Here's the 80/20 of conversion optimization for SaaS. Most of these tweaks tend to work regardless of the product or the niche so in this lesson, I'll tell you exactly what to tweak, why it works, a few results to back this up and (most importantly) how you can model this with your own SaaS business.
Pedro Cortés:
Hey, guys, welcome to another presentation. In this one, I'm going to show you the top five tweaks to double your conversions and even double your revenue. I'm going to briefly outline every single one of them and try to give you as many results and as many numbers as possible so we can take action on this presentation. It's not just going to be a bunch of theory.
Pedro Cortés:
In this case study, basically the principles that we're going to be covering are going to be around explaining your product on your website, so you're going to get the best conversions possible. Because right now, probably your visitors don't really understand what the product does, how it can help them, and why is it better than everything else on the market. If they don't really understand the full value of your product, then we're probably not converting nearly as enough people as we could be converting otherwise.
Pedro Cortés:
By the end of the case study, you're going to understand what do you need to do to get this type of reaction from your visitors. The type of reaction where they're going to say, "Oh my God, this is exactly what I was looking for." And really they just want to see how they can sign up. They get the a-ha moments, that previously they only get in a free trial or in a demo or after the actually try the product.
Pedro Cortés:
Let's jump right into it. Basically what I'm doing just to give a quick introduction for myself is basically, this is all I do for clients. I'm a SaaS marketing and messaging consultant. I help SaaS companies explain their products on their website the best way possible, so more people see the value and that's what really increases the conversions and bumps up their revenue.
Pedro Cortés:
I'm going to show you as many examples as possible with the split test that I've done so you know that this actually works. Here's what you'll learn in this presentation. One is we're going to identify your low hanging fruit opportunities based on these top five tweaks. I'll tell you what are the top five tweaks and you can identify which ones might be easier for you to apply. Then I'm going to be sharing actual numbers and results for each of them, either from client results that I got, split tests that I've done, or just numbers that I know just from being in the industry. Then I'm going to help you understand exactly what's wrong with each of the quote, unquote, best practices that SaaS companies do, what to do instead, what's the right way to do things and the right way to make these tweaks and how you can apply it to your company. It's basically going to be as actionable as possible.
Pedro Cortés:
By the end of the presentation, I'll promise that out of the five tweaks that I'm going to be presenting, you'll have at least two, if not all of them, that you can go ahead and test and improve, which could probably translate into, at the very least, thousands in extra MRR. And most likely, probably in the tens of thousands in extra MRR, depending on how big is your company.
Pedro Cortés:
Let's jump right into it. The tweak number one, and this is one that is obvious, but most SaaS companies, they don't really tweak it right, so they don't squeeze as many conversions as they could from their landing page. Here's exactly what they do wrong. Then wait until I'm going to tell you what you need to do instead.
Pedro Cortés:
What most SaaS companies do is they have this really vague value proposition at the top of the page and really throughout the entire page. They have something like this, like front is displaying, where they have a smart headline that is really not smart at all, and then people really don't understand what it is and doesn't really drive that curiosity to scroll down and learn more. Then they end up selling on a lot of features instead of selling on the results. They talk about all of these features that they have. We don't really see how they work together and we're not really going to see why is this better than what we're currently using or other things that we're exploring in terms of other solutions out there are on the market.
Pedro Cortés:
What ends up happening is you'll scroll to the end of the page, if you do get there, you don't really understand what's what are the unique selling points. You don't really understand how we can help you, then you're not going to convert. That's the experience that a potential customer that is currently on your website might be having. And if they do, for every single objection or question or misconception that they have about your product is just money that you're throwing down the line, because you're not really converting them.
Pedro Cortés:
Here's what to do instead. This is the purpose of every single landing page. It needs to answer these three questions. One is how can I use this product to fix my problems and get the desired result that I want? That's number one. How can I get use this product to get the result that I want, which is usually translatable to saving time, saving money, or making more money or making stuff more efficient or automating things, that type of thing.
