Dan McGaw, Director of Marketing at KISSmetrics
Build The Right Funnel and Grow Your Business Fast April 2014
@DanielMcGaw #KISSwebinar
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1 What is activation?
2 4 levers for industry domination
3 Common pitfalls of testing
Table of Contents
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What is Activation?
1
Your SaaS funnel
What is Activation?
Not only do people need to create an account, they need to start using your product.
Are people using your product?
No value = No sale
How to define activation
Activation is the critical step people need to take in order to get value from your product
Facebook Activation = 10+ Friends
What is Activation?
Evernote Activation = First note wri!en
What is Activation?
Instagram Activation = Filter used on an image
What is Activation?
Basecamp Activation = Project created
What is Activation?
Make sure to track activation
It’s the most important part of your funnel and everyone forgets it.
What’s a lever?
A change to the funnel that helps you maximize results.
Lever #1: Free Trials
People love free
More people will try your product
Trial Funnel
Funnel Levers
Visited Site UpgradedTrial Sign
UpActivated
Basecamp Free trial
Funnels Levers
On-ramp program is critical
You have a limited number of days to make the sale. Don’t waste them.
What’s your on-ramp program?
The new user experience (NUX) should be completely different than your regular program.
Shopify NUX
Funnel Levers
14, 30, or 45 day trial?
You need to find out what works best for your company
Funnel Levers
Replacing the free trial
Try replacing your free trial with a 30-day money back guarantee.
Lever #2: Freemium
Again people love free
Can be hard to convert free into paid
Looking for user growth?
Freemium is where you want to be.
What do you limit?
There’s a balance between offering enough so people sign up but not offering too much so they never upgrade.
1 Dropbox = 2 GB of Storage
2 Evernote = 60 MB of Uploads
3 MailChimp = 2,000 Email Subscribers
Common Freemium Limits
MailChimp Freemium
Funnel Levers
Freemium users take forever to upgrade
Very difficult to track changing behavior over time with a long-term funnel.
Cohort reports help a lot with freemium
Funnel Levers
LOG IN WITH GOOGLE
Start Your Free KISSmetrics Trial
Lever #3 Up-front Credit Cards?
Funnel Levers
When do you collect credit card info?
At account creation or at upgrade?
?
Credit cards up front
Fewer people will create an account but a LOT more will upgrade (especially if the upgrade is opt-out).
Credit cards at upgrade
Much easier to get people to create an account, much harder to get them to upgrade.
AWeber $1 Trial
Funnel Levers
Maximizing users or revenue?
• If users, try no credit card • If revenue, try up-front credit cards.
Lever #4 Monthly or Annual Billing
Funnel Levers
Is the focus on users or revenue?
Monthly gets more users, annual gets more revenue.
CrazyEgg used to be monthly
Funnel Levers
KISSmetrics offers both but with a discount for annual
Funnel Levers
Your funnel levers
1 Free Trials
2 Freemium
3 Credit Cards Up-front
4 Monthly or Annual Billing
Test different levers to achieve the highest growth
Funnel Levers
Common Pitfalls
3
What Should You Focus on First?
Look for bo!lenecks in your funnel
What step is a serious roadblock for people?
Very few people go from Activation to Upgrade
Common Pitfalls
Use levers to fix bo!lenecks
Common Pitfalls
Are You Only Testing the
Funnel?
Variation B performs the best in this funnel
Common Pitfalls
Variation A gives the most revenue
Common Pitfalls
Should We Test Randomly?
Why did you get your results?
If you just start testing without first understanding user behavior, you won’t be learning.
Do you have qualitative data?
Once we understand our users, then we can
work the levers for the best fit.
Where do we get qualitative data?
Talk to your customers.
Questions? We will do our best to answer
THANK YOU
Dan McGaw @danielmcgaw