  Jenkins •  RUN@cloud (Deployment PaaS) •  Forge (Git, SVN) •  DB service •  Partner service –  MongoHQ –  NewRelic –  PaperTrail –  … Performed an action •  Web UI login •  Jenkins –  Created a Job, Installed a plugin, Ran a job… •  Deployment PaaS –  Deployed an app, restarted app, app stopped, app hibernated… •  Others –  Canceled account, added a paid DB, added a user Monitor everything Play: Sensors everywhere in the product
    10. 10. Produced by Customer Success Summit 2014 •  Time and activity based •  Grade users based on risk profile •  Separate onboarding from established users •  Offer hands-on help for established users Health-based metrics Play: Flag and address dis-engagements real time 10   Green   Sign-­‐Up   Yellow   Red   Lost   Use?   Use?   Use?   1  wk   2  wks   3  wks   4  wks   Time   Onboarding   Yellow   Red   Lost   Use?   Use?   Established   Green   Use?   Y   Y   Y   N   N   N   N   N   N   Y   Y   Y   Convert  
    11. 11. Produced by Customer Success Summit 2014 11   •  Track number and types of activity over time –  Scale and adjust “smart” communication over time •  Users can become inactive and then reactivate •  Technical, not sales communication Green   Paid   Yellow   Alarm  Bells   Lost   Use?   Use?   Use?   1  wk   2  wks   3  wks   4  wks   Time   Paying   Y   Y   Y   N   N   N   Health-based metrics Play: Flag and address dis-engagements real time
    12. 12. Produced by Customer Success Summit 2014 •  Popularity of Play! –  More articles here –  Reach out to the community –  Better monitoring –  … 12   Play2   Java  EE6  WP   Hibernate+Tomcat   Spring+Hibernate  CF   Grails  PetClinic  CF   Node.js   Glassfish   AngularJS   Java  GAE   Ac*vi*  Explorer   Sencha+Clojure   Facebook   Backbone+JAX-­‐RS   Scala+LiU   Java  Sauce   Clojure/Compojure   Java  EE6  Sauce   Activity-based metrics Play: Hypothesis testing and fail fast
    13. 13. Produced by Customer Success Summit 2014 Impact of Developer Success Engineers 13  
    14. 14. Produced by Customer Success Summit 2014 Established  respond  2:1  over  onboarding   Insight into behavior with the pre-revenue funnel 30%  on-­‐boarders  @  Risk   10%  are  sales  opportuni-es  30%  of  paid  customers  were   helped  by  developer  success   engineers  just  before  they   converted  
    15. 15. Produced by Customer Success Summit 2014 Q & A 15  
    16. 16. Produced by Customer Success Summit 201416   Winning in 2014! Think  Big  Start  Small  Move>>Fast!  

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