Pedro Cortés:
Then you need to understand why is this better than the current solution? Imagine you were an internet service provider, and you're offering way better internet. It was way faster. It wouldn't go down as much. It was more reliable. But then no one would really buy because the setup time would take a month and they would have to pay cancellation fees to their current contractor, to their current ISP, to basically close the contract and be able to become your customer. Even though you would have way better internet because of the commitments, people wouldn't really take the offer. So we need to convince people that your product is way better if you want to get rid of that initial resistance of switching products or changing their process in some way, because people are always resistant to change, so we need to explain this really well.
Pedro Cortés:
Then finally is why is this better than anything else on the market? Because let's face it, even if you're a leader in your market, people are always going to compare. So what we need to explain on the website is that this is going to be the best solution for them. For whatever reason, this is the best solution for them. It needs to feel like this tool was built for their use case. These are the three things that we need to answer. And for everyone that you don't answer, you're basically losing out on a ton of money and a ton of conversions.
Pedro Cortés:
Here's what to do instead. Basically what you need to do, in terms of the structure of the page, is you need to have four things. One is you need to show results as soon as possible, so people really understand what you're tool is capable of, and you're not really masking what your tool does to just sell it right away. Then you remind them of the problem, so they know how much this is costing them and all that stuff. Then you explain how it works in a step-by-step format, so they understand how each of these features go together in order to get that result that you are promising instead of just talking about features randomly. Then finally is you reverse the risk. This is something that you do as you're explaining the product. That's why we have two number threes over here. I'll go over that in a second.
Pedro Cortés:
For example, this company they're saying who else wants to recover 21% of their abandoned carts? Usually email converts at around 5%, so what this does is it's showing them ways to get four times more money out of your abandoned carts. This is basically to target e-commerce companies. What that really does is that really creates curiosity in terms of how the hell can they make that happen? Let me sign up, let me give it a try. That's what the top of the page needs to do. Same thing for this other client that I have where he sells a tool for YouTube ads, where you can just have better research tools. We said exactly what the tool does right from the top. We're saying uncover YouTube placements and keywords no one else is using. What that does is people really figure out if I have a better tool, I find better keywords, better placements then I'm going to be able to have a more profitable campaigns, which means more money for me and it makes it easier to just call my company.
Pedro Cortés:
That's exactly what they're looking for. We really just justify that and create as much curiosity as possible to give it a try, because that's what they want. They don't want another tool. They just wants to find the keywords in the placements that no one else is using so they can make more money, have less competition. Same thing with Baremetrics Recover, which is a tool that helps you recover money from failed payments. Basically, we said right away that around 90% of your MRR is at risk of loss because of failed payments. What are you doing about it? So immediately that does that if I make 30 grand a month, that means I'm losing at least $3,000 due to failed payments, so this is a bigger problem than I thought. Let's see how they can fix it. That really drives that curiosity to keep scrolling down.
Pedro Cortés:
When they do have that curiosity to scroll down, then we back up that claim that we make at the top by showing them a step-by-step process on how they go from setting up their tool to getting the desired results. It could be between three to five steps. We explain them exactly what to do. In this case, step one would be to enable recover in their Baremetric dashboard, because this is an add-on. It's not really a standalone product. I think this is going to be a standalone product soon. Then you set up automated drip campaigns that are going to send all the reminders before the credit card expires. Then they can set up a paywall, and then you can set up a customizable field where they could update their details, credit card details, so it keeps billing properly. They can do everything in one tool, in the same tool. It's fully customizable.
Pedro Cortés:
Basically, they know everything that they need in order to understand this is something that is going to fix my problem in a second, and I'm going to be able to recover that 9% of MRR that I'm losing every month. It's both a really big problem, a really good result that they could be getting, and it seems like it's easy to fix. That's the whole purpose of this section, making it seem like it's easy to fix.
Pedro Cortés:
Then what we want to do is we want to reverse the risk. There are several ways of doing that. One, we can back it up with social proof, like Baremetrics Recovery is doing here. We basically show money that other people were making by using Baremetrics Recovery. We literally had a screenshot of someone making $20,000 with this tool. That's really good. $20,000 that they wouldn't make at all if they didn't have it. We showed a couple more testimonials. Then there's this other way of reversing the risk, which could be just showing the normal ways that you would reverse the risk, but you wouldn't really say it out loud on a landing page. In this case, they have a policy where if you didn't make any money with Baremetrics Recover, you would get them all free. Essentially you wouldn't pay for it, so essentially it's risk-free plus the free trial that they have. This is something that they did here and we basically turned it into an irresistible offer.
