Nailing a High-Converting Saas Trial
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Transcript of Nailing a High-Converting Saas Trial
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Nailing the SaaS Trial
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MEET THE SPEAKERS
JD Peterson CRO, Scripted
@jd_peterson
Guy Marion CMO & Growth, Autopilot
@guy_marion
Michael Sharkey CEO and Co-founder, Autopilot
@michaelsharkey
Nick Franklin CEO, ChartMogul
@nick_franklin
#SaaS
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4:30 PM
Welcome
4:40 PM
Nailing the SaaS Trial (Mike Sharkey, Guy Marion)
5:30 PM
Know Thy MRR Metrics (Nick Franklin)
AGENDA
5:50 PM
SaaS Q&A Fireside Chat Mike Sharkey, Nick Franklin and JD Peterson, moderated by Guy Marion
6:30 PM
Drinks & Networking
#SaaS
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Why nail your SaaS trial?
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1) BE REMARKABLE
“beautifully simple”“zero learning curve” “empowering”
#SaaS
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2) SUCCESSFUL CUSTOMERS = HIGH LIFETIME VALUE
Monetization
Engagement / Retention
Virality
Simon Knapp @simonknapp
I’ve signed up to trial over 500 apps
over last 5 yrs so I’m not easily
impressed. But @autopilotus just blew
me away! Best onboard ever!
#SaaS
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3) GROW YOUR SAAS VALUATION
#SaaS
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Nailing the Trial: Know Your Customer
MARKETING MANAGER DIRECTOR OF GROWTH
Needs stay better in touch with customer base,
grow sales leads, provide CEO reports
Why She Buys MailChimp not cutting it. Wants ease of
use, flexibility to test, and simple reports
Needs customer journey automation, lead nurturing,
CRM pipeline management
Why He Buys Visual UX, ROI, open & integrated
TARGET PERSONAS
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Average Daily Usage (Events)
UNDERSTAND USER BEHAVIOR
#SaaS
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Phase 1
Phase 2
Phase 3
BuyersAverage Daily Usage (Events)
UNDERSTAND USER BEHAVIOR
#SaaS
DEVELOP ENGAGEMENT OBJECTIVES
Average Daily Usage (Events) Determined
Slow starters
Dropoffs
Lost
1) Motivate the determined. 2) Enable slow starters. 3) Salvage the drop-offs and lost.
#SaaS
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DRIVE ENGAGEMENT THROUGH AUTOMATION
Activated trialists are typically
3X more likely to buy than
inactive users are.
1) A visitor signs up for a trial
2) Activate through nurturing
3) Convert into paying customer
3X
#SaaS
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6 steps to nailing your trial (and let’s build!)
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6-STEPS
1 Set conversion goals Identify key behaviors Define obstacles & nudges
Build your journey Create your content Measure success
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654
#SaaS
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SET CONVERSION GOALS
• Track signups, activations, and conversions
• <10% is standard, 10%-15% is good, 15%+ is best
• Factor in channel and cycle time
Sign Ups Activations Customers
100%
33%
15%
#SaaS
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2
IDENTIFY KEY BEHAVIORS
Log in 10%
Upload content 33%
Share 66%
• Logging in
• Specific actions
• Usage thresholds
• Non-app events
Common examples
#SaaS
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DEFINE OBSTACLES AND NUDGES
Welcome Usage Tips Sales Touches Usage ReviewExpiry
Warnings Feedback
Need 1-2-3 approach Be successful in app Desire for direct POC Get a bird’s eye view Determine priority Provide input
Goal Login Drive usage Schedule or engage Go deeper Buy Get feedback
Timing Immediately After 1-2 sessions Within 24 hrs Halfway through trial 1 week to expire Post-trial
Channel HTMLHTML
HeadsUpText Enriched HTML HTML Text with survey link
Tone Humor Trusted advisor Hands-off Jargon Helpful Thankful
Personalize your content
#SaaS
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BUILD YOUR JOURNEY
Option 1: Time-based, non-usage based Day 1 ➝ Day 2 ➝ Day 7 ➝ Day 14 ➝ Day 23 ➝ Day 30
Option 2: Time & usage-based
Signup ➝ event check after 2 days ➝ event check after 4 days ➝ etc.
