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SaaS companies, are you segmenting
your customer acquisition channels
correctly?

Thursday, January 16th, 2014
Who are we?

●

Elizabeth Yin
○ Co-founder and CEO of LaunchBit, a
customer acquisition platform for SaaS
companies
○ ex Google marketer
○ BSEE Stanford
○ MBA MIT Sloan

SaaS customer acquisition
Who are we?

●

Lars Lofgren
○ Growth Manager at KISSmetrics,
customer analytics for SaaS companies
○ University of Colorado
Boulder
Today’s talk is on ...

●
●
●
●

Why SaaS customer acquisition is HARD
How to test marketing channels
How to measure performance
Q&A
SaaS customer acquisition is HARD

Thursday, January 16th, 2014
SaaS customer acquisition is HARD

● SaaS products aren’t
viral
● Cohort analysis is
complicated
● Lengthy sales
process
Image credit: http://www.flickr.
com/photos/sybrenstuvel/2468506922/sizes/m/
How to test new customer acquisition
channels?

Thursday, January 16th, 2014
You know all these channels already...
But how do they differ?

● Pricing
○ Minimum budgets
○ CPM, CPC, CPA
● Format (style)
● Delivery
...but most importantly, PURCHASE INTENT

Image credit: http://attackofthecute.com/on/?i=11444
High intent vs. Medium intent vs. Low intent
A typical high intent funnel

High intent
Typical medium & low intent funnels

Medium &
Low intent
How much test budget do you need?
Let’s test for performance
● BigDataSoft, Inc.
○ LTV: $4,500 per customer
○ SaaS rule of ⅓
■ Can spend up to $1,500 per new customer
But sales take a long time...
● What is our cost per lead?
How to determine lead quality
● Lead scoring tools
○ Work email address
○ Geolocation
○ Engagement with your site
○ Budget
○ Click through rate (CTR)
Setting up a test
● LaunchBit: SaaS advertising platform
○ Email ad network
○ Niche blog ad networks
○ Audience targeting
How to measure your channel
performance
Thursday, January 16th, 2014
So what’s a cohort?
Main benefit = keep users separated
The 4 Cohorts I Use for SaaS
1. Visit to Sign Up
2. Sign Up to Billed
3. Sign Up by Campaign
4. Cancellation by Subscription Plan
Questions?

@launchbit
Elizabeth Yin
elizabeth [at] launchbit [dot] com

@kissmetrics
Lars Lofgren
llofgren [at] kissmetrics [dot] com
Thanks for your time!

Thursday, January 16th, 2014

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SaaS companies, are you segmenting your customer acquisition channels correctly?