Pedro Cortés:
The most common way of doing this is just at the end of the page, when really people understood the full value of your product and you just need to remind them that there isn't any risk, then you just show whatever risk reversals you have. Maybe it's about being really easy to set up. Maybe it's about having a free trial. Maybe it's about having a free plan. Maybe it's about having a money back guarantee. Whatever you offer, you make sure that you have it outlined there, so you remind them that not only is the product really good, but I'm going to be able to try it risk-free right. That is just a quick reminder because every time people think about having a commitment, they get scared off even if they think it's really good. We just need to remind them that there's no risk just to really squeeze as many conversions as possible.
Pedro Cortés:
I know this might be simple and it might seem like a simple structure, might seem like the structure is always the same, which it is, that's what makes it really predictable. Here are some of the results from applying these strategies. One, we have this company that wasn't really getting any demos from Facebook ads at the time, but once we do focus 100% on selling the results that their tool provided, they started getting five demo requests a day and they were hitting the maximum amount of calls that they could have a day essentially. They went from not really having demos at all with the same ad budget to get booked out with demos. That's really the difference because people would look at their page and their product and would say, "I already have this." Instead of just selling that parts of this gets way better results. Even though it seems similar, it gets way better results so we sold the results instead of selling the product. It makes a big difference.
Pedro Cortés:
Then we have this 40% increase in MRR in 30 days just by improving the messaging and positioning. Basically what we did is we doubled down on one niche. We covered all of the things that would make the tool unique and seem like it was built specifically for that niche. Then people would look at the tool and think, "This is built for me. This is a cold email tool that is built for a cold emailing agency. I can white label the tool. I can do everything I want." Basically it got rid of the competition and it was just way easier to sell. This product was exactly the same. We just repositioned it and tweaked the messaging exactly like we showed here.
Pedro Cortés:
Then we have this other one from Baremetrics Recover where they previously weren't doing demos. To actually sell a product, they were contacting current Baremetrics customers to sell this as an add-on. Now they don't even sell this with demos at all. People just find it by themselves and then they choose to upgrade or not. This led to, more or less, a 35% increase in exponential revenue, which is pretty significant at the time.
Pedro Cortés:
Tweak number two is the pricing page. This one is not really obvious at all. People just think it's just another page. This is exactly what most SaaS companies do is just they look at a pricing page just as another page that is really not significant. When actually it is really important, because this is actually one of the last steps that people take before signing up. Yes, they might click on the pricing way before they sign up just to check what the pricing is and maybe compare it with other tools that they see, but this is one of the last things that they do. This is where they actually go from a free trial to selecting which plan they want to choose. That type of thing. It's really important they understand the price. Then more importantly, they understand the value that they're getting for that price.
Pedro Cortés:
What most companies do is they ignore it. They don't really anchor the price at the top. They don't compare the value the product is providing to how much it costs, so it always seems expensive. Then they load them with features, so I can't really understand which plan is right for me, which not only it seems expensive, but now I don't know which plan to select, which can lead to just losing a lot of potential customers that just get confused, even at the last step before signing up.
Pedro Cortés:
Here's what we need to do. Number one is you need to anchor the price. You need to compare the value of the product to how much it costs before you even show the price. Here's an example from one of my clients, which has a way to display gravity forms on your website, which is just a plugin that a lot of people use, hundreds of thousands of people use. Basically, we're saying it shouldn't cost thousands or hundreds of hours to display this form entries because the other ways people would do this is they would either waste a ton of time copying and pasting things or they would hire a developer to build this, which would cost at least two or $3,000. They would have that anchor in their mind before looking at the price. So anything that was low below $1,000 or whatever they thought 100 hours worth of their time was, then it seemed like a really good deal.
