SaaS Marketing Plan: Rise of the Growth Copyists?

Let’s be clear… when it comes to your SaaS marketing plan, finding inspiration in the work of others is very different from copying them outright.

The American playwright Wilson Mizner famously said: “If you copy from one author, it’s plagiarism. If you copy from two, it’s research.”

So as a SaaS provider, if you copy the pricing pages, free trial sign-up form, viral expansion loops, and follow-up email sequence from several different SaaS vendors, you’re not plagiarizing them… you did “research” and now you’re implementing your learnings, right?

I call shenanigans on that… and here’s why.

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Who’s your ideal customer?

So far in 2013 I’ve helped 21 SaaS providers from around the world boost customer acquisition and lower their SaaS churn rates.

And in just about every instance I found myself asking them the same questions.

The fact that these questions were not easily answered or – if they were – that the answers were ignored, often shed light on the underlying cause of several different problems my SaaS provider clients faced.

From stagnating growth, to unacceptable churn, to a less-than-acceptable ROI on AdWords and other paid traffic spend, it became clear to me that we have a problem.

And this problem isn’t small or to be ignored.

To the contrary, it is resulting in SaaS provider executives – just like you – going back to their investors and board with less-than-stellar results, for Founders and CEOs of SaaS companies who know they have the best product out there pulling their hair out at the lack of new customers or the super-high churn rates.

And for the SaaS CMO and Marketing teams who have implemented rigorous A/B testing programs that are functioning properly but not resulting in statistically significant lift, the crisis is mounting.

What is going on here?!?!?!

Simple… you’re attracting the wrong audience and here’s why.

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SaaS Customer Success: Eliminate ‘Dead Ends’ to Drive Engagement

What if I said there was something you were doing right now that was actively reducing your SaaS customer success?

What if that thing you’re doing was standing in the way of driving higher levels of engagement and was reducing the amount of expansion revenue you’re generating while potentially increasing churn?

What if I said there’s a very good chance you’re doing it right now and don’t even know it?

What if I said that it’s easy to fix if you just keep reading?

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SaaS Customer Success: Start with Quick Wins

SaaS Customer Success starts by orchestrating “Quick Wins” for your customers, helping them bypass their natural tendency to seek out reasons not to use your service!

I was in Silicon Valley recently and I found myself talking about this idea of “Quick Wins” several times within the context of SaaS Customer Success and I wanted to share this idea with you, too.

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SaaS Churn Threats: Identify and Retain At-Risk Customers

Now that you are attracting the right customers and monitoring for and driving engagement to lower your SaaS Churn Rate, you need to start monitoring and getting proactive on Churn Threats.

SaaS churn threats aren’t just a signal that you have an at-risk customer; these are literally threats to your business, your revenue, your valuation & your ability to grow and they should be taken very seriously.

And since churn is a customer lifecycle issue, not just something that happens at the end of the customer lifetime, the seeds of churn are often planted early and they actually start to sprout over the course of the customer lifetime.

If you aren’t looking for it, you could miss that your customers are telling you that they’re going to stop paying you at some point very soon.

They’re telegraphing their next move and it’s up to you to read the signals and jump into action.

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SaaS Churn Rate Improvement: Monitor and Drive Engagement

In my last post I shared some actual ways to reduce your SaaS Churn Rate, including attracting the right customer and managing expectations.

In this post, I’m going to go deeper, and share some awesome methods for improving customer retention by leveraging the power of the SaaS business model, specifically the ability of the provider to monitor for and drive Customer Engagement.

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SaaS Churn Rate Reduction Starts with Attracting the Right Customers

Customer churn can have a devastating effect across your entire SaaS company. From the negative impact on your company valuation because your SaaS churn rate is too high, to the drag on growth you feel when you have to replace lost customers or revenue before you can make forward progress… churn is bad news.

Over the next several posts I’ll outline five methods for churn reduction and customer retention that fully embrace the power of the SaaS business model…. let’s get started.

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SaaS Churn Rate: Go Negative with Expansion Revenue

I mentioned “Expansion Revenue” and “Negative Churn” in my post SaaS Churn Rate: What’s Acceptable? and I wanted to expand on those concepts a bit.

I honestly believe that fully grasping the power of these two concepts could change your SaaS business forever.

No pressure… but you might want to read this post carefully.

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SaaS Churn Rate: What’s Acceptable?

Is 5% a good monthly SaaS Churn Rate? Read on to learn the answer…

As a consultant to SaaS and Cloud providers that are looking to grow, I get asked what an acceptable SaaS churn rate is all the time.

As I stated in my Sandhill.com article SaaS Providers: Growth Requires Proactive Customer Retention the answer is you want a churn rate that is “as low as possible.”

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SaaS Customer Retention is the key to Long-term Profitability

Profitability is one goal that most of the SaaS CEOs who ask me for help all share, and SaaS customer retention is the key to achieving that goal.

Though, while they’re all focused on achieving profitability, how that is measured varies from company to company, for the sake of this post we’ll consider profitability to be achieved once the Customer Acquisition Costs (CAC) have been paid back and the ongoing contribution margin is positive.

So the reality around Customer Churn is that for every customer you lose through attrition, cancellations, or non-renewals – you have to acquire one new customer just to break even… and that’s a tough way to grow!

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