[CXL Live 16] SaaS Optimization - Effective Metrics, Process and Hacks by Stephen Pavlovich

SaaS Optimization
Effective Process, Metrics and Hacks
Stephen Pavlovich
Conversion.com
31 March 2016

Testing
Strategy
Insight
Data
KPIs
Goals

Inactive trial
Active trial
Lapsed trial + no sale
Current customers
Lapsed customers

“If you could make one change to the
product, what would it be?”

Free trials do not pay the bills.
@conversion_com

Don’t convert to trial before
the user is sold on the product.
@conversion_com

“But how can you optimize for sales
with a 14 or 30-day trial?”

Stage Day Phase Focus Goals KPIs
1 1 Acquire Landing page
Sign-up page
Trial UVs
Trials
SaaS metrics

Sign-up page
Trial UVs
Trials
2 1–2 Activate Product
Email
Active user Product usage
SaaS metrics

Sign-up page
Trial UVs
Trials
Email
3 14–30 Monetize Plans page
Checkout
Customer Sales
MRR
SaaS metrics

Sign-up page
Trial UVs
Trials
Email
Checkout
Customer Sales
MRR
4 <90 Retain Product
Email
LTV Churn
SaaS metrics

Sign-up page
Trial UVs
Trials
Email
Checkout
Customer Sales
MRR
Email
LTV Churn
+ – Upsell Product
Email
Increase
revenue
Negative churn
ARPA
SaaS metrics

Sign-up page
Trial UVs
Trials
Email
Checkout
Customer Sales
MRR
Email
LTV Churn
+ – Upsell Product
Email
Increase
revenue
Negative churn
ARPA
+ – Refer Product
Email
Refer-a-friend
Virality Viral coefficient
SaaS metrics

Stage Phase
1 Acquire
2 Activate
3 Monetize
4 Retain
+ Upsell
+ Refer
#1 Visit > Trial

Stage Phase
1 Acquire
2 Activate
3 Monetize
4 Retain
+ Upsell
+ Refer
#1 Visit > Trial
⊕ Quick to test
⊖ May not correlate to sales

Stage Phase
1 Acquire
2 Activate
3 Monetize
4 Retain
+ Upsell
+ Refer
#2 Visit > Sale

Stage Phase
1 Acquire
2 Activate
3 Monetize
4 Retain
+ Upsell
+ Refer
#2 Visit > Sale
⊕ Better indication of revenue
⊖ Increased test duration

Stage Phase
1 Acquire
2 Activate
3 Monetize
4 Retain
+ Upsell
+ Refer
#3 Visit > Qualified trial

Stage Phase
1 Acquire
2 Activate
3 Monetize
4 Retain
+ Upsell
+ Refer
#3 Visit > Qualified trial
⊕ Quick to test
⊕ Closer correlation to sales
⊖ Need to develop reliable lead
scoring model

Stage Phase
1 Acquire
2 Activate
3 Monetize
4 Retain
+ Upsell
+ Refer
#4 Visit > Active user

Stage Phase
1 Acquire
2 Activate
3 Monetize
4 Retain
+ Upsell
+ Refer
#4 Visit > Active user
⊕ Quick to test
⊕ High correlation to sales
⊖ Action needs to happen within
1–2 days

In SaaS conversion optimization,
test through to active trials.
@conversion_com

The “a-ha” moment is
the tipping point for retention.
@conversion_com

Fix churn before acquisition
– it will flatline growth.
@conversion_com

“Knowing this
allowed us to do
a lot to get new
users to their “a-ha”
moment quickly.”
Chamath Palihapitiya

Deliver the “a-ha” moment ASAP
– even before the user signs up.
@conversion_com

Use simple Q&A to sell to and
segment your audience.
@conversion_com

http://conversionxl.com/10-principles-of-effective-pricing-pages/

“How do we increase profit?”

1. Increase the price of the $6.99 bottle.
2. Decrease the price of the $9.99 bottle.
3. Change the prices to $6.97 and $9.97.
4. Offer 10% off if you buy three.
5. Something else…

$6.99 $9.99
Quantity sold:
$19.99

Free
$0/month
Basic
$25/month
Pro
$100/month
Enterprise
$300/month
✔ Feature 1 ✔ Feature 1
✔ Feature 2
✔ Feature 3
✔ Feature 1
✔ Feature 2
✔ Feature 3
✔ Feature 4
✔ Feature 5
✔ Feature 1
✔ Feature 2
✔ Feature 3
✔ Feature 4
✔ Feature 5
✔ Feature 6
✔ Feature 7
✔ Feature 8
Get started Get started Get started Get started

Test “decoy” price plans
+ volume-based pricing.
@conversion_com

Stephen Pavlovich
Founder & CEO
E: stephen.pavlovich@conversion.com
M: +44 7970 428029

[CXL Live 16] SaaS Optimization - Effective Metrics, Process and Hacks by Stephen Pavlovich

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[CXL Live 16] SaaS Optimization - Effective Metrics, Process and Hacks by Stephen Pavlovich