Pedro Cortés:
Then we need to have... These are just a few more examples. For example, this project management tool for agencies would set a small price to pay to cut days and weeks from every single client project. That really reminds them, "This is going to save you a bunch of time, so whatever your costs, you're going to just save it in time that you can use to get more clients essentially." It really makes it a no brainer. Same thing with this other client that is an email marketing tool that actually doesn't increase the price as their list grows. We basically compare it to all these other programs that would start charging your thousands a year as your list grows, and then you would show ours is just going to stay flat and you're going to save thousands over time, which actually, even though that was true, it wasn't in the previous pricing page, so you made a big difference.
Pedro Cortés:
What you need to do next is you need to have a really clear distinction in between the plans. Even though people might really see the value of your product, or they might see that the plans are worth it, in terms of the value versus the price, they might not know which plan is for them, because usually SaaS companies, they just load everything with features and you need to compare all the time and not know which one is for you, if it has enough features. What do you need to do is you need to have a description and limit the list of features as much as possible. You want to say, if you are this type of person, or if you have this type of company, this is the option for you. You need to have that clarity in order to create that description.
Pedro Cortés:
For example, the GravityView core is if you only want to display gravity form entries on your website, then this is for you. If you want to have all of our premium features, which includes displaying data in different ways, then this one is for you. If you just want this discount to sell this to other clients, then you just need this all access one so you can sell it to other clients. That type of stuff. So really, even though it has three plans, there're only three type of people that would choose this. If I was an agency, then I really would have only one plan. That's the important thing here is that I come into the pricing page and I know which plan is for me as soon as possible. There's no confusion and people just sign up instead of just being overwhelmed.
Pedro Cortés:
Then you want to address some objections and some unique selling points. In this case, we are addressing some objections around switching over and the learning curve of the product and everything. What we did is we had a case study of someone that switched over from Infusionsoft to Groundhogg in the case of this email marketing tool that I was showing you earlier. Also the learning curve, basically we said that we have free office hours and step-by-step courses that they can take at their own pace, so they can become a pro at the tool in one hour or so. That gets rid of the concerns, so people think that switching over is going to be easy instead of just assuming that it's going to be super complex. That's pretty much all you have to do.
Pedro Cortés:
Finally, you just need to have a call to action at the end so they're reminded, "I just need to select the plan now." If they're scrolling down and they're seeing all this stuff, then you just have a call to action say your next step is just to get a trial or your next step is just to select a plan or to book a demo or whatever you're offering out the moment, so they know what to do.
Pedro Cortés:
Here are some of the results from their pricing page. You're going to be blown away because this might seem really, really simple, but it can get you really good results. Because this is one of the last steps that people go through before signing up, you can actually see really good results here. Here's the result from one of my clients that they got a 40% increase in revenue, which basically in the split test it said it was a four extra dollars per session, so four extra dollars for everyone that would come in. That equated to a 40% increase in revenue just by improving their pricing page, so people knew exactly which plan to select, and they wouldn't be confused and probably would just try something else from the competitors.
Pedro Cortés:
Here's another one which led to an 80% increase in revenue from the pricing page, for revenue from the pricing page. We did a split test on this with Google Optimize link, just like the other one. What happened to here is we got 40% more people to sign up because they weren't confused anymore. They knew exactly which plan is for them, and they knew that they going to be saving money. So actually more people took action and it's because they felt like they were saving money, then they ended up going for higher plans, which equated to even though we only got a 40% boost in terms of how many people signed up, they signed up for higher plans so that's what led to an 80% increase because they were just making more money per customer. This is how powerful pricing pages are if you're doing them properly.
Pedro Cortés:
Moving on to one of my favorite tweaks, which is tweaking your blog and tweaking your content so you get as many leads as possible. Because let's face it, a lot of companies nowadays, they're getting a lot of leads from content that is going to become increasingly competitive. We want to make sure that you're going to get as many leads into as many customers from your blog as possible. Because whether you realize it or not, if you're getting a lot of traffic from SEO and from content marketing in everything, your article is going to be their landing page. It's not going to be the homepage. It's going to be their landing page, or the first impression that they might have about your company is actually going to be a blog article.
