The document summarizes a webinar presented by The Local Search Association on improving customer engagement and reducing churn for SMB SaaS products. Key points include: 1) While SMB use of cloud-based services is growing, over half still don't use any SaaS and 62% underutilize the software they purchase. 2) Better training, simpler products, and setting proper expectations can improve engagement and utilization. 3) Collecting feedback from partners and customers and closely observing how SMBs complete tasks helps build better products that minimize churn. 4) Proactive communication and support also aid engagement and reduce chances of customers switching to competitors.

1. The Local Search Association
August 27, 2019
Breaking the Engagement Barrier:
Simple Steps for Improving CAC & LTV
www.monosolutions.com

2. The Local Search Association
Speakers
Charles Laughlin
Senior Analyst
LSA
David Mihm
VP Product Strategy
ThriveHive
Jillian Als
Head of Marketing + Communications
Mono Solutions

3. The Local Search Association
Agenda
o SaaS Has Transformed the SMB Market
o The Engagement Challenge and Why It Matters
o Unlocking Higher Engagement
o Discussion

4. The Local Search Association
Agenda
o SaaS Has Transformed the SMB Market
o The Engagement Challenge and Why It Matters
o Unlocking Higher Engagement
o Discussion

5. The Local Search Association
“Can you imagine trying to run a business back in 1978? You can’t even
compare it to what you can do now. And it is all because of technology”
Gene Marks, Forbes columnist

6. The Local Search Association
Sources: LSA Modern Commerce MonitorTM Survey, 2017-2019; 4,029 SMBs; Thrive Analytics, Local Pulse Report™
2017-2019; 6,685 SMBs. *Estimates based on SMBs that use cloud-based services at least once a month to support a
business function.
35%
42%
55%
65%
75%
2017 2018 2019 2020E 2021E
+180% increase
since 2016
Using cloud tools are
normal for SMBs

7. The Local Search Association
25%
22%
20%
14%
10%
33%
31%
25%
36%
19%
Payroll and HR Marketing and advertising
solutions
Customer relationship
management
Finance and operations
solutions
Supply-chain services
Wave I Wave IV
SMBs are Adopting Cloud-Based Services in All Areas:
Source: LSA Modern Commerce MonitorTM Survey; Wave I was conducted in 2017 on 1,002 SMBs;
Wave IV was conducted in 2019 on 1,015 SMBs.
+32% +43% +25% +157% +90%

8. The Local Search Association
32%
37%
29% 31% 31%
24%
26%
27%
18%
29% 31% 26%
32%
27%
Payroll/HR Marketing and
advertising
Supply-chain POS Accounting and
invoicing
Comms and tech
solutions
CRM
Slightly better Source: LSA Modern Commerce MonitorTM; Wave IV: N= 322 SMBs.
SMBs are happy with
the results …
… for the most part.

9. The Local Search Association
45%
46%
48%
53%
Our customer
satisfaction has
improved
The business has saved
money
It has provided us with
more capabilities
We spend more time
with customers
Source: LSA Modern Commerce MonitorTM Survey; Wave IV: N= 795 SMBs.
What are the top three ways
in which switching to cloud-
based services have helped
your business?

10. The Local Search Association
Source: LSA Modern Commerce MonitorTM Survey; Wave IV: N= 795 SMBs.
71%Of cloud SMBs spend half or more of their
time on revenue generating activities
76%Of non-cloud SMBs spend less than half of
their time on revenue generating activities

11. The Local Search Association
Agenda
 SaaS Has Transformed the SMB Market
 The Engagement Challenge and Why It Matters
 Unlocking Higher Engagement
 Discussion

12. The Local Search Association
“The substantial majority of small businesses stay on the
sideline of SaaS adoption because they don’t have the time, or the
knowledge, or it is just too intimidating”
Perry Evans

13. The Local Search Association
What Causes Churn?
9%
12%
18%
35%
38%
56%
Too difficult to use
Dissatisfied with service/support
Loss to a competitor
Cost
Failure to set expectations
Not using the product
What are the key reasons
behind your customers’
decisions to cancel or not
renew your small business
software product?

