a dashboard for freemium providers_ what to measure—and how presentation
TRANSCRIPT
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8/9/2019 A Dashboard for Freemium Providers_ What to Measure—and How Presentation
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Measuring Your FreemiumBusiness
Ranjith Kumaran
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8/9/2019 A Dashboard for Freemium Providers_ What to Measure—and How Presentation
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What youll learn today:
Your conversion rate is not too low.
Your cancellation rate is not too high.But your cost-to-serve *is* too low.
and how to tie it all together.
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8/9/2019 A Dashboard for Freemium Providers_ What to Measure—and How Presentation
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Myth#1: Freemium businesses
only work if conversion rates arebetween 5%-10%
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Some real conversion metrics
~900K subscribers / 1000K active
registered (2006) = $1B market cap
~200K subscribers / ~20000Kregistered (2009) = $0.5B market cap
~180K subscribers / ~5000K activeregistered (2010)(does not include corporate or pay-as-you-go customers, see math on slide after next)
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Registered user count is a vanity
metric
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How we measure conversion at
YouSendIt
individual subscribers + pay-as-you-go users +corporate deployments
activity (login or file send)
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Conversion dashboard #1
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Conversion dashboard #2
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Conversion dashboard #3
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Tip: how to get 100% conversion!
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Myth#2: A viable subscription
service can only churn at < 2%
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Real monthly cancellation rates
Cell phone 1%-2%
Netflix ~4%
Virus scanning ~10%
Dating sites ~15%
SaaS solutions 1%-20%
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Cancellation dashboard
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Up-sells at renewal time can lead
to negative ch
urn!
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Tips: reducing churn
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Myth#3:Cost-to-serve =
hosting costs
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Cost-to-serve dashboard
hosting costs
+ operations headcount
+ customer service headcount+ depreciation+ credit card / payment fees+
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Tip: cost-to-serve leverage can
come from scale
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The only number that matters?
Lifetime value (> acquisition + service)
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Lifetime value dashboard
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@ranjithkumaran