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Bringing Your SaaS
Apps to Market
Josh Martin
#Logi16
Josh Martin
Product Marketing Manager
Logi Analytics
Josh.Martin@logianalytics.com
“I cannot name a single song by Taylor Swift.”
ABOUT ME
2 @TheRogueAnalyst
#Logi16
• “What an Amazing Presentation”
• “It hasn’t even started yet and my app is already 40%
better”
• “A conference session for the ages”
Some Social Suggestions…
@TheRogueAnalyst3
#Logi16
The impact of SaaS
Finding & Winning Users
Why Poor Planning Leads to Failure
Conclusions
What You Are Going to Learn Today
@TheRogueAnalyst4
YOUR CHALLENGE
SaaS has changed expectations— making it harder to win, retain, and
monetize customers
#Logi16
SaaS Impact on Software Companies
6 @TheRogueAnalyst
Abundant Free Trials Short/No Contracts Low PricesFree Upgrades
#Logi16
The 5 Essentials for Success
7
1. Spend ad dollars in the right channels
2. Optimize landing pages for rapid conversion
3. Clearly define tiers of service (and value)
4. Develop a funnel strategy for trials
5. Mix and match business models
@TheRogueAnalyst
#Logi16
Attention spans are shortening….
8
Leanplum; Hubspot Blog 2014; MarketingLand Blog 2015
15
Seconds
Before Abandoning
30
Seconds
Before Abandoning
.1%
Engagement
Rate on
@TheRogueAnalyst
Finding & Monetizing Users in a SaaS World
“The harder I work, the luckier I become.”
- Samuel Goldwyn
#Logi16
Spending Priority
Step 1: Advertise in the Right Channel
10
You need a media strategy that mixes paid advertising with free brand-building
channels
Finding the right leads Finding engaged users Finding the right
personas
Brand building
@TheRogueAnalyst
#Logi16
Step 2: Get the Download
11
Optimize Landing Pages Match Copy to Your Ad Offer Social Proof
@TheRogueAnalyst
#Logi16
Step 3: Price & Package Clearly
12
• Avoid multiple pricing options
– Bundle features/services/benefits into tiers
– Simplify choices for mass audience
– Limit number of tiers
– One or two major reasons for upsell
• Entry tier must be more than viable
– Basic/trial: entice user to purchase
– Freemium: drive usage for vast majority
• Requires that you really understand
distinct needs of customer segments
@TheRogueAnalyst
#Logi16
Step 4: Offer an Easily Accessible Trial
13
Unlimited
Trial Type Trial Payment Trial Access
Limited
Yes, Sales
Contact
No,
Simple
Download
Users get feel
for the service
User pain
fuels upsell
opportunity
Move to auto
bill post trial
Increase
potential
downloaders
Develop a
relationship
More non-
serious
downloaders
Trial is too
overwhelming
Users deem
service not
good enough
Limit potential
downloaders
No way to
transition to
paid service
Severely inhibit
number of
downloaders
Less serious
downloaders
Credit
Card
No Credit
Card
Unlimited
No Credit
Card
No, Simple
Download
@TheRogueAnalyst
#Logi16
Step 5: Mix & Match Business Models
14
Subscription Business Model
Pros: Recurring revenue stream
Cons: Churn risk, Continuous marketing
Upgraded Tiers
Pros
• Unlimited upside
• Product extensions
Cons
• Requires ongoing
development
• Must master marketing
Transactions
Pros
• Guaranteed revenue
• Low churn risk
Cons
• One-time revenue
• Need to offer ongoing
support
Services
Pros
• Unlimited upside
• Expanded target market
Cons
• Invest in resources
• Not enough users could
result in loss
Advertising
Pros
• Unlimited upside
• Allows for freemium tier of
service
Cons
• Risk alienating users
• Complicated to set up
and run
@TheRogueAnalyst
Great Examples to Emulate
“Give a man a fire and he's warm for the day. But set fire to him and he's warm for the rest of his life.”
- Terry Pratchett
#Logi16
Ads to Emulate: Twitter, Google, LinkedIn
16 @TheRogueAnalyst
#Logi16
Trials to Emulate: Mozenda – Web Scraping
17
Free Trial featured on
home page
Usage-Based Trial
Full Access
No CC Required
@TheRogueAnalyst
#Logi16
Trial/Pricing to Emulate: Wishpond – Landing Pages
18
Free Trial featured on
home page
Clearly defined tiers
Time-based trial
Explicit Pricing
@TheRogueAnalyst
#Logi16
Pricing to Emulate: Google Drive - Storage
19
Robust Free Tier
Clearly defined tiers
Explicit Pricing
@TheRogueAnalyst
#Logi16
Business Models to Emulate: LinkedIn
20
Subscription Business Model
Upgraded Tiers Transactions Services Advertising
@TheRogueAnalyst
A Cautionary Tale
“Always remember that the crowd that applauds your coronation is the same crowd that will applaud your
beheading. People like a show.”
