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Improve your
retention with
this one change
David Cancel
SaaSFest 2015
About David Cancel
• 5x Founder / 2x CEO
• CEO/Co-Founder, Driftt
• Chief Product Officer, HubSpot,
IPO: HUBS
• CEO/Co-Founder, Performable
acquired by Hubspot
• Owner/Founder, Ghostery, acquired
by Evidon
• CTO/Co-Founder, Compete,
acquired by WPP
• Investor/Advisor/Director to Various
Companies and VC Funds
One change can
improve retention
Really?
Align Incentives
– Charlie Munger
‘The most important rule
in management “Get the
incentives right”‘
Simple, not easy
But…
Which
incentives?
Two categories of
incentives
1. External
Align your pricing,
product, and promotions
with your customers
2. Internal
Align your teams and
departments to promote
customer retention.
Lots of talks
about #1
We’re here to talk
about #2
Not what you’re
thinking
So…
How do we
align…
the incentives of
our departments?
Best way to
change behavior
is to leverage a
cognitive bias
only one bias in
this case
but ideally…
you should study
all…
25 cognitive
biases
as described by
Charlie Munger
“The Psychology of
Human Misjudgment”
http://cancel.im/25-coginitive-biases
Today we are
discussing Bias #1
Bias 1:
Reward and Punishment
Super-Response
Tendency
– Benjamin Franklin
“If you would persuade,
appeal to interest and not
to reason”
Incentives and
disincentives…
rule everything
around me
Few businesses
get this right
How do you align
your teams today?
You are what you
measure
but remember
There is a dark
side to metrics
🎲🎰🎲
So are your
metrics aligned…
with your
customers?
Most team
metrics aren’t
Sales?
Marketing?
Product?
Solution
Customer 🎯
Design every
teams metrics…
to incent
customer
retention
Examples
Establish
baselines
NPS
eNPS
1. Sales
Territories
Upgrades
2. Marketing
Leads +
Customer NPS
SDRs
3. Engineering +
Product
Customer
Service
Internal
Customers Too
No Product
Roadmaps
Product Adoption
Usage Frequency
Shipping to
Customers Daily
Monthly Science
Fairs
One change can
improve retention
Thank You.
Once a week I share
what I’m learning.
http://davidcancel.com/newsletter
SUBSCRIBE
SaaSFest 2015: Improve Your Retention With This One Change

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SaaSFest 2015: Improve Your Retention With This One Change

Notas del editor

  1. YES!
  2. (including loyalty rewards, etc)
  3. http://cancel.im/25-coginitive-biases
  4. “The power that incentives and disincentives have on the actions of others cannot be overstated. Munger says this should be obvious but so many people don’t understand the how important incentives are for shaping people’s motivation to complete a task. Incentives and disincentives are extremely important in changing behavior.” http://25cognitivebiases.com/bias-1-reward-and-punishment-super-response-tendency/
  5. Tell HubSpot Engineering team story.
  6. Gaming
  7. Thought they were doing a great job despite internal and external customer frustration
  8. put the customer at the center of your business. at the center of each of your team’s metric
  9. Source: http://www.driftt.com/
  10. Not just MQLs
  11. Not just MQLs Own SDRs ( not sales ) if you have an inside sales model so that leads are not burned
  12. Owns PMM, Growth, Engineering & Design They own usage,
  13. Owns PMM, Growth, Engineering & Design They own usage,
  14. Owns PMM, Growth, Engineering & Design They own usage,
  15. Owns PMM, Growth, Engineering & Design They own usage,
  16. Owns PMM, Growth, Engineering & Design They own usage,
  17. Whole company