Why your SaaS gets thousands of free trials but little payments
Thousands of free sign ups but very little payments?
Build a Product Improvement Engine.
Whenever I talk with SaaS founders going through this, I realize they are asking themselves the wrong question.
They keep wondering WHY things aren't working out.
If you reframe your "WHY?" to "How might we?", things will look different.
A few years ago I read this idea of product improvement engines on Sam Altman's Startup Playbook.
Find a way to build some kind of engine within your team to constantly improve the product.
To me, this is what it means today for a SaaS company:
1) Build a team that runs this engine on cycles with a clear timeframe and clear roles.
Let's say you're inspired by Shape Up (by 37Signals) and run 6 week cycles.
Every cycle, this team will do something to improve the product and, in this case, increase conversion rates.
2) Never ask "why", but "how might we?" and do it in a workshop setup.
Run a Lightning Decision Jam (by AJ&Smart) at the end of each cycle.
It will help you review things that went wrong. Reframe them. And ideate prioritized solutions for the next cycle.
3) Stay "on track"
Track absolutely everything, while keeping an experimentation mindset.
Run at least one A/B/N test on each cycle and learn.
Every few cycles, interview both paying and non paying users.
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I dive into how to build #conversion engines and custom #funnels for your #SaaS business.