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b2b saas Best Practices customer success free trial free trial period freemium Interview pbworks RC-SaaS Free Trial & Freemium sales model sales revenue trial period User Engagement

Freemium Sales Models for B2B and SaaS

PBWorks

As promised, here is the second tip from Chris Yeh, VP Marketing of PBWorks about freemium sales models for b2b and SaaS.

Knowing of the advantages of free trial / freemium models, I agree that companies that are making the adjustments towards those sales models have an advantage in today’s online market where users can pick their products without a moderator (sales person) and pay for it only it it’s valuable for them

Similarly, Chris believes that the way to business success is establishing a trial for its product. This way customers feel they’re not taking a risk by buying a product but they test it first and understand how the product works before paying for it and this is tremendously important for building up a Successful contemporary business.

In his blog post: Bought vs. Sold (Why Jive is a dinosaur & Dropbox is the future), Chris compares 2 types of companies that have similar revenues achieved it in very different ways. The first company is Jive software and the other is Dropbox.
Jive is a 10 years old traditional enterprise company who spent millions of dollars in marketing and still not profitable and on the other hand there’s the 5 years old Dropbox, who has 40 employees already and a hundred millions in revenue.

To read the full transcription of the video, click here

 
 

Video Transcription:
I’m Chris Yeh. I’m the VP of Marketing for PBworks, which is a SaaS company that does collaboration software for various markets like advertising agencies, law firms and, of course, general business.

Well, it just so happens that I wrote an extensive blog post about this, comparing Jive Software with Dropbox, two companies which, interestingly enough, have almost the same revenues, but have achieved them in very different ways. Jive is a traditional enterprise company that was started almost 10 years ago and has spent hundreds of millions of dollars in marketing to get to where they are today and are still not profitable.

On the other hand, we have Dropbox which was started in 2007, has something like forty employees in a hundred million in revenues and so where I really see this going is that you know, certainly the tradition enterprise world still applies to large complex products but the ability to get a trial going, the ability to get people to say, okay I’m not taking a risk by buying this product, I know that it can deliver for me, is tremendously important for building up the business, so somebody like Dropbox or somebody like PBworks who offers the ability for people to really understand how the product works before they have to make a six figure commitment I think and that’s the way to go.

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Best Practices Business Insights Customer Engagement customer success Customer value free trial freemium increase trial conversion rate RC-SaaS Best Practices successful saas business trial period

Trial Conversion is Top Priority in SaaS

Trial Conversion is Top Priority for SaaS-DreamSimplicity Interview

Interview to DreamSimplicity.com

Thanks so much to Matt Childs for giving me an opportunity to tell the Totango story on DreamSimplicity.

Matt and I met each other on a very nice day at San Francisco and conducted this interivew which is actually about Totango’s core believes.

Here are the main points from the interview we had:

The Customers are Kings

Totango is all about helping SaaS companies to be more successful by understanding their customers.
The idea with SaaS is that customers are kings, meaning that in order to be a successful SaaS company, businesses should make sure their clients continuously have value, otherwise customers have other choices and they can easily switch into other solutions, so that Totango helps them understand the value they are currently getting from their service and continuously improve the value they are providing to their customers.

Increase Trial Conversion Rate

One of the big challenges big companies are currently experiences is that they have enough leads but having free trial or freemium programs, they are naturally trying to convert those free accounts to paying customers and in order to get there they will need to make sure that customers are getting value through their trial and they can help them being more successful.
So what Totango does is actually help them see what their users do during their trial period and then help them convert into paying accounts.

View the complete interview in the following link:

Get your FREE copy of our latest RESEARCH:

The 2012 SaaS Free Trial, Freemium and Pricing Benchmark

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About Totango:

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

 

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Business Insights customer experience customer lifetime value freemium Response saas metrics successful saas business trial period user experience

Customer Lifetime Value and Customer Experience

Lately, I’ve started building a SaaS Dashboard for my own usage (which I’ll be happy to share with others as well) and I have put together a short survey in order to learn what are the key metrics to measure SaaS business success. As I posted in our previous post, every metric matters when trying to see the whole picture, however, according to Chris Zane’s interview in Christoper Brown latest post, if he could only have one measure to manage his business, he would have chosen “lifetime value of customers”.

This metric, in Zane’s opinion is not a static number but a dynamic one that can grow with the customer, so that customers will first purchase their bike when they’re 4 years old, then when they’re 6, again when they’re 12 and they might come by to buy their own kids their first bikes. That’s the power of a happy customer.

This classic example could be taken to any sort of business, as in all businesses, it is critical to understand customers behaviour.

What is ‘customer lifetime value’ translated to the terms of a SaaS company? It’s when your service is valuable and highly appreciated by your users who chose to repeatedly and constantly use your service.

Most customers will encounter SaaS online services when signing-up to their free trial period / freemium. As the funnel goes on, the amount of users converting to paid customers naturally goes down, however, user’s usage pattern in crucial to understand what’s behind those numbers and also to reflect the users behaviour and needs.
Therefore, even though measuring many other metrics should be taken under account, I agree that customer lifetime value should be standing in front of our eyes when thinking of our business plan.

To run a successful SaaS business and increase the chances to gain lifetime users and revenue, a business must make the right conclusions and adjust its service according to customer / user experience.

Tell us how you adjusted your service to fit your user’s needs!

 

 

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

 

Increase you customer lifetime value!
Try TOTANGO free for 30 days
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