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Blume SaaS event in 2012
The document discusses an upcoming event on SaaS and cloud computing. It includes an agenda with topics on SaaS, a panel discussion, and a mixer. There will be discussions on online marketing, sales metrics, pricing strategies, inside sales, and technology tools for sales, support, and project management. The event will also cover best practices for company structure, funding, and expanding business operations.
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Blume SaaS event in 2012
- 1. SMB/ENTERPRISE – SAAS ON THE CLOUD blu l i t e
- 2. SCHEDULE • 3.45– 6pm: SaaS topic discussion • 6.00– 6.30pm: Tea Break • 6.30 – 8pm: Blume SaaS portfolio mixer with VCs • 8 – 9pm: Drinks /Food
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- 5. QUALITATIVE • Whatchannels of online marketing works for you - SEM vs SEO vs Content Marketing vs Social Media. • How do you prioritize and what kind of team structure do you need for running these activities? • What are the critical pain points in the sales funnel: • Visibility (# of website hits) • # of hits to customer Trials • Customer Trials to Paid Customers
- 6. QUANTITATIVE • MonthlyRecurring Revenue (include servicing) with relation to CAC • CAC with relation to LTV. • Life of Customer (defined by churn) • Acquisition Rate vs Churn Rate • Cost of Servicing the Customer vs Churn Rate
- 7. SALESFORCE SUBSCRIBER BASE 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 1800 1600 1400 1200 1000 800 600 400 200 0 2001 2002 2003 2004 2005 2006 2007 2008 Customers '000 Paying Subscribers Subscribers Growth of subsribers
- 8. KEY METRICS #of website hits per day <100 <500 <1000 >1000 website hits to trials <5% <10% >10% trials to paid customers <10% <20% <30% >30% MRR <$10 <$20 <$30 >$30 CAC <$50 <100 <150 >150 Churn rates <1% <5% <10% >10% Life time (years) 1 2 3 4 Customer Support <$10 <$20 <$30 >$30
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- 11. PRICING THOUGHTS •Decide on one metric and don’t confuse the customer – pricing evolves from there. • What metrics and features should limit or differentiate the pricing plans • Freemium/Trial to Paid: B2B/B2C, product/services, time/metric, what plan. • Paid/Pay as you go – defined by barrier to entry
- 12. SOME EXAPMPLES 0 -0.1 -0.2 -0.3 -0.4 -0.5 500 400 300 200 100 - % reduction Price/test Price per test % reduction in price/test 100% 80% 60% 40% 20% 0% - 6 5 4 3 2 1 Free Photos/Docs High Res Photos Videos % reduction Price /GB Price per GB % reduction in price/GB
- 13. PRICING THOUGHTS •Least – Most expensive or the other way round • Monthly/Annual should correspond to industry dynamics • Number of Plans • Highlight the most used plan • Naming conventions:
- 14. PANELIST PRICING 80% 60% 40% 20% 0% 2.5 2.0 1.5 1.0 0.5 0.0 Basic Silver Gold % reduction Price /missed call Price per missed call % reduction in price/missed call 0% -20% -40% -60% -80% 400.0 300.0 200.0 100.0 0.0 Basic Silver Gold % reduction Price /section price/section % reduction in price/sectionpagesl 0% -5% -10% -15% -20% 1500 1000 500 0 Robust Advanced Enterprise Ready % reduction Price /features Price for features % reduction in price/features call 0% -5% -10% -15% -20% -25% -30% 12.0 10.0 8.0 6.0 4.0 2.0 - Robust Advanced Enterprise Ready % reduction Price /transaction Price per transaction % reduction in price/features call
- 15. PRICING THOUGHTS •Reduction as the plan scales need to make sense till it plateaus + Should reduction be uniform for all plans? • Add on/Upgrades – should be promoted not shown on pricing
- 16. PANELIST PRICING 180% 160% 140% 120% 100% 80% 60% 40% 20% 0% Price /section reduction in price/CPU - 12m reduction in price/CPU - 6m reduction in price/CPU - 3m reduction in price/CPU - 1m 0% -20% -40% -60% -80% -100% 100 80 60 40 20 0 Robust Advanced Enterprise Ready % reduction Price /survey Price per survey % reduction in price/survey call
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- 18. Q&A • Whatis Inside sales? • How is it different from pure customer support? • Breakup of self serve & inside sales • CLV vs CAC • Product is sold or bought – features/apps vs complex product (CRM) • Innovative compensation plans
- 19. INSIDER SALES.. •Innovative channel partners + commission • Sales Cycle & Payment terms • Upsell strategies – Customer support /sales • Leads/ representative • Touch points • What have been your learnings? • Where can we hire the right inside sales people
- 20. TECHNOLOGY • Sales(Zoho/Salesforce/SugarCRM/Pipedrive) • Bug Tracking (CodebaseHG/Redmine/unfuddle/recurbe/Bitbuck et/Jango/DataRPM) • Support: Desk.com, Supportbee, myhive, freshdesk, • Project Mangament: Asana, Treilo
- 21. OTHER • CompanyStructure • Content Marketing • Web marketing • Online Sales • Customer Support • Incorporation • Invoicing • US/Singapore/India – patent/subsidiary • Optimum Funding • Angels/VCs • Runway
- 22. BLUME BANGALORE &EXPANDING
Editor's Notes
- #13 #Codility – continuous reduction in price/test as plans expand (6% - 44%) # Dropbox – no reduction in price/GB | upgrade by 500MB for every referal & Annual pay vs monthl save 17%
- #15 Avg MRR:1k,2k, 4k, 5.5k @fd - -16%, -14% @ZD: -67%, -75% @chargbee– 8 – 25% | assumed 2k & 3K transaction $69/$150 @mobstac: -75%
- #17 @e2e: different pricing for 3,6,9,12 months over different plans, -9%, -42% @ webengage: -67% to -87%
- #19 #1 – cost allocation | revenue generation | sales cycle | LTV | CAC #2: comparison vs Self serve #3 – how would you define which channel to use #4 – compensation + ESOPS + commision #5 – same as above #6 – same as above #7 – whose job is it? #8 – optimum leads to sales person #9 -
- #22 Company Structure & Incorporation: @Freshdesk, @ZipDial, @Mobstac, @Unmeric, @webengage Technology used: ,