A Blume Ventures event in early 2012 on SMB SaaS in India

1. SMB/ENTERPRISE – SAAS
ON THE CLOUD
blu l i t e

2. SCHEDULE
• 3.45 – 6pm: SaaS topic discussion
• 6.00– 6.30pm: Tea Break
• 6.30 – 8pm: Blume SaaS portfolio mixer with VCs
• 8 – 9pm: Drinks /Food

3. PANELISTS

4. ONLINE MARKETING

5. QUALITATIVE
• What channels of online marketing works for you -
SEM vs SEO vs Content Marketing vs Social Media.
• How do you prioritize and what kind of team
structure do you need for running these activities?
• What are the critical pain points in the sales funnel:
• Visibility (# of website hits)
• # of hits to customer Trials
• Customer Trials to Paid Customers

6. QUANTITATIVE
• Monthly Recurring Revenue (include servicing) with
relation to CAC
• CAC with relation to LTV.
• Life of Customer (defined by churn)
• Acquisition Rate vs Churn Rate
• Cost of Servicing the Customer vs Churn Rate

7. SALESFORCE SUBSCRIBER BASE
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
1800
1600
1400
1200
1000
800
600
400
200
0
2001 2002 2003 2004 2005 2006 2007 2008
Customers '000
Paying Subscribers Subscribers Growth of subsribers

8. KEY METRICS
# of website hits per day <100 <500 <1000 >1000
website hits to trials <5% <10% >10%
trials to paid customers <10% <20% <30% >30%
MRR <$10 <$20 <$30 >$30
CAC <$50 <100 <150 >150
Churn rates <1% <5% <10% >10%
Life time (years) 1 2 3 4
Customer Support <$10 <$20 <$30 >$30

9. PRICING

10. PRICING EXAMPLES

11. PRICING THOUGHTS
• Decide on one metric and don’t confuse the
customer – pricing evolves from there.
• What metrics and features should limit
or differentiate the pricing plans
• Freemium/Trial to Paid: B2B/B2C, product/services,
time/metric, what plan.
• Paid/Pay as you go – defined by barrier to entry

12. SOME EXAPMPLES
0
-0.1
-0.2
-0.3
-0.4
-0.5
500
400
300
200
100
-
% reduction
Price/test
Price per test % reduction in price/test
100%
80%
60%
40%
20%
0%
-
6
5
4
3
2
1
Free Photos/Docs High Res
Photos
Videos
% reduction
Price /GB
Price per GB % reduction in price/GB

13. PRICING THOUGHTS
• Least – Most expensive or the other way round
• Monthly/Annual should correspond to industry
dynamics
• Number of Plans
• Highlight the most used plan
• Naming conventions:

14. PANELIST PRICING
80%
60%
40%
20%
0%
2.5
2.0
1.5
1.0
0.5
0.0
Basic Silver Gold
% reduction
Price /missed call
Price per missed call
% reduction in price/missed call
0%
-20%
-40%
-60%
-80%
400.0
300.0
200.0
100.0
0.0
Basic Silver Gold
% reduction
Price /section
price/section % reduction in price/sectionpagesl
0%
-5%
-10%
-15%
-20%
1500
1000
500
0
Robust Advanced Enterprise
Ready
% reduction
Price /features
Price for features
% reduction in price/features call
0%
-5%
-10%
-15%
-20%
-25%
-30%
12.0
10.0
8.0
6.0
4.0
2.0
-
Robust Advanced Enterprise
Ready
% reduction
Price /transaction
Price per transaction
% reduction in price/features call

15. PRICING THOUGHTS
• Reduction as the plan scales need to make sense
till it plateaus + Should reduction be uniform for all
plans?
• Add on/Upgrades – should be promoted not shown
on pricing

16. PANELIST PRICING
180%
160%
140%
120%
100%
80%
60%
40%
20%
0%
Price /section
reduction in price/CPU - 12m
reduction in price/CPU - 6m
reduction in price/CPU - 3m
reduction in price/CPU - 1m
0%
-20%
-40%
-60%
-80%
-100%
100
80
60
40
20
0
Robust Advanced Enterprise Ready
% reduction
Price /survey
Price per survey % reduction in price/survey call

17. INSIDER SALES

18. Q&A
• What is Inside sales?
• How is it different from pure customer support?
• Breakup of self serve & inside sales
• CLV vs CAC
• Product is sold or bought – features/apps vs
complex product (CRM)
• Innovative compensation plans

19. INSIDER SALES..
• Innovative channel partners + commission
• Sales Cycle & Payment terms
• Upsell strategies – Customer support /sales
• Leads/ representative
• Touch points
• What have been your learnings?
• Where can we hire the right inside sales people

20. TECHNOLOGY
• Sales (Zoho/Salesforce/SugarCRM/Pipedrive)
• Bug Tracking
(CodebaseHG/Redmine/unfuddle/recurbe/Bitbuck
et/Jango/DataRPM)
• Support: Desk.com, Supportbee, myhive, freshdesk,
• Project Mangament: Asana, Treilo

21. OTHER
• Company Structure
• Content Marketing
• Web marketing
• Online Sales
• Customer Support
• Incorporation
• Invoicing
• US/Singapore/India – patent/subsidiary
• Optimum Funding
• Angels/VCs
• Runway

22. BLUME BANGALORE & EXPANDING