Drew Sanocki is a an O-G of marketing. He used the skills he gleaned over the years in the trenches to turn around the fledgling clothing brand, Karmaloop. His secret? He focused on the fundamentals of growth by simply taking advantage of growth on every access. In this presentation at Price Intelligently's SaaSFest 2016, Sanocki catalogs the process and tactics he used to turn the company around, as well as his current company, Teamwork.com, where is the CMO.

1. Rapid
Growth
The approach that created $10m in
value in under 10 months at
Karmaloop.com
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2. FYIAll slides and files zipped at:
NerdMarketing.com/go/saasfest
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3. Karmaloop 2002 - 2015
» Adwords
» Social
» Blog outreach
» Traditional PR
» Affiliate programs
» Content marketing
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4. Nothing...
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5. Retention
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6. 6

7. 80/20
Most businesses could be growing
significantly faster with a even
small changes
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8. Who’s this guy?
The name’s Drew Sanocki
"Digital nomad"
» Blog at NerdMarketing.com/go/
saasfest
» @drewsanocki
» Marketing at TW /
drew@teamwork.com
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9. 2003 DesignPublic.com
Bootstrapped, grew, sold
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10. Since then...
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11. Actionable framework for rapid
growth?
(that works for SAAS)
(that I hope works for TW too)
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12. #1 Strategic
perspective
Michael Porter’s Five Forces
Jim Collins’ Good to Great
W Chan Kim’s Blue Ocean Strategy
Not relevant enough?
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13. #2 Tactical perspective
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14. #3 Multiplier
perspective
Only three ways to grow revenue:
1. ARPU
2. Churn
3. Number of customers
Ramit Sethi, Jay Abraham
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15. The results multiply
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16. Teamwork Projects
ARPU: $53
Churn: 40 months
Customers: 13,700
Total LTV: $29.6m2
2
Assuming you acquired them all at once, and LTV ~ revenue
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17. Teamwork Projects
+ 30%
ARPU: $69
Churn: 53 months
Customers: 17,800
Total LTV: $65.1m
Increases total customer LTV by
220%
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18. How to grow
1. Bucket all ideas by Multiplier
2. Within Multiplier, prioritize by speed and impact
3. Work back to front: Churn > ARPU > # Customers. Focus on
Multipliers 1 and 2 first (optimize before you spend)
More at: nerdmarketing.com/20
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19. Let’s grow
Some favorite tactics
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20. Multiplier #1
Churn 20

21. Customer churn is
costly
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22. #1 Reactivation /
win-back
campaigns
Reactivate lapsed customers
X months after defection, win-'em
back
TW: Sent 50K, re-engaged 300
They work, but...
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23. #2 Anti-defection
campaigns
Predict churn before it happens
Develop signals: start with Recency
- last-login time (SAAS)
- last purchase (ecom)
- nerdmarketing.com/19
Highest ROI campaigns you will run:
- DP: $250K in a day
- KL: 500% ROMI on anti-defection
offers
- TW: Just starting to test
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24. More pro-tips on anti-defection
campaigns
Ladder your promos: give away the farm gradually
- @10 days w/o login, Offer 1
- @20 days w/o login, Offer 2
- @30 days w/o login, Offer 3
Sync with email, FB custom audiences
Get on the phone! (#bigsaas)
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25. #3 Improve the
product
Better product, lower churn
Apps: Delighted, Qualaroo, Hotjar
TW: hi-lo
Gotta communicate it: TW move
from monthly to weekly updates
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26. Multiplier #2
ARPU 26

27. #1 Increase prices
SAAS marketing 101
Thesis: most companies
underestimate inelasticity of
demand
Build $10B PE Fund: Vista (just
bought Marketo)
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28. Pricing examples
KL: increased price of blank T's 30%
Impact: none on volume, +30%
increase in revenue
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29. TW pricing
Results: ARPU grew from €48.18 to €60.14 (+25%)
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30. #2 Cross-sell &
upsell
In 2006, Amazon reported that 35% of
their revenue came from their cross
sells and upselling efforts
Boosts ARPU
Enhances experience (batteries,
email + landing pages)
Differentiates offering
Expands margin, efficiencies
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31. Examples
KL: bounce-back campaign (#Drip)
Impact: 3% increase in revenue
Saas: What "triggers" produce
upgrades? Grey them out.
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32. TW cross-sell &
upsell
Upsell: #Drips to highlight
“trigger” features (custom
domains, css, etc.)
Cross-sell: #Drips to activate other
products (Desk, Chat)
No other products? What other
affiliates could you work into your
drips? Service, products, etc.
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33. #3 Bundling
DP: Huge. Hid discounting, put the
customer first
TW: on the roadmap
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34. Multiplier #3
Number of Customers34

35. Easier:
Think CRO first
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36. #1 CRO
You might not have a traffic problem; you might have a CR
problem
KL: 1m visits/month, 7% CR
TW: 1.6% conversion rate to trial
SAAS company: .08% conversion rate
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37. TW CRO
Key Saas conversions:
1. cold traffic —> trial signup
2. cold traffic —> opt-in
3. opt-in —> trial signup
4. trial —> purchase
Reworking with:
- funnel tracking (GA)
- Better #Drip sequences
- UI, flow changes
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38. 38

39. TW: What's working for CRO
Run a pop-up with opt-in offer (SumoMe, Opti Monk, Justuno)
Content upgrades on top blog posts
Onboarding sequence around our AHA moment (FB's 7 friends)
Pivot everything to remarketing, email
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40. 40

41. TW email
marketing
Moved to Drip as our CRM
Email more frequently (weekly)
Feature updates drive trials, reduce
churn
Feature-gating drives more upgrades
This email drove 50 upgrades
worth $6,694 MRR total and 66
trial signups
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42. #2 Content
marketing / SEO
Honeypot strategy
- Buffer (social media)
- Kissmetrics (LTV)
Who are your best customers?
Target a community and where it
hangs out.
- KL: Hauler videos
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43. TW content
marketing
Who are our target customers?
What do they want to hear about?
1. Look at the data (LTV segments)
2. Ask them! (Surveymonkey,
Hotjar)
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44. E-Z content
marketing
Try Philip Morgan's Audio-First
Workflow
1. Record a video
2. Transcribe (Rev.com)
3. Create article or -- even better --
upgrade
4. Pivot to Slideshare
5. Assemble into eBook
Total cost? 30min + $20
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45. #3 Paid acquisition
GG working well, but branded
terms
Basic FB ads not working for us
(yet)
We need more targeted funnel (Ad
--> LP --> Drip)
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46. Quick recap...
Three multipliers: ARPU, Churn, #
Customers
Rank within each, then move back
to front
30% each? 220%
Copy this sheet
(NerdMarketing.com/go/saasfest
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47. Thanks!Any questions ?
You can find me at:
NerdMarketing.com/go/saasfest
drew@teamwork.com
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