What is a good SaaS Churn rate? The easy answer is as low as possible. But there’s more to it; that’s what this post is for.
Customer Success: The Difference between Stretch and Bad-Fit Customers
April 13, 2016 Article by Lincoln Murphy
What are the characteristics of a Bad-Fit Customer for your business? It’s great to know who your Ideal Customer is (my Ideal Customer Profile Framework is constantly updated), but it’s much easier – and I say required – to first identify the types of customers that are a bad fit and the characteristics that make […]
You Have to Know why Your Customers Churn
January 20, 2016 Article by Lincoln Murphy
When customers churn, that’s a problem. Even if their churn was “unavoidable” it still hurts. Churn hurts on several levels: from lowering revenue to hurting employee morale. And churn means something happened to the customer (out of business, acquired, etc.) or – and MUCH more likely – they didn’t achieve their Desired Outcome through their […]
Use Customer Success to Reduce Credit Card Failures
December 15, 2015 Article by Lincoln Murphy
Customer Success, done correctly, has the potential to impact your business in myriad positive ways; from customer retention to advocacy, and from account expansion to CAC Efficiency. So when I got this question in the comments section of one of my churn rate posts and started to answer, it turned into a post all its […]
Upgrading Grandfathered Early Customers
December 15, 2015 Article by Lincoln Murphy
In my epic tome, the Pricing Strategy Framework for SaaS Startups, I mentioned that the price testing I recommend will result in some customers paying a different price from what you have now; and that this is okay. Sometimes this “grandfathering” of customers happens because you’re explicit with those customers; “if you sign-up today you […]
Qualifying Leads in a SaaS Free Trial
December 2, 2015 Article by Lincoln Murphy
I got this set of questions on Twitter: “Is there a certain level of activity during the free trial that is likely to predict conversion from free to paid? Also, how do other companies handle Sales vs. Marketing Qualified Leads (SQL vs. MQL) when it comes to Free Trials?” I thought that was an awesome […]
The Fiction that Friction Improves Customer Onboarding
July 2, 2015 Article by Lincoln Murphy
A few months back an article was published that talked about how this popular brain training game (I can’t remember what it’s called) made their onboarding process MORE complex – not less – and increased their active users by 10%. While the article was very clear on when to add friction, most of the discussion […]
Customer Psychology and the Unexpected Power of Surveys
June 30, 2015 Article by Lincoln Murphy
Surveys can be dangerous if used wrong, but can be super-powerful if used correctly! Whether it’s the Net Promoter System to gauge customer satisfaction, doing pre-launch customer development work for your startup, or one of the myriad methods we use to interact with and learn from our customers, prospects, and other people, surveys are by […]
How Social Proof Actually Works in Marketing
June 24, 2015 Article by Lincoln Murphy
I’m not a psychologist, but I play one every day as I try to figure out why people (users, customers, visitors, etc.) do what they do… and how to get them to do more of what I want them to do. I spend a lot more time reading books about – and otherwise studying – human […]
Customer Success Starts at Sales Done Right
June 23, 2015 Article by Lincoln Murphy
After getting a demo of their new product from their Chief Data Officer (Luke Deka) while I was in Poland, I was excited to catch-up with Greg Pietruszynski, CEO of Growbots, when I got back to San Francisco. We talked about lots of different topics, but the post that my friend Steli Efti from close.io […]
Achieve Network Effect on a Smaller Scale
June 22, 2015 Article by Lincoln Murphy
I was talking to my friend Piotr Zaniewicz the other day about the importance of network effects on SaaS businesses. I mentioned how the common misconception around network effects is that, in order to achieve a real network effect (this is the reason some people say B2B SaaS can’t be “viral”), the level of critical […]
3 Secrets of High-Converting SaaS Free Trials
June 10, 2015 Article by Lincoln Murphy
While just about every B2B SaaS company offers a Free Trial – especially those with self-service sales models – in my experience, the percentage of SaaS companies that feel their Free Trial is “successful” is fairly low. Disappointingly low, actually. And it absolutely doesn’t have to be that way and in this article I’ll show […]
How To Get Sales To Help Test your Ideal Customer Profile
June 4, 2015 Article by Lincoln Murphy
I was talking to the CEO of a SaaS startup on Clarity about a dilemma many companies go through. They’ve decided it’s time to get deliberate about their progress and start testing their Ideal Customer Profile… but there’s a problem. They already have sales develop reps (SDRs) generating leads and account executives (AEs… aka sales people) closing […]
Stick Point: When Your SaaS Customer is Truly a Customer
June 4, 2015 Article by Lincoln Murphy
In my recent article on accurately calculating your SaaS metrics, I mentioned how some customers shouldn’t be considered customers yet. I referred to the fact that there’s a “stick point” or that point in time in the early part of the customer lifecycle where – if a customer makes it that long – they’ll likely stay […]
