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Josh Martin
Product Marketing Manager
Logi Analytics
Josh.Martin@logianalytics.com
“I cannot name a single song by Taylor Swift.”
ABOUT ME
2 @TheRogueAnalyst
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• “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…
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The impact of SaaS
Finding & Winning Users
Why Poor Planning Leads to Failure
Conclusions
What You Are Going to Learn Today
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5. YOUR CHALLENGE
SaaS has changed expectations— making it harder to win, retain, and
monetize customers
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The 5 Essentials for Success
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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
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Attention spans are shortening….
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Leanplum; Hubspot Blog 2014; MarketingLand Blog 2015
15
Seconds
Before Abandoning
30
Seconds
Before Abandoning
.1%
Engagement
Rate on
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9. Finding & Monetizing Users in a SaaS World
“The harder I work, the luckier I become.”
- Samuel Goldwyn
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Spending Priority
Step 1: Advertise in the Right Channel
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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
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Step 2: Get the Download
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Optimize Landing Pages Match Copy to Your Ad Offer Social Proof
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Step 3: Price & Package Clearly
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• 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
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Step 4: Offer an Easily Accessible Trial
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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
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Step 5: Mix & Match Business Models
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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
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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
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Trials to Emulate: Mozenda – Web Scraping
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Free Trial featured on
home page
Usage-Based Trial
Full Access
No CC Required
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Trial/Pricing to Emulate: Wishpond – Landing Pages
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Free Trial featured on
home page
Clearly defined tiers
Time-based trial
Explicit Pricing
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Pricing to Emulate: Google Drive - Storage
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Robust Free Tier
Clearly defined tiers
Explicit Pricing
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Business Models to Emulate: LinkedIn
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Subscription Business Model
Upgraded Tiers Transactions Services Advertising
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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
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Warning: Your Conversion Rate will Stink
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“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
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How Did Evernote Do?
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Trial PricingAds
Business
Models
Get the
Download
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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?
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Key Takeaways
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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
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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.
On June 28, Evernote made significant changes to its pricing strategy big changes including:
Price Increases
Service Limitations