Recently revenue to one of my long time standing desktop apps experienced an out of nowhere, precipitous and scary drop in MRR.
I’m talking about 50% drop month on month. This is the 3rd month… ouch.
Its stressful when things seem to be doing smoothly one month and the next month 50% of your revenue disappears.
Although I don’t live a lavish lifestyle, the idea of having money rolling around buys me a lot of peace of mind.
With such a big drop, you feel like you are playing catch up!
- 1 Triage
- 2 DR ABC
- 3 Step #1 – Upsell customers
- 4 Step #2 – Other upsells
- 5 Step #3 – Start helping users on forums
- 6 Step #4 – Contact sites to review my product
- 7 Step #5 – Increase Trial -> Paid accounts
- 8 Step #6 – Find out why people are churning
- 9 Results
With such a quick and sudden drop, I was scrambling to even understand what was causing it.
Warning signs.. didn’t read the tea leaves right maybe?
With no data, and no information to extract data from, it did the only thing I knew how to.
I googled it.
This post turned up https://unicornfree.com/2013/help-my-saas-isnt-growing
I then asked HackerNews: https://news.ycombinator.com/item?id=11705612
SAAS first aid…
The post suggested->
- Earn more per customer.
- Get more customers.
- Keep more customers you already have.
Which for me means->
Earn more per customer
- Up-sell customers to my other products
- Investigate if I can create or add a paid add-on service to the current product
Get more customers
- Go through the entire sales funnel and make sure nothing is broken. Signups work etc.
- Start posting on community forums
- Start contacting more sites to review the product
- Convert more trial -> paid accounts
Keep more customers you already have
- Find out why customers are failing to renew their services and fix the problem.
- Send email to cancelled users asking why they cancelled.
- Send email to existing users and ask if they are happy.
- Email monthly/quarterly users and move them onto yearly plans
Step #1 – Upsell customers
I have product on the back burner which I am currently launching. I already have emails setup to promote product, but I review that and consider adding it on as a OTO.
Step #2 – Other upsells
Users of my main product need other tools to work with. I will contact those other products and see if they will accept to bundling their product with mine.
Eg, Buy product A and only today get my product for only $x.xx extra!
Step #3 – Start helping users on forums
My product grew initially entirely out of word of mouth and opening only BSTs on forums. I will go back and start offering value to users and leaving my sig links where I can!
Step #4 – Contact sites to review my product
There are undoubtedly a lot of sites out there that would be interested in reviewing my product, time to Google and work the list.
Step #5 – Increase Trial -> Paid accounts
Create lifecycle emails for each day of the 5 day trial period to teach users how to use the product.
Step #6 – Find out why people are churning
A 2 part step, first half is reactive (contact cancellations) the other is pro-active (stop new users churning)
I emailed all customers *incorrectly* that their plans had lapsed. But it was an interesting opportunity, users would ask me to double check the status of their accounts which meant I could ask them also if they was happy with their service.
Email cancelled customers
Although I do have an exit form asking why people un-installed the feedback was not actionable. “too expensive” or “too hard to use”. The selection “other” was never even selected.
Emailing customers directly had a much better response than the exit form.
Emailed current customers and asked how I could help