Archives for June 2014

Ideal Customer Profile Framework

Having a clear definition of your Ideal Customer is one of the most important things you can do for your business.

Your Ideal Customer Profile – ICP – dictates (or should dictate) everything from the features and functionality of your product you build or what makes up your service offering, to the words you use and the emotion you invoke or tap into in your marketing.

I think people forget that you actually get to choose your customers. You get to choose who you want to do business with. So creating an Ideal Customer Profile isn’t limiting… it’s empowering!

In fact, if you don’t choose who you want to do business with, your customers will choose you… and they may very well be less-than-Ideal.

There are obviously lots of ways to come up with your Ideal Customer Profile, lots of methods and templates and canvases… but over time I’ve developed this framework that works well for me.

And I continue to evolve it. When I do, I will update this post. The current version is for Q12017.

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4 Sales Mistakes That Lead To High SaaS Churn

steli-efti-close-ioI’ve said many times that the seeds of churn are planted early. Whether it’s in your marketing – both the things you say but also the types of customers you target with your messaging and outreach – to the things you say and do during the sales process, you could be acquiring customers that already have one foot out the door.

Because this issue is so important and really can’t be talked about enough, when my friend Steli Efti – CEO of Close.io – reached out and offered to share these four sales mistakes that lead to high churn, I was thrilled.

Be sure to check out the Afterword  below Steli’s article where I share some articles and resources that will help you further refine your Ideal Customer and reduce churn.

Okay, without any further ado… here’s Steli…

Four Sales Mistakes That Lead To High Churn for SaaS Companies

Churn is the biggest threat to sustainable SaaS growth. Sales teams often aggressively close deals because of myopic focus on immediate growth. What they fail to recognize are the long-term implications of short term focused selling to the business.

Here’s how to avoid the 4 most common sales mistakes that lead to high churn in SaaS.

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SaaS Free Trial: Requiring a Credit Card is Shortsighted

barbed-wireI got this email asking whether to require a Credit Card to start a SaaS Free Trial or not and what the best Free Trial length is.

So instead of just answering him directly, I decide to use it as the basis for this article.

Here’s the email:

Hey Lincoln, some dude told me to ask for a credit card up front with a free trial instead of the Freemium model I’m currently using. Just as your site says…customers psychologically get used to NOT paying with my freemium model and its a disaster.

However, your articles strongly suggest NOT to ask for the CC upfront for free trials as that dude suggests.

My plan was ask for CC upfront for a 7 day trial. Do you still advise against this plan? Reason I ask is your article is over two years old…so not sure if the market changed etc.

Here’s my response…

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