- Terry Pratchett
#Logi16
Warning: Your Conversion Rate will Stink
22
“We have about 80 million users globally, and that’s a combined number for free and paid. Our
conversion rate increases linearly with cohort age, so the longer you use Evernote, the more
likely you are to convert to premium”
- Evernote CEO Phil Libin
• Slack is reported to have a 30% conversion rate
• Dropbox has a 4% conversion rate
• Google Drive is .5%
Source: process.st
@TheRogueAnalyst
#Logi16
How Did Evernote Do?
23
Trial PricingAds
Business
Models
Get the
Download
@TheRogueAnalyst
#Logi16
1. Product Extensions Failed
– Clearly, Skitch, Food
2. Partnerships failed to deliver
– Lifestyle product store closed in February (Notebooks, bags, etc.)
3. Didn’t stay ahead of the competition
– Microsoft OneNote, Google Keep, Apple Notes
4. Failed to better differentiate its service tiers
– Poor conversion rates from free to paid
– Failed to understand what would drive usage
– No other business model to monetize free users
5. New Pricing Hurt Highest Value Customers Most
What Else Happened to Evernote?
24 @TheRogueAnalyst
#Logi16
Some Headlines
25 @TheRogueAnalyst
#Logi16
Key Takeaways
26
 Create a checklist to review your current customer acquisition
strategies
 Focus on consumer-style trial, adoption, pricing packages,
and behavioral analysis
 Consider what features might allow for the creation of new
service tiers
@TheRogueAnalyst
Learn more with the
Business Intelligence
Buyer’s Guide

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Bringing Your SaaS Apps to Market Successfully

  • 1. Bringing Your SaaS Apps to Market Josh Martin
  • 2. #Logi16 Josh Martin Product Marketing Manager Logi Analytics Josh.Martin@logianalytics.com “I cannot name a single song by Taylor Swift.” ABOUT ME 2 @TheRogueAnalyst
  • 3. #Logi16 • “What an Amazing Presentation” • “It hasn’t even started yet and my app is already 40% better” • “A conference session for the ages” Some Social Suggestions… @TheRogueAnalyst3
  • 4. #Logi16 The impact of SaaS Finding & Winning Users Why Poor Planning Leads to Failure Conclusions What You Are Going to Learn Today @TheRogueAnalyst4
  • 5. YOUR CHALLENGE SaaS has changed expectations— making it harder to win, retain, and monetize customers
  • 6. #Logi16 SaaS Impact on Software Companies 6 @TheRogueAnalyst Abundant Free Trials Short/No Contracts Low PricesFree Upgrades
  • 7. #Logi16 The 5 Essentials for Success 7 1. Spend ad dollars in the right channels 2. Optimize landing pages for rapid conversion 3. Clearly define tiers of service (and value) 4. Develop a funnel strategy for trials 5. Mix and match business models @TheRogueAnalyst
  • 8. #Logi16 Attention spans are shortening…. 8 Leanplum; Hubspot Blog 2014; MarketingLand Blog 2015 15 Seconds Before Abandoning 30 Seconds Before Abandoning .1% Engagement Rate on @TheRogueAnalyst
  • 9. Finding & Monetizing Users in a SaaS World “The harder I work, the luckier I become.” - Samuel Goldwyn
  • 10. #Logi16 Spending Priority Step 1: Advertise in the Right Channel 10 You need a media strategy that mixes paid advertising with free brand-building channels Finding the right leads Finding engaged users Finding the right personas Brand building @TheRogueAnalyst
  • 11. #Logi16 Step 2: Get the Download 11 Optimize Landing Pages Match Copy to Your Ad Offer Social Proof @TheRogueAnalyst
  • 12. #Logi16 Step 3: Price & Package Clearly 12 • Avoid multiple pricing options – Bundle features/services/benefits into tiers – Simplify choices for mass audience – Limit number of tiers – One or two major reasons for upsell • Entry tier must be more than viable – Basic/trial: entice user to purchase – Freemium: drive usage for vast majority • Requires that you really understand distinct needs of customer segments @TheRogueAnalyst
  • 13. #Logi16 Step 4: Offer an Easily Accessible Trial 13 Unlimited Trial Type Trial Payment Trial Access Limited Yes, Sales Contact No, Simple Download Users get feel for the service User pain fuels upsell opportunity Move to auto bill post trial Increase potential downloaders Develop a relationship More non- serious downloaders Trial is too overwhelming Users deem service not good enough Limit potential downloaders No way to transition to paid service Severely inhibit number of downloaders Less serious downloaders Credit Card No Credit Card Unlimited No Credit Card No, Simple Download @TheRogueAnalyst
