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

● Lars Lofgren○ Growth Manager at KISSmetrics,

customer analytics for SaaS companies○ University of Colorado

Boulder

Who are we?

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

Today’s talk is on ...

SaaS customer acquisition is HARD

Thursday, January 16th, 2014

● SaaS products aren’t viral

● Cohort analysis is complicated

● Lengthy sales process

Image credit: http://www.flickr.com/photos/sybrenstuvel/2468506922/sizes/m/

SaaS customer acquisition is HARD

How to test new customer acquisition channels?

Thursday, January 16th, 2014

You know all these channels already...

● Pricing○ Minimum budgets○ CPM, CPC, CPA

● Format (style)● Delivery

But how do they differ?

...but most importantly, PURCHASE INTENT

Image credit: http://attackofthecute.com/on/?i=11444

High intent vs. Medium intent vs. Low intent

High intent

A typical high intent funnel

Typical medium & low intent funnels

Medium &Low intent

How much test budget do you need?

● BigDataSoft, Inc.○ LTV: $4,500 per customer○ SaaS rule of ⅓

■ Can spend up to $1,500 per new customer

Let’s test for performance

But sales take a long time...

● What is our cost per lead?

● Lead scoring tools○ Work email address○ Geolocation○ Engagement with your site○ Budget○ Click through rate (CTR)

How to determine lead quality

● LaunchBit: SaaS advertising platform○ Email ad network○ Niche blog ad networks○ Audience targeting

Setting up a test

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

@launchbitElizabeth Yinelizabeth [at] launchbit [dot] com

@kissmetricsLars Lofgren llofgren [at] kissmetrics [dot] com

Questions?

Thanks for your time!

Thursday, January 16th, 2014