Stephen will be talking on SaaS optimization strategy, including: - The data, insight and metrics you need to track to identify opportunity - Flow optimization: from landing page to trial, usage, purchase and retention - Problems and opportunities: e.g. how do you test a landing page when the sale happens 14 or 30 days later? How do you manage testing across multiple KPIs simultaneously? How do you understand and segment your key product offering?

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

3. Testing
Strategy
Insight
Data
KPIs
Goals

4. Testing
Strategy
Insight
Data
KPIs
Goals

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

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

11. “Video conferencing”

17. +19%

18. Free trials do not pay the bills.
@conversion_com

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

23. Testing
Strategy
Insight
Data
KPIs
Goals

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

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

26. Stage Day Phase Focus Goals KPIs
1 1 Acquire Landing page
Sign-up page
Trial UVs
Trials
2 1–2 Activate Product
Email
Active user Product usage
SaaS metrics

27. Stage Day Phase Focus Goals KPIs
1 1 Acquire Landing page
Sign-up page
Trial UVs
Trials
2 1–2 Activate Product
Email
Active user Product usage
3 14–30 Monetize Plans page
Checkout
Customer Sales
MRR
SaaS metrics

28. Stage Day Phase Focus Goals KPIs
1 1 Acquire Landing page
Sign-up page
Trial UVs
Trials
2 1–2 Activate Product
Email
Active user Product usage
3 14–30 Monetize Plans page
Checkout
Customer Sales
MRR
4 <90 Retain Product
Email
LTV Churn
SaaS metrics

29. Stage Day Phase Focus Goals KPIs
1 1 Acquire Landing page
Sign-up page
Trial UVs
Trials
2 1–2 Activate Product
Email
Active user Product usage
3 14–30 Monetize Plans page
Checkout
Customer Sales
MRR
4 <90 Retain Product
Email
LTV Churn
+ – Upsell Product
Email
Increase
revenue
Negative churn
ARPA
SaaS metrics

30. Stage Day Phase Focus Goals KPIs
1 1 Acquire Landing page
Sign-up page
Trial UVs
Trials
2 1–2 Activate Product
Email
Active user Product usage
3 14–30 Monetize Plans page
Checkout
Customer Sales
MRR
4 <90 Retain Product
Email
LTV Churn
+ – Upsell Product
Email
Increase
revenue
Negative churn
ARPA
+ – Refer Product
Email
Refer-a-friend
Virality Viral coefficient
SaaS metrics

31. Four options for KPIs

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

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

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

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

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

40. 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

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

42. 4: Visit to active user

43. 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

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

45. Testing
Strategy
Insight
Data
KPIs
Goals

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

48. Impact of churn on growth

49. Impact of churn on growth

50. Impact of churn on growth

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

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

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

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

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

72. $6.99 $9.99

73. $6.99 $9.99
Quantity sold:

74. “How do we increase profit?”

75. 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…

76. $6.99 $9.99
Quantity sold:

77. $6.99 $9.99
Quantity sold:
$19.99

78. $6.99 $9.99
Quantity sold:
$19.99

82. Revenue
+40%

83. Free
$0/month
Basic
$25/month
Pro
$100/month
Enterprise
$300/month
✔ Feature 1 ✔ Feature 1
✔ Feature 2
✔ Feature 3
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✔ Feature 5
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✔ Feature 8
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85. Sales
+100%

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

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

88. Testing
Strategy
Insight
Data
KPIs
Goals