How to Build a Funnel that Will Grow Your Subscription Business the Fastest
• 3. We’ll cover...1 What is activation?2 4 levers for industry domination3 Common pitfalls of testing • 4. WHAT ISActivation? • 5. Your SaaS funnel • 6. Are people using your product? Not only do people need to create an account, they need to start using your product. • 7. No value = no sale • 8. How to define activation Activation = the critical step people need to take in order to get value from your product • 9. Facebook Activation • 10. Evernote Activation • 11. Instagram Activation • 12. Basecamp Activation • 13. Make sure to track activation It’s the most important part of your funnel and everyone forgets it. • 14. FUNNELLevers • 15. What’s a lever? A change to the funnel that helps you maximize users or revenue. • 16. Lever #1 Free Trials • 17. Trial Funnel Visited Site Trial Sign Up Activated Upgraded • 18. Basecamp Free trial • 19. On-ramp program is critical You have a limited number of days to make the sale. Don’t waste them. • 20. What’s your on-ramp program? The new user experience (NUX) should be completely different than your regular program. • 21. Shopify NUX • 22. 14, 30, or 45 day trial? • 23. Replacing the free trial Try replacing your free trial with a 30- day money back guarantee. • 24. Lever #2 Freemium • 25. Freemium Funnel Visited Site Free Sign Up Activated Upgraded • 26. Looking for user growth? Freemium is where you want to be. • 27. What do you limit? There’s a balance between offering enough so people sign up but not offering too much so they never upgrade. • 28. Common Freemium Limits1 Dropbox = 2 GB of Storage2 Evernote = 60 MB of Uploads3 MailChimp = 2,000 Email Subscribers • 29. MailChimp Freemium • 30. Freemium users take forever to upgrade Very difficult to track changing behavior over time with a long-term funnel. • 31. Cohort reports help a lot with freemium • 32. Lever #3 UP-FRONTCredit Cards? • 33. When do you collect credit card info? At account creation or at upgrade? • 34. Credit cards up front Fewer people will create an account but a LOT more will upgrade (especially if the upgrade is opt-out). • 35. Credit cards at upgrade Much easier to get people to create an account, much harder to get them to upgrade. • 36. AWeber $1 Trial • 37. Maximizing users or revenue? • 38. Lever #4 MONTHLY OR ANNUAL Billing • 39. Users or revenue? • 40. CrazyEgg used to be monthly • 41. Your Funnel Levers • 42. Test different levers for most growth • 43. COMMONPitfalls • 44. WHAT TO FOCUS ON First? • 45. Look for bottlenecks in your funnel • 46. Very few people go from Activation to Upgrade • 47. Use levers to fix bottlenecks • 48. ARE YOU ONLY TESTING THE Funnel? • 49. Variation B performs the best in this funnel • 50. Variation A gives the most revenue • 51. SHOULD WE TESTRandomly? • 52. Why did you get your results? • 53. Do you have qualitative data? • 54. Where do we get qualitative data? Talk to your customers.
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How to Build a Funnel that Will Grow Your Subscription Business the Fastest
- 1. How to Build a Funnel that Will Grow Your Subscription Business the Fastest Lars Lofgren Marketing Analyst - June 2012 info@kissmetrics.com - Confidential - Do not distribute
- 3. We’ll cover... 1 What is activation? 2 4 levers for industry domination 3 Common pitfalls of testing
- 6. Are people using your product? Not only do people need to create an account, they need to start using your product.
- 7. No value = no sale
- 8. How to define activation Activation = the critical step people need to take in order to get value from your product
- 13. Make sure to track activation It’s the most important part of your funnel and everyone forgets it.
- 14. FUNNEL Levers
- 15. What’s a lever? A change to the funnel that helps you maximize users or revenue.
- 16. Lever #1 Free Trials
- 17. Trial Funnel Visited Site Trial Sign Up Activated Upgraded
- 19. On-ramp program is critical You have a limited number of days to make the sale. Don’t waste them.
- 20. What’s your on-ramp program? The new user experience (NUX) should be completely different than your regular program.
- 21. Shopify NUX
- 22. 14, 30, or 45 day trial?
- 23. Replacing the free trial Try replacing your free trial with a 30- day money back guarantee.
- 24. Lever #2 Freemium
- 25. Freemium Funnel Visited Site Free Sign Up Activated Upgraded
- 26. Looking for user growth? Freemium is where you want to be.
- 27. What do you limit? There’s a balance between offering enough so people sign up but not offering too much so they never upgrade.
- 28. Common Freemium Limits 1 Dropbox = 2 GB of Storage 2 Evernote = 60 MB of Uploads 3 MailChimp = 2,000 Email Subscribers
- 30. Freemium users take forever to upgrade Very difficult to track changing behavior over time with a long-term funnel.
- 31. Cohort reports help a lot with freemium
- 32. Lever #3 UP-FRONT Credit Cards?
- 33. When do you collect credit card info? At account creation or at upgrade?
- 34. Credit cards up front Fewer people will create an account but a LOT more will upgrade (especially if the upgrade is opt-out).
- 35. Credit cards at upgrade Much easier to get people to create an account, much harder to get them to upgrade.
- 36. AWeber $1 Trial
- 37. Maximizing users or revenue? If users, try no credit card. If revenue, try up-front credit cards.
- 38. Lever #4 MONTHLY OR ANNUAL Billing
- 39. Users or revenue? Monthly gets more users, annual gets more revenue.
- 40. CrazyEgg used to be monthly
- 41. Your Funnel Levers 1 Free Trials 2 Freemium 3 Credit Cards Up Front 4 Monthly or Annual Billing
- 42. Test different levers for most growth
- 43. COMMON Pitfalls
- 44. WHAT TO FOCUS ON First?
- 45. Look for bottlenecks in your funnel What step is a serious roadblock for people?
- 46. Very few people go from Activation to Upgrade
- 47. Use levers to fix bottlenecks
- 48. ARE YOU ONLY TESTING THE Funnel?
- 49. Variation B performs the best in this funnel
- 50. Variation A gives the most revenue
- 52. Why did you get your results? If you just start testing without first understanding user behavior, you won’t be learning.
- 53. Do you have qualitative data? Once we understand our users, then we can work the levers for the best fit.
- 54. Where do we get qualitative data? Talk to your customers.
- 55. Other options?
- 56. Q&A Time! Lars Lofgren llofgren@kissmetrics.com @larslofgren
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- Let’s take an Apple product for example.\nIt’s obvious to use Apple as a case study for user experience. Their whole business model is built on UX and delighting their customers.\n
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