14. The Local Search Association
Source: LSA Modern Commerce MonitorTM Survey; Wave IV: N= 795 SMBs.
62%of SMBs that use SaaS products say
they fail to fully utilize the software

15. The Local Search Association
Source: LSA Modern Commerce MonitorTM Survey; Wave IV: N= 795 SMBs.
23%
23%
31%
23%
Some features don’t apply to my
business
We need more training on how to use
all the features
We plan to use the features but just
haven’t done it yet
We need to implement additional
technology / processes
Why aren’t you fully
utilizing the software you
have purchased?

16. The Local Search Association
Source: LSA Modern Commerce MonitorTM Survey; Wave IV: N= 795 SMBs.
7%
41%
46%
We used it heavily at first, and have
maintained that level of activity
We did not use it at first, but our usage
has grown over time
We used it heavily at first, then our
usage tapered off over time
Describe your
engagement with SaaS
after purchase

17. The Local Search Association
55%
57%
76%
Better expectation setting about what the
product can and cannot do
A better initial training process
A simpler product. Too many features made it
difficult to use
Source: LSA Modern Commerce MonitorTM Survey; Wave IV: N= 795 SMBs.
What would have led
you to engage more
with the software?

18. The Local Search Association
74%Say the cycle is one month or less
29%Say the cycle is one week or less
LSA SMB/SaaS Engagement Survey 2019, n = 36
What is the Engagement Cycle?
The amount of time a product has to capture a user’s
attention/engagement before the churn risk goes up

19. The Local Search Association
“If you can’t find a path, ideally in the first 24 hours, of creating a habit with
a user, you have a big drop off”
Perry Evans

20. The Local Search Association
Agenda
 SaaS Has Transformed the SMB Market
 The Engagement Challenge and Why It Matters
 Unlocking Higher Engagement
 Discussion

21. The Local Search Association
“At the end of the day, ease of use will always trump functionality”
Neal Polachek

22. The Local Search Association
Churn Busters:
19%
25%
28%
28%
36%
39%
44%
44%
44%
50%
69%
Reduce price
Invest in automate support
Send automated reports
Offer free trials
Inplement interactive dashboard
Invest in support staff
Service calls at regular intervals
Improve messaging/expectation setting
Simplified the product
Create new product/service tiers
Invest in onboarding/training
LSA SMB/SaaS Engagement Survey 2019, n = 36
What actions have you
taken to improve SMB
engagement with, usage
of your products?

23. The Local Search Association
2.70
2.60
3.10
3.00
3.00
3.30
3.60
3.70
3.40
3.40
3.60
Reduce price
Invest in automate support
Send automated reports
Offer free trials
Inplement interactive dashboard
Invest in support staff
Service calls at regular intervals
Improve messaging/expectation setting
Simplified the product
Create new product/service tiers
Invest in onboarding/training
LSA SMB/SaaS Engagement Survey 2019, n = 36
Rate these tactics on a 1-5 scale
based on how effective they are in
improving engagement/
combatting churn
What Works?

24. The Local Search Association
“We took a year’s worth of feedback across all our 70+ partners around
the globe including their direct small business client feedback and
combined it with data analysis of platform usage.”
Svenn Andersen

25. The Local Search Association
“[The 30-second rule] gives you a holistic view into observing what is
actually happening in the customer’s workflow so that the feature that
you bring into the product adds a hundred times more value.”
Aksh Gupta

26. The Local Search Association
“The most important thing is to be acquiring more
strategically and smartly and making sure you are getting the
customers that are a good fit for your product,”
Perry Evans

27. The Local Search Association
Summary & Takeaways
 SMB SaaS use is growing and they are benefitting from it
 Still, half still don’t use any SaaS & 62% underutilize software
 More training, greater product simplicity improves engagement
 Better alignment between product and prospect minimizes churn (ThiveHive)
 Deeper observation of how SMBs complete task helps to build better software
(Occasion)
 Proactive and reactive user feedback aids product development

28. The Local Search Association
Agenda
 SaaS Has Transformed the SMB Market
 The Engagement Challenge and Why It Matters
 Unlocking Higher Engagement
 Discussion

29. The Local Search Association
Past Webinars
www.thelsa.org

30. The Local Search Association
Upcoming Events
www.thelsa.orgOctober 15-16, 2019- Austin, TX March , 16-18, 2020- San Antonio, TX
Early Bird open till August 31
Code: EARLY200
Super Early Bird open till Sept 30
Code: EARLY400

31. The Local Search Association
Thank you for joining us!
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