At Trak.io, we’re extremely passionate and confident of our purpose as a startup. We know what we want to do in this industry: we want to make other SaaS companies more successful.
But the exact way that we execute that purpose has been a very fluid process since we started work on our very first prototype in May 2013. Like many Lean Startups, our product needs to be able to adapt and evolve as we search for our own product-market fit.
And that means getting constant feedback from customers and potential customers.
“Would you sign up for this? Would you use that every day? Would you pay for this?”
You can ask potential customers these sorts of questions in interviews all day long, but the ultimate validator comes when they’re actually faced with that credit card form.
As the saying goes, “Pay up or shut up”.
We’d already validated our original purpose with a $29 Beta queue jump and $499 “Launch Partner” deal. But our product had changed considerably in the last few months, both in target customer and price point, and in some cases we were asking users to pay upwards of $299 per month.
Now here’s the honest truth: since we launched our public Beta, users were getting to the end of their free trial (after installing our tracking code) and then….. nothing. They weren’t paying. Our conversion rate sucked!
Something had gone wrong. Had we misunderstood our customer conversations? Had we been arrogant to assume these companies would actually ditch their existing customer analytics and put their faith in us? All of our feedback in emails and conversations had been great, everyone had told us they loved the product!
We were spinning and didn’t know what was wrong.
We needed to get very specific feedback. We already knew people were using the product from our own data tracking. But asking “Would you pay for this?” hadn’t translated into conversions. We needed to ask a different question to a different segment of our users.
“Why did you not pay, after using the product successfully during your free trial?”
This post is an explanation of how we segmented our onboarding users, and then how we implemented a super simple, very scaleable tactic to filter out our most engaged users and find out why they weren’t ready to start a paid subscription.
By the end of this process, we were receiving 27% more feedback, and increased our paid conversion rate by 33%!