SaaS Tattler Issue 46

February 21, 2015 Paul Philp

SaaS Conversion

Attracting people’s attention to your SaaS serviceis is hard work.  If they don’t stay, sign up and convert, the traffic is just an expense item.  How can SaaS businesses improve their conversion performace?

Is Customer Success Enough?

Boris Wertz, at VersionOne ventures, explores customer success and conversion.  He thinks that custumer success is always reactive, and they come in too late for the key phase of SaaS conversions.  One of Boris’s portfolio company studied their conversion rates.  It turns out that the first page shown to the user has a huge impact on conversion performance.

Another take-away from those A/B tests was that there is a huge difference in conversions depending on the initial page shown during the onboarding process: people who were shown a page that was most relevant to solving their problems viewed more pages early on in their account life, completed more goals, and ultimately converted to a paid account at a higher rate.

The big question for you is how can you hook a customer in the first 10 minutes? If you want to increase goal completion, customer success emails and sales outreach might be too late and reactive. Users need to get hooked early, or they’re gone.

How do you make your customers fall in love with your service quickly?

SaaS Conversions Hacks

Successful conversion means getting a lot of small issues just right.  Dr Anil Kaul of AbsolutData has discovered 10 hacks to improve conversion performance.  What’s yor favorite hack?

Behavior Triggers
A good rule of thumb is that marketing should be guided by the specific set of behaviors that customers are intended to progress through so that the product’s value is evident. For instance, on a cloud storage site, there should be ad copy that alerts free users to the benefits of a paid subscription, such as more storage, file revision history or other benefits. Below the copy would be a link that brings the user to a signup page for the paid version.
 
Conversion-Specific Engagement Metrics
An analytics package can offer mountains of metrics, though not all of them will be beneficial to a company trying to convert free users to paid status. It is important to allocate higher weight to activities that heavily influence conversion, such as the time that a user spends on the site or the number of visits. Contain specific features that drive conversion do not look at all metrics with the same lens, but instead focus on what actually matters to the process of converting free users.

Rick Perreault of Unbounce: Master of Conversion

Unbounce has built a powerhouse SaaS company by helping marketing orgnaization build and manage landing pages that convert.  Here is a great interview with Rick by Alex at GrooveHQ.

The team had a tough decision to make: could they raise their prices and still get new customers? After internal debate, they decided to grandfather in existing customers at their current prices, and raise prices for new customers.

Right away, “the business started to work much, much better.”

We finally started attracting marketers that actually had a budget. Our support costs went down because our new customers didn’t need as much help, and the feedback we got was so much better.

When our pricing actually began to line up with the customer profile we wanted, we’d get feedback that would help us build a better product that people would actually pay for, since it was coming from the people actually paying for Unbounce. With the old $10 plan, we’d get people screaming for features that wouldn’t even up even paying for the product.

Unbounce built a loop that any business would be envious of: their higher prices attracted high-quality customers, which in turn gave them high-quality feedback, which in turn led to a higher-quality product.

Super SaaS Fundings:

LiveFyre – $32 M Series ‘D’ on February 19, 2015.

Synack – $27 Million Series ‘B’ on February 18, 2015.

BlueTalon – $5 Million Series ‘B’ on February 19, 2015.

Instructure – $60Million Series ‘D’ on February 12, 2015.

Newest SaaS Services from Product Hunt

Hotjar Insights – See how people are really using your product.

ContentAnalytics – See what content your users are actually reading.

Magic by Import.io – The fastest way to turn a web page into a table of numbers.

Charlie – Make a killer impression on whoever you’re meeting.

Infographic of the Week:

SaaS

Other Great Weekend Reads:

Effective content marketing requires a powerful strategy.  Tomaz Tunguz identifies the three dimensions of content marketing. 

Very little hurts a SaaS business more than losing customers you worked hard to win.   8 Advanced Tips for Never Losing a SaaS Customer Again.

Users are picking the software they love, rather than the software that was forced on them. Why designing for enterprise vs. consumer products isn’t as different as you think.

Implementing Customer Success this year? The Guide to Developing a Business Case for Customer Success will help you achieve your customer success mandate.

Want something added to the SaaS 2.0 Tattler – let us know! And let us know your take on the SaaS 2.0 Tattler in general – we’d love your feedback.

Curated by the team at Amity using the outstanding tools provided by Product Hunt, BetaList and CrunchBase. We encourage sharing and subscribing!


#SaaS Tattler Issue 46 - SaaS Conversion w/ articles by @bwertz, @anil_kaul, @alexmturnbull and more!
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