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[CXL Live 16] SaaS Optimization - Effective Metrics, Process and Hacks by Stephen Pavlovich

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Stephen will be talking on SaaS optimization strategy, including:

- The data, insight and metrics you need to track to identify opportunity
- Flow optimization: from landing page to trial, usage, purchase and retention
- Problems and opportunities: e.g. how do you test a landing page when the sale happens 14 or 30 days later? How do you manage testing across multiple KPIs simultaneously? How do you understand and segment your key product offering?

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[CXL Live 16] SaaS Optimization - Effective Metrics, Process and Hacks by Stephen Pavlovich

  1. 1. SaaS Optimization Effective Process, Metrics and Hacks Stephen Pavlovich Conversion.com 31 March 2016
  2. 2. Testing Strategy Insight Data KPIs Goals
  3. 3. Testing Strategy Insight Data KPIs Goals
  4. 4. Inactive trial Active trial Lapsed trial + no sale Current customers Lapsed customers
  5. 5. “If you could make one change to the product, what would it be?”
  6. 6. “Video conferencing”
  7. 7. +19%
  8. 8. Free trials do not pay the bills. @conversion_com
  9. 9. Don’t convert to trial before the user is sold on the product. @conversion_com
  10. 10. Testing Strategy Insight Data KPIs Goals
  11. 11. “But how can you optimize for sales with a 14 or 30-day trial?”
  12. 12. Stage Day Phase Focus Goals KPIs 1 1 Acquire Landing page Sign-up page Trial UVs Trials SaaS metrics
  13. 13. Stage Day Phase Focus Goals KPIs 1 1 Acquire Landing page Sign-up page Trial UVs Trials 2 1–2 Activate Product Email Active user Product usage SaaS metrics
  14. 14. Stage Day Phase Focus Goals KPIs 1 1 Acquire Landing page Sign-up page Trial UVs Trials 2 1–2 Activate Product Email Active user Product usage 3 14–30 Monetize Plans page Checkout Customer Sales MRR SaaS metrics
  15. 15. Stage Day Phase Focus Goals KPIs 1 1 Acquire Landing page Sign-up page Trial UVs Trials 2 1–2 Activate Product Email Active user Product usage 3 14–30 Monetize Plans page Checkout Customer Sales MRR 4 <90 Retain Product Email LTV Churn SaaS metrics
  16. 16. Stage Day Phase Focus Goals KPIs 1 1 Acquire Landing page Sign-up page Trial UVs Trials 2 1–2 Activate Product Email Active user Product usage 3 14–30 Monetize Plans page Checkout Customer Sales MRR 4 <90 Retain Product Email LTV Churn + – Upsell Product Email Increase revenue Negative churn ARPA SaaS metrics
  17. 17. Stage Day Phase Focus Goals KPIs 1 1 Acquire Landing page Sign-up page Trial UVs Trials 2 1–2 Activate Product Email Active user Product usage 3 14–30 Monetize Plans page Checkout Customer Sales MRR 4 <90 Retain Product Email LTV Churn + – Upsell Product Email Increase revenue Negative churn ARPA + – Refer Product Email Refer-a-friend Virality Viral coefficient SaaS metrics
  18. 18. Four options for KPIs
  19. 19. Stage Phase 1 Acquire 2 Activate 3 Monetize 4 Retain + Upsell + Refer #1 Visit > Trial
  20. 20. Stage Phase 1 Acquire 2 Activate 3 Monetize 4 Retain + Upsell + Refer #1 Visit > Trial ⊕ Quick to test ⊖ May not correlate to sales
  21. 21. Stage Phase 1 Acquire 2 Activate 3 Monetize 4 Retain + Upsell + Refer #2 Visit > Sale
  22. 22. Stage Phase 1 Acquire 2 Activate 3 Monetize 4 Retain + Upsell + Refer #2 Visit > Sale ⊕ Better indication of revenue ⊖ Increased test duration
  23. 23. Stage Phase 1 Acquire 2 Activate 3 Monetize 4 Retain + Upsell + Refer #3 Visit > Qualified trial
  24. 24. Stage Phase 1 Acquire 2 Activate 3 Monetize 4 Retain + Upsell + Refer #3 Visit > Qualified trial ⊕ Quick to test ⊕ Closer correlation to sales ⊖ Need to develop reliable lead scoring model
  25. 25. Stage Phase 1 Acquire 2 Activate 3 Monetize 4 Retain + Upsell + Refer #4 Visit > Active user
  26. 26. 4: Visit to active user
  27. 27. Stage Phase 1 Acquire 2 Activate 3 Monetize 4 Retain + Upsell + Refer #4 Visit > Active user ⊕ Quick to test ⊕ High correlation to sales ⊖ Action needs to happen within 1–2 days
  28. 28. In SaaS conversion optimization, test through to active trials. @conversion_com
  29. 29. Testing Strategy Insight Data KPIs Goals
  30. 30. The “a-ha” moment is the tipping point for retention. @conversion_com
  31. 31. Impact of churn on growth
  32. 32. Impact of churn on growth
  33. 33. Impact of churn on growth
  34. 34. Fix churn before acquisition – it will flatline growth. @conversion_com
  35. 35. “Knowing this allowed us to do a lot to get new users to their “a-ha” moment quickly.” Chamath Palihapitiya
  36. 36. Deliver the “a-ha” moment ASAP – even before the user signs up. @conversion_com
  37. 37. Use simple Q&A to sell to and segment your audience. @conversion_com
  38. 38. http://conversionxl.com/10-principles-of-effective-pricing-pages/
  39. 39. $6.99 $9.99
  40. 40. $6.99 $9.99 Quantity sold:
  41. 41. “How do we increase profit?”
  42. 42. 1. Increase the price of the $6.99 bottle. 2. Decrease the price of the $9.99 bottle. 3. Change the prices to $6.97 and $9.97. 4. Offer 10% off if you buy three. 5. Something else…
  43. 43. $6.99 $9.99 Quantity sold:
  44. 44. $6.99 $9.99 Quantity sold: $19.99
  45. 45. $6.99 $9.99 Quantity sold: $19.99
  46. 46. Revenue +40%
  47. 47. Free $0/month Basic $25/month Pro $100/month Enterprise $300/month ✔ Feature 1 ✔ Feature 1 ✔ Feature 2 ✔ Feature 3 ✔ Feature 1 ✔ Feature 2 ✔ Feature 3 ✔ Feature 4 ✔ Feature 5 ✔ Feature 1 ✔ Feature 2 ✔ Feature 3 ✔ Feature 4 ✔ Feature 5 ✔ Feature 6 ✔ Feature 7 ✔ Feature 8 Get started Get started Get started Get started
  48. 48. Sales +100%
  49. 49. Test “decoy” price plans + volume-based pricing. @conversion_com
  50. 50. Stephen Pavlovich Founder & CEO E: stephen.pavlovich@conversion.com M: +44 7970 428029
  51. 51. Testing Strategy Insight Data KPIs Goals

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