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.