Pedro Cortés:
What we need to do, and this is unlike most SaaS companies do, is we need to create a bridge, and we need to create a transition between going from just a reader, someone that reads your content and finds it useful, to becoming a lead or becoming a customer by knowing exactly what you offer and how you fix the problems that you're talking about. Most sales companies don't have this transition. They don't really have proper call to actions on their blog, and sometimes they post irrelevant content. They post content about stuff that they don't really fix. They talk about problems that their product doesn't really fix, so they get traffic, but they get totally irrelevant traffic, which is sometimes the case, but it's still fixable.
Pedro Cortés:
What do you need to do instead is one, you need to offer a proper lead magnet. What I mean by that it's not going to be a white paper or something that is about a problem that you don't fix or about the trends of the market or anything like that. That's going to get a lot of signups but it's not going to get you qualified leads. What do you need to do instead is you need to offer a lead magnet that is directly related to what you offer.
Pedro Cortés:
For example, Expandi here, was offering lead magnets that would give strategy instead of scripts to send out LinkedIn messages. Because they offer a LinkedIn automation tool, then it's going to be the perfect fit because they're giving out the scripts that work. Then in order to send out those messages, they need their tool. So it's a perfect fit. It's not like we're talking about the marketing trends for 2021, and it has anything to do with LinkedIn, and it's going to attract all sorts of random leads. No, this is super laser focused. Then what we need to do is immediately need to build our bridge between going from a reader into a lead. What happens after they sign up is they get this thank you page that says, "The guide is going to be arriving in a second. Just check your inbox in five minutes."
Pedro Cortés:
Here's how to get the most value out of these top three strategies. Basically, what we say is that in order to send out these messages, the safest way to do that is to use Expandi and to get a trial below. You can get these messages, copy and paste them and start executing on the strategies and getting leads even during the trial period. That's basically what we said and because there's the perfect fit, then we start getting trials from this and it works really, really well.
Pedro Cortés:
Finally, what you need to do is you just need to promote these call to actions on your blog. Maybe it's a call to action about downloading the lead magnets just like the one from Expandi, which is spot on. Maybe it's a lead magnet like this, which is similar to what Expandi is doing. Because close.com is doing a really good job, this is an example from close.com as well. Sometimes it might be a call to action to just get a free trial right away. So do you want a product that does X thing, or are you looking for this type of tool or this type of product, why don't you give our product a free trial, that kind of thing. That also works well. That's what you want to do. You want to just promote this on your blog, and if people like your content then it's going to be a natural next step for them to either get that trial or get that content upgrade and that type of stuff.
Pedro Cortés:
In terms of results from applying to strategies, this is something that it's hard for me to reveal numbers. One, because some of these things are hard to test and two, this is the main thing, is some of my clients use this as their main lead generation strategy, so I can't really show all of these numbers because it would give away their business really. This is how powerful this is. This is actually how I grow my own businesses just by posting content out there and just having this perfect lead magnets and just people book a call. That's exactly how it works with me and it works really well for SaaS companies as well. This is what I've been experienced as well.
Pedro Cortés:
Moving on to tweak number four, which are the comparison pages, which is actually powerful depending on the niche that you're in. If you're in the type of niche that people search for different tools or they are on a capture a lot and comparing tools, it might be a little competitive, but sometimes if there's a lot of demands, then we might be able to get some customers from some traffic out of this. For example, the CRM space is really competitive, and you're probably going to get traffic out of this. Also the help desk market and the HR software market is probably something that we can pull this off as well. It just depends really on the market and how competitive it is. It's just something that you need to test out.
Pedro Cortés:
What most SaaS companies do is they have these comparison pages that they rank on Google or they rank on Capterra or they use Google ads with, and what happens is they just have really unfair comparisons. They just say that their product is way better. Their product has all the check marks, everything that you need and the other product doesn't have any of the features that they're talking about, which is really just BS and people can see through that. What ends up happening is instead of looking at your product as the best tool, they just not trust you as much, and then they just leave.
Pedro Cortés:
Number two is they don't really double down on their USPs. They don't make it clear what is the distinction between their product and everyone else. It's probably because it's not really clear in their minds, so he's not going to be clear in their marketing. This is something that I see all the time. Here's what you need to do instead.