  • 14. #Logi16 Step 5: Mix & Match Business Models 14 Subscription Business Model Pros: Recurring revenue stream Cons: Churn risk, Continuous marketing Upgraded Tiers Pros • Unlimited upside • Product extensions Cons • Requires ongoing development • Must master marketing Transactions Pros • Guaranteed revenue • Low churn risk Cons • One-time revenue • Need to offer ongoing support Services Pros • Unlimited upside • Expanded target market Cons • Invest in resources • Not enough users could result in loss Advertising Pros • Unlimited upside • Allows for freemium tier of service Cons • Risk alienating users • Complicated to set up and run @TheRogueAnalyst
  • 15. Great Examples to Emulate “Give a man a fire and he's warm for the day. But set fire to him and he's warm for the rest of his life.” - Terry Pratchett
  • 16. #Logi16 Ads to Emulate: Twitter, Google, LinkedIn 16 @TheRogueAnalyst
  • 17. #Logi16 Trials to Emulate: Mozenda – Web Scraping 17 Free Trial featured on home page Usage-Based Trial Full Access No CC Required @TheRogueAnalyst
  • 18. #Logi16 Trial/Pricing to Emulate: Wishpond – Landing Pages 18 Free Trial featured on home page Clearly defined tiers Time-based trial Explicit Pricing @TheRogueAnalyst
  • 19. #Logi16 Pricing to Emulate: Google Drive - Storage 19 Robust Free Tier Clearly defined tiers Explicit Pricing @TheRogueAnalyst
  • 20. #Logi16 Business Models to Emulate: LinkedIn 20 Subscription Business Model Upgraded Tiers Transactions Services Advertising @TheRogueAnalyst
  • 21. A Cautionary Tale “Always remember that the crowd that applauds your coronation is the same crowd that will applaud your beheading. People like a show.” - Terry Pratchett
  • 22. #Logi16 Warning: Your Conversion Rate will Stink 22 “We have about 80 million users globally, and that’s a combined number for free and paid. Our conversion rate increases linearly with cohort age, so the longer you use Evernote, the more likely you are to convert to premium” - Evernote CEO Phil Libin • Slack is reported to have a 30% conversion rate • Dropbox has a 4% conversion rate • Google Drive is .5% Source: process.st @TheRogueAnalyst
  • 23. #Logi16 How Did Evernote Do? 23 Trial PricingAds Business Models Get the Download @TheRogueAnalyst
  • 24. #Logi16 1. Product Extensions Failed – Clearly, Skitch, Food 2. Partnerships failed to deliver – Lifestyle product store closed in February (Notebooks, bags, etc.) 3. Didn’t stay ahead of the competition – Microsoft OneNote, Google Keep, Apple Notes 4. Failed to better differentiate its service tiers – Poor conversion rates from free to paid – Failed to understand what would drive usage – No other business model to monetize free users 5. New Pricing Hurt Highest Value Customers Most What Else Happened to Evernote? 24 @TheRogueAnalyst
  • 26. #Logi16 Key Takeaways 26  Create a checklist to review your current customer acquisition strategies  Focus on consumer-style trial, adoption, pricing packages, and behavioral analysis  Consider what features might allow for the creation of new service tiers @TheRogueAnalyst
  • 27. Learn more with the Business Intelligence Buyer’s Guide

Editor's Notes

  1. Be clear, concise and have a compelling call to action Twitter Paid: Target users that… Like your company, competitors, relevant hashtags Free: Target influencers with… Re-tweets, likes and conversation to gain access to their followers Linkedin Paid: Target users that With ads & sponsored content that work in relevant industries and have appropriate job titles Free: You should… Write compelling content with a CTA, comment on popular articles, and participate in relevant groups (but don’t spend too much time on this) Business & Consumer Channels Develop relationships with publications to garner reviews and coverage for your software Google AdWords Create pithy ads (Google offers more words in headlines now) targeting words you will rank for and not those that will net you a page 2 or 3 search result.
  2. On June 28, Evernote made significant changes to its pricing strategy big changes including: Price Increases Service Limitations