Guest Speaker: Drew Sanocki (@drewsanocki)
Main Takeaways
- DesignPublic.com, furnishing offices. Sold in 2012
- Now micro private equity: buying SaaS apps, particularly metrics
- Focus on highest ROI, identify the best customers and create more of them
- Every dollar you spend on retaining the best customers does double-duty.
- Increase value of those customers
- increase the number of future best customers
- Identify your best customers:
- Create metrics to identify the best customers based on their behavior
- Not all customers are created equal. 20% order once, never return, eat up support, don’t add a lot; 20% on premium pricing tier, don’t take up support time. Grow your business around them.
- Recency, frequency, money in spreadsheet
- Top quintile: 50%+ of revenue. SaaS = LTV of customer segments
- Create more of them
- Retention: based on when the customer churn, send targeted coupon, tripwire marketing
- Customer development (take worst, make best): look for bridges and understand what’s the feature set that cause a freemium user to start paying for the product
- Acquisition (marketing): based on the quality of the customers, you need to optimize the full interaction with them
Read notes of all the other talks in the Microconf 2014 Hub page.