Pedro Cortés:
Here's an example from Demio, which does this really well. Number one is you need to create trust by creating fair comparisons, just like Demio is doing here. Demio has a very similar feature set compared to GoToWebinar. They're not going to say that GoToWebinar unlocks all these features. They're simply going to say that Demio you're able to join the webinar in the browser and with GoToWebinar the attendees will have to download a web client that they would need to join the webinar, which creates a lot of resistance. That alone not only creates the distinction, but also creates trust because it's not an unfair comparison.
Pedro Cortés:
This is exactly what number two is all about is just knowing your USPs and doubling down on what it is. What Demio's doing here is we're saying we're actually a webinar tool. We do the exact same things, our feature set is very similar, but we just have better UX and you're able to join through the web browser. That's all they say. They don't say they're necessarily better. They just let you choose. If you want people to join through the browser and if you want this type of user experience, this is the tool to choose. That's the perfect way to execute on these comparison pages.
Pedro Cortés:
Here's exactly what they do. The main distinction is joining through the web browser. Then they have this really cool one where they say, "Which design is a better reflection of your brand?" So they show GoToWebinar, which is really outdated, then they show their interface, which is really clean and really up-to-date and looks super modern. They don't really say that theirs better. They'll let you choose, which is way more powerful. And they keep going. They say that there's no resistance for attendees, that you can join through the browser, that it's really easy to use. They show a few features and how clean it is and how easy it is for people to join, all that stuff. That's what they're doubling down on because they know that they are better at it. They let people realize it by themselves, which is 10 times more powerful.
Pedro Cortés:
Here are a few results from applying these strategies with the comparison pages. Here are the results that you can expect. Number one is you can get free qualified leads from SEO. If this is something that you can rank for, then you can get some of these from SEO. For example, Mailchimp alternatives. This is something that people actually search for. And even though you might be competitive, depending on your domain score, you might be able to rank for it. Or you might be able to rank for some other companies that people don't search for a lot but they still search for it and can still get leads out of it. One, you could get free qualified leads from SEO because these pages can rank for this type of stuff.
Pedro Cortés:
You can get cheaper paid conversions from websites like Capterra and G2Crowd or even Google ads, because the better it converts or the bigger the distinction between your tool and someone else's, the easier it is for people to figure out which tool is best for them in sites like Capterra, G2Crowd, or even Google ads, because they see there's a really clear distinction. Then it seems like this tool is for me, then there's just more likely to convert. The more conversions you get per visitor, then it just means it's going to be cheaper to acquire a customer, because usually it's hard to make it profitable in these type of markets.
Pedro Cortés:
The best one is you're going to get less hesitation from visitors you already get. Even if you don't rank for these things or you're not getting any traffic to the comparison pages, which is the case with some of my clients, they would still get benefits from having them because there are some people that look at their website and then they scroll down and try to compare with a tool that they already use, and they try to compare and see if it's worth making the switch. What that does is those people that were a little bit extra skeptical, they saw the comparison, they thought. "This is way better than what I'm using." Then they converted just because of that comparison page. This is just something to keep in mind. It can still get you really good results depending on the market you're in and if it's really competitive.
Pedro Cortés:
Tweak number five, which is one that I really like as well, is revenue expansion. There's a bunch of ways of doing this. I'm just going to show you a couple of examples. What most SaaS companies do is one, they have several plans and they don't really try to upsell anyone. They have all these different plans, but if someone stays with a starter plan, they don't try to upgrade them to the business plan or whatever the plans are called. If someone is in the cheapest plan, they don't try to upsell them. That would be their low hanging fruits and easier way to make more money.
Pedro Cortés:
Number two is they don't really create overlapping add-ons. They don't really create more features or add-ons that people can use with their tool so that it can replace some other tools that they were paying for it. Let's say you have an app that is a to-do list, then you add an add-on where you can create notes. What that could do is people could stop paying for the notes app that they're using, so they can use everything in one app, then you're the one that makes all the money. That type of example. I'll show you a couple more in a second.
Pedro Cortés:
Finally, they don't really tweak their pricing or their offer or how really they package up their plans so they could make more money without really getting more resistance or less sales and stuff like that. I'll show you how to do that in a second. What do you need to do is one, is you need to package up your plans. We need to find other ways to make it seem like a much higher price is still really valuable, so we mix up the value with onboarding calls or free templates, or maybe a free course in there, which some companies do, like Clickfunnel and Market Hero and stuff like that. I'll show you a couple of examples in a second as well.
