Killer SaaS Metrics: The Impact of Churn, Customer Success and Instrumentation on SaaS Performance - Punchlime Presentation Slides - January 2014
Killer SaaS Metrics: The Impact of Churn, Customer Success and Instrumentation on SaaS Performance Presentation slides by Stanley Sarpong, Olju Man, and Atiq Khan from Punchlime Punchlime believes that one of the biggest reasons why startups fail is a lack of customers. Our innovative business model helps ensure the success of our portfolio companies and the ROI of our portfolio companies' investment partners by strengthening in-house capabilities. Punchlime's approach is to devote our top tier team, comprised of senior former Googlers, experienced entrepreneurs, business strategists and venture investors, to enable our portfolio companies to boost customer acquisition and all that it entails. Visit our website: http://www.punchlime.com Like Punchlime on Facebook: https://www.facebook.com/punchlime Follow Punchlime on Twitter: http://www.twitter.com/punchlime Add Punchlime on Google+: https://www.google.com/+Punchlime Subscribe to our YouTube channel: http://www.youtube.com/user/punchlime1 About Stanley Sarpong: http://www.punchlime.com/team/stanley-sarpong About Olju Man: http://www.punchlime.com/team/olju-man About Atiq Khan: http://www.punchlime.com/team/atiq-khan
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Killer SaaS Metrics: The Impact of Churn, Customer Success and Instrumentation on SaaS Performance - Punchlime Presentation Slides - January 2014
- 1. Killer SaaS Metrics. The Impact of Churn, Customer Success and Instrumentation on SaaS Performance Stanley Sarpong, Olju Man & Atiq Khan. @ Updated January 2014 Punchlime Confidential and Proprietary
- 2. The Blind Men & Elephant. Image source: expertcytometry.com Punchlime Confidential and Proprietary
- 3. Saas Conversions. Case Study 200,000 Visitors 10% 20,000 Free Trial Signups 2.5% 500 Free Trial Users 40% 1% 200 Converted to paid Punchlime Confidential and Proprietary
- 4. Key SaaS KPIs. 1. COCA 2. LTV (Cost of Customer Acquisition) (Life Time Value per Customer) 3. Churn (Customers you lose per month/year) Punchlime Confidential and Proprietary
- 5. Why Churn is Your Killer Metric. Potential impact of Churn on Revenue & Valuation Success Metrics Scenario 1 Scenario 2 Customers Acquired 1200 1200 Average Monthly Revenue per customer $700 $700 Customers Lost 180 90 Customer Churn 15% 7.5% 6.7 13.3 $5.6M $11.2M $28M $56M Average Lifetime in Months per customer Total Revenue Valuation (if 5x) 5 Years Example. Punchlime Confidential and Proprietary
- 6. T Ford. The car without a dashboard You can drive it, but you do not know how far you will get. Image source: kpilibrary.com Punchlime Confidential and Proprietary
- 7. Key Metrics per Evolution Stage. 1. Site Visitors 2. Trials 3. Stickiness 4. Signups 5. Recurring Revenue 6. COCA & LTV Punchlime Confidential and Proprietary
- 8. One Metric That Matters. At each stage of the business evolution 1. Site Visitors 200K Early Days Visitors Optimization Opportunity! 10% 20K 2. Trials Signup conversion Signed Up 500 Trial started 3. Stickiness 0.25% Visit to Trial Conversion 4. Paying Clients 250 0.125% Active Trials Sticky Trial Users 200 Converted from Trial 5. Recurring Revenue Recurring Revenue from previous month/year Net New Recurring Revenue per month/year 6. COCA & LTV Marketing & Sales Expenses / Total new clients Average monthly/yearly revenue per client * Lifetime of Client & Punchlime Confidential and Proprietary
- 9. Free Trial Anatomy. Best in class metrics based on 80/20 rule Early Days 10% 1. Active Trial Users 250 Optimization Opportunity! Active Trial Users Trial users most likely to buy. 20% 2. Casual Trial Users 500 250 Trial started Active Trial Users Nurture casual trial users to increase conversions. 70% 3. Accidental Signups 20K 500 Signed Up Trial started Likely to churn. Punchlime Confidential and Proprietary
- 10. Thank you. Image source: v3wall.com Punchlime Confidential and Proprietary