CH 9 - Model 2 Software as a Service (D. Churn (Churn is the percentage of…
CH 9 - Model 2 Software as a Service
Revenue per customer
Customer acquisition cost
Uptime and reliability
B. Case Study: Backupify's Customer Lifecycle Learning
C. Measuring Engagement
Find your engagement pattern: daily use is ultimate metrics
Engagement pattern isn't just the metric like visit frequency. It's the usage pattern throughout your application.
Analyising data of engagement in two ways:
Segment the users and to find their engagement pattern.
A/B testing users with a new feature. If you can not do this, you can compare the users who came after the new feature and came before of it.
Churn is the percentage of people who abandon your service overtime.
You have both users(not paid) and customers(paid), and you should track churn for both groups separately.
In an always-connected world, 90 days is an eternity.
Lifetime value of a customer (The month average user stays x average monthly revenue per user)
Churn formula: Number of churns during period / customers at beginning of period.
Churn calculation can be very complex. There are two simple ways for it:
Measure churn by cohort.
Measure churn each day.
E. Visualizing the SaaS Business
The SaaS Customer Lifecycle p.98
F. Case Study: ClearFit Abandons Monthly Subscriptions for 10x Growth
A Saas Provider help small company find candidates and predict their success
Unique business model confuse their user
Different Payment method
Use the pricing/payment method that user feel comfortable with and fit how they budget/compare with other product
Everything, including Pricing and Payment method, make up the product you're offering
G. Wrinkles: Freemium, Tiers, and Other Pricing Models
Difference between different user group can complicate analysis
Different level of consumption
Affordable price may change over time
H. Key Takeaway