Pedro Cortés:
Then you want to try to maximize your revenue per customer. Instead of focusing on getting as many customers as possible in the door, you just want to focus on getting as much revenue per customer as possible, then you can use that money to spend on marketing. That's how you really scale because the more money you make per customer, the more you can afford to just spend our marketing in order to acquire more customers and just makes the whole cycle easier. Then what you want to do is you want to help more users. You want to help the power users.
Pedro Cortés:
Basically what that means is if you have someone that uses your product a lot, and they have, for example, if you have an email verifier where they only get 1000 credits and they need more credits, and they're constantly buying additional credits at $50 a month or something like that, why don't you create a plan where they can buy $10,000 a year or something that they can get unlimited credits. This is something that a lot of people would pay for depending on the tool that you offer. That really creates a huge posting revenue for you.
Pedro Cortés:
Here are a few examples and results, because this is more about... It really depends on the type of company, so I'm going to show you a few examples so it's easy to grasp on. One is Baremetrics, which I think is doing really, really well. Because they have actually something on their website called open startups, where you can actually see their numbers, I'm going to show you how much money they're making out of these add-ons. Just give you a quick overview. You can go and check their website if you want to see more.
Pedro Cortés:
They have at least these two add-ons that they're selling. One is Recover, which is the one that I was talking about. You get to see, not lose money from failed payments. Then there's Cancellation Insights, so there's a way that you can add a cancellation flow without any custom code so you can learn why people cancel and try to avoid that in the first place. If you look at their dashboard, this is the stuff that they have publicly, in the last 30 days, they got 20 customers, which means they added $1,500 in MRR, but they got 257 expansions.
Pedro Cortés:
Basically what that means is customers that were maybe on the base plan, they started paying more because maybe they grew or they moved to a higher plan, or they got one of those two add-ons, either Recover or Cancellation Insights. If you really take a look, the revenue that they got from expansions is $17,000, which is actually 11 times the MRR that they added in the last 30 days. This is how powerful it is. It just requires a little bit of thought in terms of how you're going to do this and how you're going to package up these plans.
Pedro Cortés:
Showing you an example from one of my clients as well is they had this tool at $99 a month. It was turning a little bit because people were traveling quite a lot actually, because they really didn't understand how to use it over time. Basically what they do is they would pay for two or three months, they would move on to something else, and then the company would just lose the customer. What we started doing is we created an annual plan where they could get some coaching calls which were basically some really easy to deliver onboarding, which is cheap to do.
Pedro Cortés:
What that did is it helped people to pay up front and by paying upfront, you would get all the money up front, which is good for cashflow, and you wouldn't get them to turn on a monthly basis, because they paid for a whole year upfront. Plus you would end up instead of making two or $300 per customer, which eventually would turn away after two or three months, you could make between three to 10 times more because we even have a backend offer that is even more expensive. It is in the $3,000 range. This is how profitable this is if you just do it properly and you know how to package these plans.
Pedro Cortés:
Even though we only covered five tweaks, there are many, many more tweaks that you can do depending on your company or on your market in just the low hanging fruit that you have. Here are a couple more examples. One, you can tweak your free trial and demo pages, because if this is your goal at the moment before even transitioning to product led growth approach, as you're transitioning, this is something that you can still do. Because if you're getting all of these free trials and you're getting all of these demos, there's a chance that if you explain better the value or what's going to happen next on those pages, then you can squeeze even more demos, even more trials out of those pages.
Pedro Cortés:
Another one is you can improve your onboarding, which is obvious. The more people that activate, the more likely they're going to stay or go from a free to a paid customer. You can sell more annual plans like I showed you before. You can fix failed payments. You can add a cancellation flow. There's tons and tons of tweaks that you can be doing. What I urge you to do is just go and try one or two of these tweaks and let me know how it goes, because there's definitely at least two out of these five tweaks that you can use and go ahead and get really good results from. Thanks for watching. Hopefully you enjoyed this talk. Have an awesome day and enjoy executing on this, because I hope I made it as actionable as possible. Cheers.
