Date post: | 13-Aug-2015 |
Category: |
Business |
Upload: | lars-lofgren |
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1. World-class churn
2. Revenue expansion from old cohorts
3. Accelerating acquisition at the right time
3 Fundamental Growth Levers for SaaS
• 2% or less = doing great
• 2-3% = almost there, focus on churn-reducing tactics
• 3-5% = no P/M fit yet, focus solely on product/onboarding
• 5-10% = business on fire, needs massive change
• 10% and above = get into a new business
Monthly Churn Benchmarks
• Remove self-service cancellation
• Fix product onboarding
• Push annual plans
• Force longer contracts
• Prioritize support for large accounts
• Downsell campaigns
• Reaching out to inactive accounts
• Qualify leads more
• Onboarding programs with 30/60/90 goals
Popular churn reduction ideas
Bad Marginal Major Wins
Remove self-service cancellation Push annual plans Fix product onboarding
Force longer contracts Prioritize support Improve product
value
Contact inactive accounts Downsell campaigns
Qualifying leads
30/60/90 onboarding programs
• Very disappointed
• Somewhat disappointed
• Not disappointed (it isn’t really that useful)
The P/M fit question from Sean Ellis:
How would you feel if you could no long user [product]?
GoToWebinar uses two pricing metrics
• Attendees = makes sense, easy upgrades
• Organizers = limits are annoying, resist upgrading
Let’s recap:
• We’ve focused heavily on P/M fit to get super low churn.
• We’ve found the pricing metric that easily convinces customers to pay more.
• Low churn + expansion revenue means we’re stable or growing without any acquisition.
• Now our lead gen is 100% upside.
Lots of lead gen paths:
• Inbound and content funnel
• Cold calling and outbound
• Industry events
• Partnerships
• Paid marketing
• PR
• Affiliates
• Viral loops
The alligator sales funnel
Qualified leads growing at 10% MOM, new logos constant at 100/month
0
1,250
2,500
3,750
5,000
Jan Mar May Jul Sept Nov Jan Mar May July Sept Nov
Qualified leads New logos
1. Make sure you have P/M fit and low churn
2. Get cohort expansion in place with a great pricing metric
3. Build your lead gen machine at the right time
Your growth levers, step-by-step
• SaaStr.com by Jason Lemkin
• forentrepreneurs.com by David Skok
• christophjanz.blogspot.com - The Angel VC
• Predictable Revenue by Aaron Ross
• tomtunguz.com by Tom Tunguz
• blog.asmartbear.com by Jason Cohen
Required reading on SaaS metrics.