Free Trials Do Not Devalue Your Enterprise SaaS
June 3, 2015 Article by Lincoln Murphy
The CEO of a SaaS company reached out to me the other day and he had a very dangerous misconception that could seriously impact their potential as a company. I hope by talking about it here I can save more SaaS companies from falling into this trap. They sell to large customers and the dangerous misconception was that […]
4 Undercover Ways to Hack Social for More Sales
May 25, 2015 Article by Lincoln Murphy
How often do you hear the term “Social Selling” and either can’t figure out what it actually means or just want to call shenanigans on it? You know you’re not going to close a six-figure deal on Twitter, right? That’s not reality. But that doesn’t mean that Twitter (or any social network) can’t be leveraged to accelerate […]
The Success Gap: A HUGE Opportunity You Haven’t Considered
April 3, 2015 Article by Lincoln Murphy
There is often a gap between the functional completion of your product and the customer’s Desired Outcome. I call this the Success Gap. And this Success Gap that stands between what your product does and your customer’s Desired Outcome is a huge risk for you. It’s also a huge opportunity if you bridge the gap […]
Your SaaS Metrics Are Wrong if You Include These Customers
March 20, 2015 Article by Lincoln Murphy
A user is someone that uses your SaaS product, right? Or is it someone that signed-up? Or someone that’s active? Or someone that logged in a few times? Hmm. Okay, so maybe defining a user is hard, but defining a customer is easy, right? A customer is someone that pays you for your product or […]
Active Users are a Vanity Metric
March 20, 2015 Article by Lincoln Murphy
Active customers churn. And when they do we’re shocked and confused. How can this happen? Your customer was very active, logging-in several times in the last month. I think it’s fair to say that if Active customers churn, then “active” – as a customer “state” – clearly doesn’t equate to success. So if it doesn’t […]
CAC Strategy is the Key to Scaling your SaaS Company
February 26, 2015 Article by Lincoln Murphy
Starting a SaaS company and scaling a SaaS company are two very different things. The same is true for “scaling” a SaaS company in the very early days vs. scaling a SaaS company through the growth phase. And since every company is different and experiences those “phases” at different times in different ways, you have […]
Let Your Customers Write Your Marketing Copy
February 24, 2015 Article by Lincoln Murphy
I spend a lot of time talking to SaaS companies about how they should identify their Ideal Customers, understand how they operate, know what their Desired Outcome is, listen to what they say, etc. etc. Whether it’s a focus on acquiring new customers, working to engage prospects already in the pipeline or customers you’ve just acquired… or […]
Exposed! A Top-Secret “Enterprise Pricing” Growth Hack
December 22, 2014 Article by Lincoln Murphy
When it comes to SaaS, you basically have two sales models: high-touch and self-service. Small, bootstrapped SaaS companies often like to go the low-touch, self-service way. Large, venture-backed startups often like to take the high-touch, Enterprise sales approach. And sometimes it’s the opposite of that. It depends. There are just so many different factors that […]
The Only 3 Acceptable Pricing Page Discount Tactics
December 21, 2014 Article by Lincoln Murphy
I get this question from time to time: “Lincoln, is it okay to offer discounts right on your pricing page?” Short answer: No. The longer answer, with some nuanced yesses thrown in, along with some tactics that you can employ, is below…
Engaging at Scale: The Secret to Automating Personal Emails
December 21, 2014 Article by Lincoln Murphy
About a year ago I shared my super top-secret way to automate personal emails more effectively – called the “Customer Success bot” method – with the awesome folks on my mailing list. Since then, I’ve come up with several new uses for this framework that have proven to be incredibly effective ( I’ve shared those […]
5 Growth Hacks to Supercharge your Invite or Referral System
December 19, 2014 Article by Lincoln Murphy
When was the last time you referred your friends or invited co-workers into an app after you just signed-up for the free trial? When was the last time you imported your address book right after you opened an app for the first time? Right. So why do you expect your users and customers to behave differently? Unless […]
The Myth of Unavoidable Churn
December 10, 2014 Article by Lincoln Murphy
When it comes to customer churn, there are two kinds: avoidable and unavoidable. But I guarantee that the amount you label as “unavoidable” is actually much smaller than you think. I know, but… “Most of our churn is out of our control, so it’s unavoidable” “We sell to SMB and in that market churn is inevitable.” Accepting that […]
The Secret to Successful Customer Onboarding
October 22, 2014 Article by Lincoln Murphy
Também disponível em Português por Mathias Luz Customer onboarding has come up a lot lately, which is great since having a poor onboarding experience for your customers can pretty much kill your growth… if not your business. The first in-app experience your customer has with your product sets the tone for your relationship, and if it’s […]
