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3 Techniques to Increase Conversions for Your SaaS Business

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• 1. Techniques to Increase ConversionsFor Your SaaS BusinessHiten ShahKISSmetrics Webinar • February 22nd, 2011
• 2. Twitter Hash Tag #measure
• 3. SaaS: Software as a Service
• 4. SaaS Sales Models• Customer Self Service (sign up and pay online) • Examples: 37signals, Zoho, Dropbox• Transactional Sales (inside sales)
• 5. SaaS Pricing Models• Paid Sign Up (no free trial or free plan) • Examples: CrazyEgg, Mozy• Free Trials (timed trials) • Examples: 37signals, Backupify• Freemium (free forever → upgrades) • Examples: YouSendIt, LogMeIn, Evernote
• 6. CrazyEgg Pricing BeforeFreemium (free forever → upgrades) Visited Site Free Sign Up Upgraded
• 7. CrazyEgg Pricing AfterPaid Sign Up (no free trial or free plan) Visited Site Sign Up Pay
• 8. CrazyEgg Results• Sign ups decrease by 10x• Doubled revenue in the first month• 2 years later, 25% of the revenue is from free customers• There is a free plan in CrazyEgg’s future =)
• 9. Funnel Testing & Optimization
• 10. Macro Conversions“ It’s important not to get distracted by intermediate metrics like the click-through rate of the button itself...we only care about the customer behaviors that lead to something useful” Eric Ries, The Lean Startup
• 11. Activation• Web analytics application • Install javascript code and start tracking data• Project management application • Create first project and invite a person• Customer relationship management application • Add their first contact and follow up with them• Customer support application • Receive and respond to a customer support request
• 12. SaaS Macro Conversion Funnels
• 13. 5 Step Process for Funnel Optimization
• 14. Baseline your macro conversions
• 15. Identify optimization opportunities• Which step has the highest drop off?
• 16. Gather qualitative data• Identify conversion barriers• Surveying • Survey.io, KISSinsights, Wufoo, SurveyMonkey, etc...• Usability Testing • In-person, UserTesting.com, FiveSecondTest, etc...• Example • Task completion survey http://kiss.ly/biUD9L • SaaS plans page survey http://kiss.ly/f9ZlAb
• 17. Create and implement A/B tests• Many ways to improve funnels• Modify your steps • Combine, remove or change the order of steps. • Add UI elements to guide users• Test your designs • Headlines, images, buttons, microcopy, etc... • Try radical variations
• 18. Measure against your baseline, rinse & repeat
• 19. Segmenting Your Customers
• 20. Account type segmentation http://rowfeeder.com/plans
• 21. Company size segmentation http://box.net/pricing
• 22. Custom segmentation
• 23. Custom segmentation data
• 24. Testing Your Call to Actions
• 25. Funnel A/B Testing Rules!
• 26. Survey, segment, analyze & then create tests 27. Segment and analyze
• 28. Don’t copy “best practices” blindly
• 29. Learn what works best for your customers
• 30. 3 Techniques for Increasing SaaS Conversions

Published in: Technology

3 Techniques to Increase Conversions for Your SaaS Business

  1. 1. Techniques to Increase ConversionsFor Your SaaS BusinessHiten ShahKISSmetrics Webinar • February 22nd, 2011
  2. 2. Twitter Hash Tag #measure
  3. 3. SaaS: Software as a Service
  4. 4. SaaS Sales Models• Customer Self Service (sign up and pay online) • Examples: 37signals, Zoho, Dropbox• Transactional Sales (inside sales) • Examples: HubSpot, Salesforce, Zendesk• Enterprise Sales ("elephant" hunting) • Examples: BazaarVoice, BrightEdge, Workday• Hybrid (a little, or lot of everything) • Examples: YouSendIt, LogMeIn, Google Apps
  5. 5. SaaS Pricing Models• Paid Sign Up (no free trial or free plan) • Examples: CrazyEgg, Mozy• Free Trials (timed trials) • Examples: 37signals, Backupify• Freemium (free forever → upgrades) • Examples: YouSendIt, LogMeIn, Evernote
  6. 6. CrazyEgg Pricing BeforeFreemium (free forever → upgrades) Visited Site Free Sign Up Upgraded
  7. 7. CrazyEgg Pricing AfterPaid Sign Up (no free trial or free plan) Visited Site Sign Up Pay
  8. 8. CrazyEgg Results• Sign ups decrease by 10x• Doubled revenue in the first month• 2 years later, 25% of the revenue is from free customers• There is a free plan in CrazyEgg’s future =)
  9. 9. Funnel Testing & Optimization
  10. 10. Macro Conversions“ It’s important not to get distracted by intermediate metrics like the click-through rate of the button itself...we only care about the customer behaviors that lead to something useful” Eric Ries, The Lean Startup
  11. 11. Activation• Web analytics application • Install javascript code and start tracking data• Project management application • Create first project and invite a person• Customer relationship management application • Add their first contact and follow up with them• Customer support application • Receive and respond to a customer support request
  12. 12. SaaS Macro Conversion FunnelsPaid Sign Up (no free trial or free plan) Visited Site Sign Up Pay $ ActivatedFree Trials (timed trials & product limit trials) Visited Site Trial Sign Up Activated Upgraded $Freemium (free forever → upgrades) Visited Site Free Sign Up Activated Upgraded $
  13. 13. 5 Step Process for Funnel Optimization1. Baseline your macro conversions2. Identify optimization opportunities3. Gather qualitative data4. Create and implement A/B tests5. Measure against your baseline, rinse & repeat
  14. 14. Baseline your macro conversions
  15. 15. Identify optimization opportunities• Which step has the highest drop off?
  16. 16. Gather qualitative data• Identify conversion barriers• Surveying • Survey.io, KISSinsights, Wufoo, SurveyMonkey, etc...• Usability Testing • In-person, UserTesting.com, FiveSecondTest, etc...• Example • Task completion survey http://kiss.ly/biUD9L • SaaS plans page survey http://kiss.ly/f9ZlAb
  17. 17. Create and implement A/B tests• Many ways to improve funnels• Modify your steps • Combine, remove or change the order of steps. • Add UI elements to guide users• Test your designs • Headlines, images, buttons, microcopy, etc... • Try radical variations
  18. 18. Measure against your baseline, rinse & repeat
  19. 19. Segmenting Your Customers
  20. 20. Account type segmentation http://rowfeeder.com/plans
  21. 21. Company size segmentation http://box.net/pricing
  22. 22. Custom segmentation
  23. 23. Custom segmentation data
  24. 24. Testing Your Call to Actions
  25. 25. Funnel A/B Testing Rules!
  26. 26. Survey, segment, analyze & then create tests Customer Development Survey http://survey.io
  27. 27. Segment and analyze
  28. 28. Don’t copy “best practices” blindly How to Increase Sign-ups by 200% http://kiss.ly/seeplansandpricing
  29. 29. Learn what works best for your customers A Beginner’s Guide To A/B Testing: Exceptional Web Copy http://blog.kissmetrics.com/ab-testing-web-copy/
  30. 30. 3 Techniques for Increasing SaaS Conversions Baseline then optimize your funnels Segment your customers Test your call to actions
  31. 31. You’ve got questions... How many of my visitors are converting into signed-up customers? How many of those signups are upgrading? How many of last month’s customers are still around this month? How long does it take, on average, for a visitor to become a customer? How much am I making each day in revenues? How much is the average customer paying me each month? We have the answers! Email us to learn more about our SaaS APIs saas@kissmetrics.comHiten Shahhshah@kissmetrics.com • 650.241.4531

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