Categories
active trial active users Best Practices Business Insights Company Execution Company updates Customer Engagement customer success free trial free trial users Infographic infographics Marketing optimize sales paid account paid customers SaaS sales User Engagement

Totango Analyzed Engagement and Optimized Sales with Over One Million Businesses

over half don't use their saas paid service

Today, I’m happy to announce that Totango has analyzed the customer engagement and optimized the sales and customer success interaction with more than one million prospects!

We sure learned a lot from our beta stage and this is the place to thank all our wonderful customers who were taking part of our beta stage.

Out of the massive data we’ve gathered, here are 4 main conclusions that could help sales and customer success teams to understand where to focus in order to increase revenues: from new sales, expansion sales and renewals.

  • Free trial users who are still active during day 3 of their trial were 4 times more likely to convert into paying users than the average customer

What can I do with that information?
SaaS sales teams could use this insight by focusing their time and close more deals

  • Active trial users who were contacted by a sales rep were 70% more likely to buy the paid service than those who weren’t

What can I do with that information?
This proves that timely and contextual engagement with prospects results in more sales

  • A full half of paid SaaS customers log in less than once a month or do not use their paid service at all. Another 19% is using their paid service less than once a week. Only 14% of paid customers use their service weekly and only 17% use it daily

PR-Usage-Frequency

What can I do with that information?
Have customer success team focus on the non-active paid users and the sales teams to focus on the frequent users to increase upsell

  • Most cancellations were preceded by a period of non-use

What can I do with that information?
SaaS customer success teams could use this insight to configure alerts for inactive users and to pro actively reach out to these customers and offer help

PR-Infographics

 

Click to Tweet this Infographics

Embed this infographic on your site

Categories
acquisition cost Best Practices conversion rate increase conversion metrics paid account paid user qualified leads sales team trial conversion

Making the Most of Your Metrics – Part 2

Understanding data to increase conversion rates and key business processes

 

Last week, we established the need to measure the “right things” constantly in order to improve trial conversion. This week, we’ll discuss how those metrics can be used to actually improve your company’s trial conversions.

Trial conversion comes from multiple business processes: from sales, to marketing, to the product itself. In order for metrics and collected data in general to be valuable to your company, they must be actionable and this will mean different things to different aspects of a SaaS business.

Sales

For sales teams, it’s all about focusing on opportunities that matter most in your business pipeline. For the majority of SaaS sales teams, there are many more leads than the team can effectively handle. The team needs to be able to focus its energy on those that are more likely to convert into a sale.

Once you are working with reliable conversion rates and have eliminated the noise in the funnel, your sales team can use the same process to prioritize its work. Rather than contacting, qualifying and trying to convert all new trials, they should focus on those that appear to be “Actually Evaluating,” as those provide a much more likely sale.

Marketing

One of the key challenges for the marketing teams of a SaaS company is the need to properly qualify leads. The nature of Internet marketing is essentially casting a wide net into the unknown and trying to engage with as many people that are relevant to what you have to sell. The reality though is that you end up also engaging many that are not really relevant to your offering. Understanding the ratio between these two groups is essential to figuring out which marketing efforts are effective for your business. The ratio between effective (i.e.. “Actually Evaluating”) and total leads represents this exact number. This ratio is essential when determining if your marketing strategy is working and if your budget is well spent.

The ratio number will naturally vary by industry, but you need to make sure it’s under control, i.e. the number of qualified leads should constantly be growing; this will essentially lower acquisition costs (a fundamental parameter in business sales of a SaaS company).

Product

People that signup to your trial are primarily there to experience your product and assess it if fits their needs, and they expect to be able to do that quickly and with minimal effort on their behalf.

That means, someone who comes into the trial immediately gets it, is productive in attempts to evaluate product, has all the information they need, and the product’s general usability and experience is of high quality.

How to improve the product experience for your customers is something your product team needs to constantly assess (see “Getting your prospects to be come devoted users” provides solid ideas). But the key metric they should use to determine if they are making progress is conversion rate. What percentage of qualified leads ends up activating they account, using it and eventually upgrading to a paid account.

Summary

Data, when correctly measured and broken down into proper categories, becomes valuably actionable. Keep in mind that this activity is not a one-time effort; it has to be ongoing and continuously improved. The business needs to be able to measure data effectively, get the information in front of the right people at the right time, and constantly improve those metrics based on their true meaning.

Next week we’ll jump into understanding marketing automation, BI, analytics, and CRM.

To learn more about Trial Conversion please View our Webinar where we discuss Best Practices in Measuring Trial Conversion Rates for SaaS Applications:

 

About TOTANGO:

TOTANGO analyzes in real time customer engagement and intention within SaaS applications to help you grow your business

 

Want to measure your business metrics?
Try TOTANGO free for 30 days
sign-up1