Option 3: Usage-based (e.g. Freemium) Signup ➝ Trigger on activity #1 ➝ Trigger on threshold
Common trial types
#SaaS
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CREATE YOUR CONTENT
Welcome
5Goodreads Squarespace
1-2-3 direct
#SaaS
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5
CREATE YOUR CONTENT
Usage Tips
5 Paperless Post
#SaaS
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CREATE YOUR CONTENT
In-app messages (Headsup)
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• Invite to webinar
• Link to key content
• Get feedback
• Subscribe to updates
Common examples
CEO Invite
#SaaS
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CREATE YOUR CONTENT
Usage Review
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Zendesk
#SaaS
LUNCHBOX
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CREATE YOUR CONTENT
Expiry Warnings
5 Dropbox
#SaaS
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5
CREATE YOUR CONTENT
Feedback Survey
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Autopilot
#SaaS
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Let’s demo
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MEASURE SUCCESS & ITERATE
Autopilot Salesforce
Mixpanel Chartmogul
Journeys & Content Leads, Customers, $
Conversion Funnels MRR Insights
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SUMMARY
1 Set conversion goals Identify key behaviors Define obstacles & nudges
Build your journey Create your content Measure success
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654
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Know Thy MRR MetricsKnow thy MRR metrics
Our missionWe help subscription businesses measure,
understand and grow their recurring revenue.
Subscription IntelligenceTM platform
SaaS Metrics
Trial to paid conversion rates
Measuring trial to paid conversion rates with cohorts
How we measure ourselves and update our investors
Sales and revenue KPIs· Customers
· Monthly Recurring Revenue (MRR)
· Annualized Run Rate (ARR)
· Average Revenue Per Account (ARPA, ARPU, ARPC)
· MRR/Customer churn rate
· Customer Lifetime Value (LTV)
Monthly Recurring Revenue (MRR)
MRR Movements
Churn
MRR churn-rate
Customer Churn Rate
Gross MRR Churn Rate
Net MRR Churn Rate
Most SaaS startups should aim for negative MRR churn
Many of the best known public SaaS companies have negative churn, e.g. New Relic, Zendesk, but not a requirement to be a unicorn, e.g. HubSpot.
Image credits to Tomasz Tunguz
Negative churn
Churn classificationPro-active churn Passive churn Happy churn
Churn that isn’t really churn
What is a reasonable level of Churn?✓ Most SaaS companies selling to SMBs have quite high levels of monthly churn 3.2% customer churn.
✓ The more up-market you go the lower the churn rate (usually) ✓ Many public SaaS companies have negative net churn, as high as 20%
Cohort analysis
Cohort analysis is a great way to really understand how your subscriptions evolve over their lifespan.
Customer lifetime value (LTV)What is it?An estimate of the total subscription value of an average customer.
Calculation
Helps with decisions on CAC spending, growth predictions
ARPA
Customer churnLTV =
* Gross Margin %
Segment MRR and LTV by acquisition channel.
What you want to end up with…
Advantages of Ahoy
Track everything in our own database.
Referrer & UTMs of every visit + landing pages.
Connect the collected data with an account the moment the visitor signs up.
It’s free.
Pipe the relevant visitor data into all our systems
Marketing
CRM
Analytics
Seeing this caused us to turn off most paid advertising.
Where to learn more…
Jason M. Lemkin@jasonlk
saastr.com
Christoph Janz@chrija
theangelvc.net
David Skok@BostonVC
forentrepreneurs.com
Tomasz Tunguz@ttunguz
tomtunguz.com
+ ChartMogul.com
Thank you!
chartmogul.com
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Fireside chat
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autopilothq.com blog.autopilothq.com
@autopilotus
[email protected] [email protected]
chartmogul.com blog.chartmogul.com
@chartmogul
GET IN TOUCH
scripted.com scripted.com/blogs
@getscripted
#SaaS
