SaaSFest 2015: Improve Your Retention With This One Change

David Cancel

•

Dec. 14, 2015

• •

Improve your
retention with
this one change
David Cancel
SaaSFest 2015

About David Cancel
• 5x Founder / 2x CEO
• CEO/Co-Founder, Driftt
• Chief Product Officer, HubSpot,
IPO: HUBS
• CEO/Co-Fou...

YouTube videos are no longer supported on SlideShare

View original on YouTube

Next SlideShares

Upcoming SlideShare

Incubators, Accelerators and Startups - From a Founder Perspective @ Startup ...

Loading in …3

SaaSFest 2015: Improve Your Retention With This One Change

Dec. 14, 2015

• •

David Cancel

Download to read offline

The key to sustainable growth comes down to aligning your internal and external incentives with your customers.

These slides show you how to align your companies incentives and increase customer retention and satisfaction. Lessons learned from Compete, Performable, Ghostery, HubSpot and now Driftt.

Video version: https://youtu.be/OY-HebjR-bA

1. Improve your retention with this one change David Cancel SaaSFest 2015
2. About David Cancel • 5x Founder / 2x CEO • CEO/Co-Founder, Driftt • Chief Product Officer, HubSpot, IPO: HUBS • CEO/Co-Founder, Performable acquired by Hubspot • Owner/Founder, Ghostery, acquired by Evidon • CTO/Co-Founder, Compete, acquired by WPP • Investor/Advisor/Director to Various Companies and VC Funds
3. One change can improve retention
4. Really?
5. Align Incentives
6. – Charlie Munger ‘The most important rule in management “Get the incentives right”‘
7. Simple, not easy
8. But…
9. Which incentives?
10. Two categories of incentives
11. 1. External
12. Align your pricing, product, and promotions with your customers
13. 2. Internal
14. Align your teams and departments to promote customer retention.
15. Lots of talks about #1
16. We’re here to talk about #2
17. Not what you’re thinking
18. So…
19. How do we align…
20. the incentives of our departments?
21. Best way to change behavior
22. is to leverage a cognitive bias
23. only one bias in this case
24. but ideally…
25. you should study all…
26. 25 cognitive biases
27. as described by
28. Charlie Munger
29. “The Psychology of Human Misjudgment”
30. http://cancel.im/25-coginitive-biases
31. Today we are discussing Bias #1
32. Bias 1: Reward and Punishment Super-Response Tendency
33. – Benjamin Franklin “If you would persuade, appeal to interest and not to reason”
34. Incentives and disincentives…
35. rule everything around me
36. Few businesses get this right
37. How do you align your teams today?
38. You are what you measure
39. but remember
40. There is a dark side to metrics
41. 🎲🎰🎲
42. So are your metrics aligned…
43. with your customers?
44. Most team metrics aren’t
45. Sales?
46. Marketing?
47. Product?
48. Solution
49. Customer 🎯
50. Design every teams metrics…
51. to incent customer retention
52. Examples
53. Establish baselines
54. NPS
55. eNPS
56. 1. Sales
57. Territories
58. Upgrades
59. 2. Marketing
60. Leads + Customer NPS
61. SDRs
62. 3. Engineering + Product
63. Customer Service
64. Internal Customers Too
65. No Product Roadmaps
66. Product Adoption
67. Usage Frequency
68. Shipping to Customers Daily
69. Monthly Science Fairs
70. One change can improve retention
71. Thank You.
72. Once a week I share what I’m learning. http://davidcancel.com/newsletter SUBSCRIBE

Editor's Notes

YES!

(including loyalty rewards, etc)

http://cancel.im/25-coginitive-biases

“The power that incentives and disincentives have on the actions of others cannot be overstated. Munger says this should be obvious but so many people don’t understand the how important incentives are for shaping people’s motivation to complete a task. Incentives and disincentives are extremely important in changing behavior.”

http://25cognitivebiases.com/bias-1-reward-and-punishment-super-response-tendency/

Tell HubSpot Engineering team story.

Gaming

Thought they were doing a great job despite internal and external customer frustration

put the customer at the center of your business.

at the center of each of your team’s metric

Source: http://www.driftt.com/

Not just MQLs

Not just MQLs

Own SDRs ( not sales ) if you have an inside sales model so that leads are not burned

Owns PMM, Growth, Engineering & Design

They own usage,

Whole company

Marketing

1. Improve your retention with this one change David Cancel SaaSFest 2015
2. About David Cancel • 5x Founder / 2x CEO • CEO/Co-Founder, Driftt • Chief Product Officer, HubSpot, IPO: HUBS • CEO/Co-Founder, Performable acquired by Hubspot • Owner/Founder, Ghostery, acquired by Evidon • CTO/Co-Founder, Compete, acquired by WPP • Investor/Advisor/Director to Various Companies and VC Funds
3. One change can improve retention
4. Really?
5. Align Incentives
6. – Charlie Munger ‘The most important rule in management “Get the incentives right”‘
7. Simple, not easy
8. But…
9. Which incentives?
10. Two categories of incentives
11. 1. External
12. Align your pricing, product, and promotions with your customers
13. 2. Internal
14. Align your teams and departments to promote customer retention.
15. Lots of talks about #1
16. We’re here to talk about #2
17. Not what you’re thinking
18. So…
19. How do we align…
20. the incentives of our departments?
21. Best way to change behavior
22. is to leverage a cognitive bias
23. only one bias in this case
24. but ideally…
25. you should study all…
26. 25 cognitive biases
27. as described by
28. Charlie Munger
29. “The Psychology of Human Misjudgment”
30. http://cancel.im/25-coginitive-biases
31. Today we are discussing Bias #1
32. Bias 1: Reward and Punishment Super-Response Tendency
33. – Benjamin Franklin “If you would persuade, appeal to interest and not to reason”
34. Incentives and disincentives…
35. rule everything around me
36. Few businesses get this right
37. How do you align your teams today?
38. You are what you measure
39. but remember
40. There is a dark side to metrics
41. 🎲🎰🎲
42. So are your metrics aligned…
43. with your customers?
44. Most team metrics aren’t
45. Sales?
46. Marketing?
47. Product?
48. Solution
49. Customer 🎯
50. Design every teams metrics…
51. to incent customer retention
52. Examples
53. Establish baselines
54. NPS
55. eNPS
56. 1. Sales
57. Territories
58. Upgrades
59. 2. Marketing
60. Leads + Customer NPS
61. SDRs
62. 3. Engineering + Product
63. Customer Service
64. Internal Customers Too
65. No Product Roadmaps
66. Product Adoption
67. Usage Frequency
68. Shipping to Customers Daily
69. Monthly Science Fairs
70. One change can improve retention
71. Thank You.
72. Once a week I share what I’m learning. http://davidcancel.com/newsletter SUBSCRIBE