Growing a SaaS Business

Post on 16-May-2015

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Learn how to grow a software as a service business. This deck covers enterprise growth, retention, and increasing renewal rates. Slides taken from the Growing a Saas Business class taught to startup founders and entrepreneurs by Dyn CTO Cory von Wallenstein at Intelligent.ly in Boston.

Transcript of Growing a SaaS Business

presents

CORY VON WALLENSTEIN@cvonwallenstein

Growing a Successful SaaS Business

@cvonwallenstein  from  @DynInc

Agenda • Story  of  growing  a  SaaS  business– Growing  enterprise– Ensuring  enterprise  reten=on– Growing  self-­‐service– Increasing  self-­‐service  renewals

• Your  story– Let’s  dive  into  what  maCers  for  you!

@cvonwallenstein  from  @DynInc

But  First,  Who  Is  Dyn?• Internet  Infrastructure  as  a  Service

– Managed  DNS  and  Email  Delivery

• 180  Global  Employees• Headquarters  in  Manchester,  NH  (offices  in  SFO  &  UK  too)• Raised  first  financing  in  Oct  2012:  $38MM  from  NorthBridge

@cvonwallenstein  from  @DynInc

Growing  Enterprise

@cvonwallenstein  from  @DynInc

@cvonwallenstein  from  @DynInc

How  we  grew  our  

Enterprise  business

• Rock  solid  product  that  met  a  proven  need

• Building  a  beCer  mouse  trap  didn’t  ensure  success

• Needed  to  stand  out  from  the  crowd– In  garnering  aCen=on– In  being  fundamentally  different

• Lock  arms  with  customers,  help  them  build  their  business,  they  will  help  you  build  your  business

• Not  selling  DNS,  selling  trust  and  confidence

@cvonwallenstein  from  @DynInc

Ensuring  Enterprise  Reten=on

@cvonwallenstein  from  @DynInc

@cvonwallenstein  from  @DynInc

How  we  retain  our  Enterprise  business

• Upsell  is  a  cri=cal  component  of  SaaS  growth– Near  50%  from  upsell

• Need  more  than  one  vector– Advanced  features– Service  consump=on• DON’T  USE  SEATS!

• No  one  likes  overages– Conversa=on  on  “congrats  on  the  growth,  let’s  make  sure  you’re  in  the  right  package  for  next  year!”

– Don’t  penalize  growth  of  customers,  reward  them!  

@cvonwallenstein  from  @DynInc

eCommerce(self  –service)

@cvonwallenstein  from  @DynInc

eCommerce  on  dyn.com  –  18  months$500k  per  month  in  new  recurring  revenue

Over  $6MM  per  year  growth

@cvonwallenstein  from  @DynInc

We  are  the  DNS  experts.

• Names  to  numberstwiCer.com  -­‐>  168.143.162.52

• Enterprise  (DynECT  DNS)

– $200/mo  &  up,  ARPU  $600/mo

• SMB  (DynECT  DNS  Lite)

– $30-­‐90/mo,  leading  to  full  DynECT

• Home  User  (DynDNS)

– $20-­‐$30/year,  ARPU  $50/year

@cvonwallenstein  from  @DynInc

Self  service  paCerns  of  behavior

• What  paCerns  did  we  find?– Purchase  paFerns• Freemium  vs  trials?• When  do  people  go  from  free  to  paid?

– Renewal  paFerns• When  do  people  renew?• How  do  they  renew?• Do  people  forget  to  renew?

@cvonwallenstein  from  @DynInc

Purchase  PaCerns

@cvonwallenstein  from  @DynInc

Freemium  vs  trials?

=  2x

@cvonwallenstein  from  @DynInc

When  do  people  go  from  free  to  paid?

@cvonwallenstein  from  @DynInc

When  do  people  go  from  free  to  paid?

@cvonwallenstein  from  @DynInc

Renewal  PaCerns

@cvonwallenstein  from  @DynInc

When  do  people  renew?

@cvonwallenstein  from  @DynInc

How  do  people  renew?

@cvonwallenstein  from  @DynInc

How  do  people  renew?

@cvonwallenstein  from  @DynInc

How  do  people  renew?

@cvonwallenstein  from  @DynInc

Do  people  forget  to  renew?

@cvonwallenstein  from  @DynInc

Your  Story

@cvonwallenstein  from  @DynInc

Fireside  Chats

@cvonwallenstein  from  @DynInc

Growing  a  Successful  SaaS  BusinessCory  von  Wallenstein

Chief  Technology  Officer,  Dyn  Inc.@cvonwallensteincvw@dyn.com

Course TitleCourse TitleINSTRUCTOR NAME