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Drew Sanocki – How I Built My Business to $5M in Revenue in 3 Years (Microconf 2014)

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.

Harry Hollander – Sales calls don’t need to be painful (Microconf 2014)
Benjamin Curtis – Selling to Developers: Mission Impossible? (Microconf 2014)

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PhraseExpander is a better alternative to TextExpander, Phraseexpress, Breevy, Texter, Instant Text, ShortKeys, AsUType and Activewords.

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