3 Techniques to Increase Conversions for Your SaaS Business
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The document outlines strategies for increasing conversions in SaaS businesses, focusing on various sales and pricing models, including customer self-service, transactional sales, and freemium options. It emphasizes the importance of funnel optimization through testing and analysis, providing a five-step process for improving macro conversions. Key techniques include segmenting customers, conducting A/B tests, and continuously measuring results to enhance overall performance.
3 Techniques to Increase Conversions for Your SaaS Business
- 1. Techniques to Increase Conversions For Your SaaS Business Hiten Shah KISSmetrics Webinar • February 22nd, 2011
- 2. Twitter Hash Tag #measure
- 3. SaaS: Software as a Service
- 4. SaaS Sales Models • Customer Self Service (sign up and pay online) • Examples: 37signals, Zoho, Dropbox • Transactional Sales (inside sales) • Examples: HubSpot, Salesforce, Zendesk • Enterprise Sales ("elephant" hunting) • Examples: BazaarVoice, BrightEdge, Workday • Hybrid (a little, or lot of everything) • Examples: YouSendIt, LogMeIn, Google Apps
- 5. SaaS Pricing Models • Paid Sign Up (no free trial or free plan) • Examples: CrazyEgg, Mozy • Free Trials (timed trials) • Examples: 37signals, Backupify • Freemium (free forever → upgrades) • Examples: YouSendIt, LogMeIn, Evernote
- 6. CrazyEgg Pricing Before Freemium (free forever → upgrades) Visited Site Free Sign Up Upgraded
- 7. CrazyEgg Pricing After Paid Sign Up (no free trial or free plan) Visited Site Sign Up Pay
- 8. CrazyEgg Results • Sign ups decrease by 10x • Doubled revenue in the first month • 2 years later, 25% of the revenue is from free customers • There is a free plan in CrazyEgg’s future =)
- 9. Funnel Testing & Optimization
- 10. Macro Conversions “ It’s important not to get distracted by intermediate metrics like the click-through rate of the button itself...we only care about the customer behaviors that lead to something useful” Eric Ries, The Lean Startup
- 11. Activation • Web analytics application • Install javascript code and start tracking data • Project management application • Create first project and invite a person • Customer relationship management application • Add their first contact and follow up with them • Customer support application • Receive and respond to a customer support request
- 12. SaaS Macro Conversion Funnels Paid Sign Up (no free trial or free plan) Visited Site Sign Up Pay $ Activated Free Trials (timed trials & product limit trials) Visited Site Trial Sign Up Activated Upgraded $ Freemium (free forever → upgrades) Visited Site Free Sign Up Activated Upgraded $
- 13. 5 Step Process for Funnel Optimization 1. Baseline your macro conversions 2. Identify optimization opportunities 3. Gather qualitative data 4. Create and implement A/B tests 5. Measure against your baseline, rinse & repeat
- 14. Baseline your macro conversions
- 15. Identify optimization opportunities • Which step has the highest drop off?
- 16. Gather qualitative data • Identify conversion barriers • Surveying • Survey.io, KISSinsights, Wufoo, SurveyMonkey, etc... • Usability Testing • In-person, UserTesting.com, FiveSecondTest, etc... • Example • Task completion survey http://kiss.ly/biUD9L • SaaS plans page survey http://kiss.ly/f9ZlAb
- 17. Create and implement A/B tests • Many ways to improve funnels • Modify your steps • Combine, remove or change the order of steps. • Add UI elements to guide users • Test your designs • Headlines, images, buttons, microcopy, etc... • Try radical variations
- 18. Measure against your baseline, rinse & repeat
- 20. Account type segmentation http://rowfeeder.com/plans
- 21. Company size segmentation http://box.net/pricing
- 24. Testing Your Call to Actions
- 25. Funnel A/B Testing Rules!
- 26. Survey, segment, analyze & then create tests Customer Development Survey http://survey.io
- 28. Don’t copy “best practices” blindly How to Increase Sign-ups by 200% http://kiss.ly/seeplansandpricing
- 29. Learn what works best for your customers A Beginner’s Guide To A/B Testing: Exceptional Web Copy http://blog.kissmetrics.com/ab-testing-web-copy/
- 30. 3 Techniques for Increasing SaaS Conversions Baseline then optimize your funnels Segment your customers Test your call to actions
- 31. You’ve got questions... How many of my visitors are converting into signed-up customers? How many of those signups are upgrading? How many of last month’s customers are still around this month? How long does it take, on average, for a visitor to become a customer? How much am I making each day in revenues? How much is the average customer paying me each month? We have the answers! Email us to learn more about our SaaS APIs saas@kissmetrics.com Hiten Shah hshah@kissmetrics.com • 650.241.4531