7 Sanity Checks for Sending Cold Email
September 22, 2014 Article by Lincoln Murphy
Email Prospecting, the once-secret method (still) used (to great effect) by the hottest companies to get the attention of the biggest enterprises out there – even if all they talk about publicly is inbound marketing, adwords, and social – is no longer a secret. Thanks to folks like Heather Morgan of SalesFolk, Aaron Ross, author of Predictable […]
10 Growth Hacking Lessons from Dodgeball
August 14, 2014 Article by Lincoln Murphy
I hit Nick Mehta, CEO of Gainsight, right in the gut. And then I took a hard shot to the chest by Gainsight’s New Business director. Working in a startup is rough, lemme tell ya. As Nick and I stood on the sidelines during this company outing – battered, exhausted and laughing – watching the remaining […]
How-to Avoid SaaS Free Trial Abuse
July 27, 2014 Article by Lincoln Murphy
At the Black Hat conference in Las Vegas, a security research duo showed how they built a cryptocurrency-mining botnet by leveraging cloud platform services – like Amazon Web Services, Heroku, or Google App Engine – using only Free Trials and Freemium accounts [PDF]. Cue the overly-dramatic sky-is-falling music as we mourn the demise of SaaS Free Trials […]
3 Email Lead Capture Hacks to Get More Customers
June 13, 2014 Article by Lincoln Murphy
Sadly (for us… pretty awesome for them, I suppose) Stacklead was acqui-hired by LinkedIn and is being shutdown. If we’re honest, email lead capture is pretty much why we have a website. I mean, aside from making a sale the first time someone hits our site, the main goal of everything we do – especially […]
How-to Use SaaS Pricing Discounts to Grow Revenue
March 24, 2014 Article by Lincoln Murphy
When it comes to SaaS pricing, discounts are both awful and awesome. Unfortunately (or not), we just don’t live in a world of absolutes. Generally, I like to avoid discounts because the way they’re done most of the time can will devalue your offering in the eyes of the customer. And that’s because most of […]
Customer Development Hacks for SaaS Startups
March 13, 2014 Article by Lincoln Murphy
The two main concerns SaaS vendors looking to ramp customer acquisition have are 1) how do I get my product in front of my ideal customers and 2) how do I identify those ideal customers in the first place… the answer includes Customer Development. For super-early SaaS startups, however, the second question is the main […]
The Greatest Word of Mouth Follow-up Question… Ever!
March 10, 2014 Article by Lincoln Murphy
Companies – SaaS or otherwise – tell me all the time that Word of Mouth (WOM) is one of, if not the top, method for acquiring new users and customers. While that’s great, what can you really do with that information? Here’s an idea…
How to Get in Front of your Ideal Customers
February 21, 2014 Article by Lincoln Murphy
When it comes to marketing, distribution is key… getting your product in front of your prospective customers is the most important thing. And yes… there’s more to life than AdWords. But no matter what distribution channels you leverage, the most important thing you can do is get to know your customers and prospects better than […]
Email Marketing: How Vero Got a 450% Increase in Conversions
February 11, 2014 Article by Lincoln Murphy
For SaaS vendors of any size and at any stage, email marketing – from newsletters to transactional messages – can be an amazing customer acquisition and retention tool. Nothing has replaced, displaced, or outpaced email as a super-effective medium to engage your audience – from prospects to customers – and it doesn’t seem likely to […]
Customer Success: 22 Ways To Reduce Churn With Growth Hacking
January 30, 2014 Article by Lincoln Murphy
As the SaaS industry continues to rapidly mature, more folks are looking at churn in SaaS companies – investors, analysts, executives, consultants, etc. – and more and more methods of measuring churn are going to surface… and that’s awesome. Of course, the problem is that, while analytics and metrics and new ways of measuring churn […]
The best way to grow your SaaS business
January 20, 2014 Article by Lincoln Murphy
If your SaaS addresses a big- or specific-enough problem that people are willing to pay to solve, you can probably achieve enough growth to result in a decent-enough sized business… in spite of your efforts. But you didn’t set out to build a “decent-enough” sized business, right? Don’t you owe it to your shareholders and […]
Case Study: Growth Hacking Pre-Launch Revenue
January 15, 2014 Article by Lincoln Murphy
Whether you’re pre-launch, post-Product / Market Fit (P/MF), or an expansion stage SaaS vendor, Growth Hacking – the methods, tactics, and especially the mindset behind it – can be leveraged by companies at all stages to accelerate growth. Of course, the stage of your company dictate what growth you’re trying to hack achieve, the success […]
Freemium or Free Trial? There’s a Better Question
January 9, 2014 Article by Lincoln Murphy
I answer this question all the time… should we go Freemium or Free Trial for our SaaS app? And I get this question from companies of all stages and sizes, including pre-launch Startups, software companies moving to – or adding a product line based around – the SaaS business model, or for later-stage SaaS companies […]
