The common refrain by SaaS experts that think business is just a math problem is that if a customer stays long enough to pay back the cost to acquire them (the metric is called Customer Acquisition Cost or CAC), they became a “profitable” customer (“unit economics” don’tcha know) and everything is great. Just do more of […]
Podcast: Getting Inside the Minds of Your SaaS Customers
July 7, 2015 Article by Lincoln Murphy
How do you define success for your SaaS customers? While it sounds simple, it’s not. Success is only achieved when your customers reach their Desired Outcome by their interactions with your company. But first, you have to understand what it is that your customers want to achieve — and that can take some work. I […]
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 […]
Podcast: Customer Success is the Foundation of Your Success
June 11, 2015 Article by Lincoln Murphy
Micky from Kahuna Accounting sent me an email to share that they grew their B2B business from 0 customers/0 revenue to 180 customers and $40k/month ($480k Annually) in just over a year, and a major part of that was their use of the Ideal Customer Profile framework. So Micky wanted me to share with other […]
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 […]
SaaS Free Trial Extension Requests are a Bad Sign
July 15, 2014 Article by Lincoln Murphy
I got this question about SaaS Free Trial Extension requests and I thought I’d answer it here, for all to see. “Lincoln, that was a great guest post by Steli Efti from Close.io on sales mistakes that lead to churn. I was reading Steli’s blog and found a recent post where he says “short trials […]
The Best SaaS Free Trial Length
July 13, 2014 Article by Lincoln Murphy
Here’s a secret no one talks about: SaaS Free Trial Length is a Marketing Gimmick. There isn’t a best SaaS Free Trial length that works for every SaaS company, in every category, for every market. I know, that contradicts my reputation for saying “always do this” or “always do that” but that’s the way it […]
Ideal Customer Profile Framework
June 25, 2014 Article by Lincoln Murphy
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 […]
4 Sales Mistakes That Lead To High SaaS Churn
June 21, 2014 Article by Lincoln Murphy
I’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 […]
SaaS Free Trial: Requiring a Credit Card is Shortsighted
June 14, 2014 Article by Lincoln Murphy
I 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 […]
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 […]
5 Steps to Unstick Your User Onboarding Flow
May 12, 2014 Article by Lincoln Murphy
The other day I got an email from a SaaS CEO friend of mine telling me his product team is finally ready to tackle a major problem with their onboarding flow during their Free Trial. It turns out they have one screen in the flow that is causing them big problems. And in this case, […]
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 […]
