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bl u lite SMB/ENTERPRISE – SAAS ON THE CLOUD

Blume SaaS event in 2012

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

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Page 1: Blume SaaS event in 2012

blu l i te

SMB/ENTERPRISE – SAAS ON THE CLOUD

Page 2: Blume SaaS event in 2012

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

Page 3: Blume SaaS event in 2012

PANELISTS

Page 4: Blume SaaS event in 2012

ONLINE MARKETING

Page 5: Blume SaaS event in 2012

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

Page 6: Blume SaaS event in 2012

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

Page 7: Blume SaaS event in 2012

SALESFORCE SUBSCRIBER BASE

2001 2002 2003 2004 2005 2006 2007 20080

200

400

600

800

1000

1200

1400

1600

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0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Paying Subscribers Subscribers Growth of subsribers

Custo

mers

'000

Page 8: Blume SaaS event in 2012

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

Page 9: Blume SaaS event in 2012

PRICING

Page 10: Blume SaaS event in 2012

PRICING EXAMPLES

Page 11: Blume SaaS event in 2012

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

Page 12: Blume SaaS event in 2012

SOME EXAPMPLES

Free

miu

mBas

ic

Sim

ple

Plus

Prem

ium

Ente

rpris

e -

100

200

300

400

500

-0.5

-0.4

-0.3

-0.2

-0.1

0

Price per test % reduction in price/test

Pri

ce/t

est

% r

educti

on

Free Photos/Docs

High Res Photos

Videos -

1

2

3

4

5

6

0%10%20%30%40%50%60%70%80%90%100%

Price per GB % reduction in price/GB

Pri

ce /

GB

% r

educti

on

Page 13: Blume SaaS event in 2012

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:

Page 14: Blume SaaS event in 2012

PANELIST PRICING

Basic Silver Gold0.0

0.5

1.0

1.5

2.0

2.5

0%10%20%30%40%50%60%70%80%

Price per missed call% reduction in price/missed call

Pri

ce /

mis

sed c

all

% r

educti

on

Basic Silver Gold0.0

50.0100.0150.0200.0250.0300.0350.0400.0

-80%-70%-60%-50%-40%-30%-20%-10%0%

price/section% reduction in price/sectionpagesl

Pri

ce /

secti

on

% r

educti

on

Robust Advanced Enterprise Ready

0

400

800

1200

1600

-20%

-15%

-10%

-5%

0%

Price for features% reduction in price/features call

Pri

ce /

featu

res

% r

educti

on

Robust Advanced Enterprise Ready

-

2.0

4.0

6.0

8.0

10.0

12.0

-30%

-25%

-20%

-15%

-10%

-5%

0%

Price per transaction% reduction in price/features call

Pri

ce /

transacti

on

% r

educti

on

Page 15: Blume SaaS event in 2012

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

Page 16: Blume SaaS event in 2012

PANELIST PRICING

Series10%

20%

40%

60%

80%

100%

120%

140%

160%

180%

reduction in price/CPU - 12mreduction in price/CPU - 6mreduction in price/CPU - 3mreduction in price/CPU - 1m

Pri

ce /

secti

on

Robust Advanced Enterprise Ready

0102030405060708090

-100%

-80%

-60%

-40%

-20%

0%

Price per survey % reduction in price/survey call

Pri

ce /

surv

ey

% r

educti

on

Page 17: Blume SaaS event in 2012

INSIDER SALES

Page 18: Blume SaaS event in 2012

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

Page 19: Blume SaaS event in 2012

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

Page 20: Blume SaaS event in 2012

TECHNOLOGY

• Sales (Zoho/Salesforce/SugarCRM/Pipedrive)• Bug Tracking

(CodebaseHG/Redmine/unfuddle/recurbe/Bitbucket/Jango/DataRPM)• Support: Desk.com, Supportbee, myhive,

freshdesk, • Project Mangament: Asana, Treilo

Page 21: Blume SaaS event in 2012

OTHER

• Company Structure• Content Marketing• Web marketing• Online Sales• Customer Support

• Incorporation• Invoicing• US/Singapore/India – patent/subsidiary

• Optimum Funding• Angels/VCs• Runway

Page 22: Blume SaaS event in 2012

BLUME BANGALORE & EXPANDING