Using customer analytics to increase saas revenue
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Customer Analytics to Increase SaaS Revenues Guy Nirpaz, CEO & Founder TOTANGO [email protected] @guynirpaz
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Transcript of Using customer analytics to increase saas revenue
SaaS Model Characteristics
Characteristics of a SaaS Business
Find & Run Model– SaaS should be easily found (‘get found’)– No physical barriers to value realization
Smooth Customer Experience– Frictionless customer engagement processes– User Driven
Self– Service…– Evaluation…– Pace…
Customer Driven Model
The Financials…
CLTV > CACMarketing & SalesCustomer Success
Majority (87%) of SaaS executives regularly track “CAC related” metrics, with a large percentage (58%) adding or planning to add tracking of “CLTV related” metrics in the next year.
1Executives at SaaS companies regularly monitor the following metrics:
Website Unique Visitors
New Signups Conversion Rate (Trial to Paying)
Life Time Value Churn Rates
54% 56%59%
44%
56%
CAC Related CLTV Related
19%
58%Plan to track in the next 12 month:
CAC Related
CLTV Related
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Customer Engagement Cycle
Measure Cust. Engagement
Analyze Business Context
Proactively Engage
Grow Conversion Rates
SaaS Sales Models
No Touch No sales team. Customer self-service37Signals Yammer MailChimp
Low Touch Inside sales team + Inbound marketingZendesk Hubspot Box
High Touch Enterprise salesJive software Taleo Panaya
Hybrid Models Mix & match
Low Touch Sales - Reality
High volume of leadsFrom Inbound marketing activities
High rate of low quality leads75%+ is not uncommon
Short staffed teamSales-rep responsible for hundreds of new trials
Focus on opportunities that matterUse conversion data to drive contact priority
a
ActivelyEvaluating
(2,136)
3 Things to look at…
Signup(11,332)
Converted(282)
Conversion Rate
2.4%282 out of 11,332
Conversion Rate
13.2%282 out of 2,136
Overall
Actively Evaluating
Considerations…
Signups(11,332)
Converted(282)
ActivelyEvaluating
(2,136)
Calculate conversion after accounts had enough time to convert • Time-based: after trial period
passed• Freemium: (more complicated) A] understand mean conversion time B] conversion analysis by cohort
Who is “Actively Evaluating?”
• Demonstrating “buying intent” by trying out the SaaS offering
• Measuring can be tricky: A] Return visits B] Activated account C] Specific functionality used
Conversion Signals
Conversion Rate
2.4%282 out of 11,332
Entire Population2.4% of ALL trials in May converted (282 out of 11,332)
Evaluating
Conversion Rate
13.1%281 out of 2,136
Had more than 2 days of activity
A smaller segment of the population (2,136 trials) showed a much higher conversion rate (13.1%).
These are all the trials that were active on the service for at least 2 days.
Nearly all converting trials (281 out of 282) exhibited this behavior
Conversion Rate
29.7%92 out of 309
Hot
3 users or more in first 3 days of trial
An even smaller segment (309 trials) had a much higher conversion rate (nearly 30%)
These are all trials that had 3 users join the trial account during the first 3 days of trial
Who to contact?
Evaluating
Hot
Entire Population
TOP PRIORITY
HIGH PRIORITY
LOWER PRIORITY
Your best chance to make a sale!
Contact Rate
33%799 out of 2,136
Contact Rate
41%129 out of 309
Who has the team contacted?
Contact Rate
19%2,179 out of 11,332
Goal: 100%
Goal: 100%
Team’s capacity
Ideal contact target
Ensure Customer Success
Customer Success - CLTV
Shorten Time to Value
Increase Customer Loyalty
Reduce chances of churn
Segment Based on Maturity
Segment by Maturity
New Accounts – Minimize time to value– Ensure successful initial implementation– Monitor Growth and Expansion– Training
Mature Accounts – Ensure on going value– Exposure to new functionality– Sustained engagement– Look for growth opportunities
Examples
Constantly Increase Value
Higher Engagement = Higher Value
What product features are used the most? – Break down by account segment (free, basic, premium)– Break down by lifecycle/maturity (trial, onboarding,
established)
Proactive outreach to accounts with decline or increase in usage
Deep diagnostics into product area that are not resulting in engagement
– Broken UX? Lacking documentation? Low value? – Supplement measurements with customer interviews
(qualitative data)
Conf. Basic Settings
20.5%549 out of 2,675
50%
Invite Team Members
34.4%262 out of 760
21%
Conf. Advance Settings
8.5%216 out of 510
35%
Entire Population
15.5%621 out of 4,002
Trial Onboarding Diagnostics: Example
5%+ conversion when going through basic config, but only 50% of accounts do it.
Optimize UX flow
7%- conversion when going through advanced config.
Improve UX Hide functionality post-
trial
x2 conversion when inviting team!
Improve UX Tutorial / Marketing
Questions?
Guy Nirpaz
Email: [email protected]: @guynirpazSkype: guy.nirpaz
www.totango.comblog.totango.com
Contact Me
Thank You!
