Now that we’re certain the world hasn’t ended…happy holidays from Totango! It’s been quite a year for us. We finally came out from beta towards the end of January and in September, Forbes reported on our amazing growth: 100 customers and 10 million users in just nine months!
This is what we learned in 2012:
The user era is really happening.
Unfortunately, most software companies are not ready.
Software is changing the world and the world of software is changing:
- 61% of SaaS companies have a try before you buy model (free trial, freemium)
- 44% of software companies (and growing) have land and expand business models
- 61% of software revenues comes from existing customers
- 68% of SaaS executives are unhappy with their current “customer acquisition focused” metrics
Where software companies are falling behind:
- 70% have no idea what users do during the free use period
- For most companies free-trial-to-paid-user conversion is less than 15%
- 50% of paying SaaS users are not using the product they paid for (a $750 billion loss in value)
- Only 21% of the marketing budget goes to existing customer marketing
- 57% of SaaS companies will implement more “customer centric” measures in 2013
What can you do? Customer Journey Mapping will be the next big strategy that online and SaaS businesses are going to adopt to understand and effectively optimize customer interactions. Maybe you’ve already noticed the new tagging and triggering features on the latest version of our platform. Now you can trigger the right action for the right customer at the right time.
- Companies with a try before you buy, high-velocity sales model have a valuation up to 20x greater
- Customer centric companies have per customer growth rates that are 20x greater
- Personalized marketing campaigns are 4x more effective and yield in 40% more revenues
We interviewed industry Customer Success leaders
Interview series with Amy Friedman, Customer Success Profession
Customer Success Forum Part 1: Customer Success Heroes and Tools
Customer Success Forum Part 2: Customer Success Metrics and Performance
Customer Success in Baseball, Universities and Hardware Companies
Customer Success Chronicles: At Eloqua, customers are customers for life
Customer Success Chronicles: Clarizen Brings The Customer’s Voice to the Executive Level
Customer Success Chronicles: Enterasys empowers every touchpoint with the opportunity to delight and deliver value
We hosted a number of webinars
Customer Journey Mapping (KJR Associates)
Customer Engagement Plays Proven To Boost Customer Success Results (BlueJeans Network, Clarizen)
Customer Growth Lessons for Software and Internet companies (Aberdeen Group)
The Customer-Adaptive Enterprise (OVUM)
6 surefire tips to retain and grow customers (Zendesk)
As the year end nears, why not get a free “Revenue at Risk” assessment for your company? See what you could be doing differently to improve your current engagement strategies, just in time for your New Year’s Resolutions.
Have a happy new year!