👋 🧑🚀 Hello SaaStronauts!
In this issue:
📈 How to Increase MRR Without New Users
🪦 The Silent Killer of Your SaaS Business
👁️ 5 Simple UX Tips That Instantly Make Your SaaS Better
🏆 #1 Skill for Any Startup
💿 Tips From the Founder of CD Baby
🚀 Let's blastoff!
📈 How to Increase MRR Without New Users
- Upsell with new pricing models. Examples: Per user pricing, or usage based pricing.
- Launch new features as add ons, rather than attaching them to your existing plans.
- Shut down your free plan, and many of your free users will likely pay.
- Get rid of any "unlimited" plans. Turn them into usage-based plans if you can, or split them into even higher tiers.
Our takeaways from "Baremetrics". Read this article.
🪦 The Silent Killer of Your SaaS Business
- Churn, the number of customer's you are losing in a certain amount of time, is often a lower priority to founders.
- However, not paying attention to churn can tank your SaaS without you even realizing it.
- You invest money into acquiring leads, only to waste it when your customers are leaving without you even knowing why.
- Leading causes of churn...
- 1. Not delivering on what you promise.
- 2. Customer signed up, but never started due to some kind of friction.
- 3. Bad experience (bugs, downtime, bad support, confusing UI, etc).
- Want to know why they left? Just ask! Conduct cancellation surveys, and/or ask your existing users what might make them leave in the future.
- Our takeaways from "Churn – the Silent Killer". Read this article.
👁️ 5 Simple UX Tips That Instantly Make Your SaaS Better
- "Affordances" are how a person can interact with your SaaS. Like buttons. Can the user make all appropriate actions without friction on your dashboard?
- "Signifiers" are hints at what is possible. Like icons or UI cues. Are your signifiers conveying what will actually happen when a user interacts with it? Or is your button text or icons misleading?
- "Mapping" is the relationship between two different things. Make sure you're grouping things appropriately where a user would expect it. Example: Is your mute button close to your volume slider?
- "Feedback" is what tells the user something is happening when they took an action. Are you displaying a loading indicator when something is clicked, or is the user confused when the screen just pauses after they click a button?
- "Conceptual models" are ideas a user has on how things should work based on their past experiences with similar products or things. Reduce friction by getting your UI close to other things your target audience might be familiar with. Don't reinvent the UI-wheel if you don't have to.
Our takeaways from "5 Key UX Design Principles". Read this article.
🏆 #1 Skill for Any Startup
💿 Tips From the Founder of CD Baby
- Don't do anything just for the money. Make great things happen for yourself and others, and money will come naturally.
- You won't know what you're doing until you start helping people and seeing results. Until then, your business plan is worthless.
- Excluding people is fine. You'll never make everyone happy anyway.
- Always be in a cycle of inventing and improving. Promoting what isn't working will only get you stuck.
- The best way to grow is to focus on the customers you already have. The better you serve them, the more people they will tell.
- The right way to run a business is to make yourself removable. No successful business is reliant on a single person.
Our takeaways from "Anything You Want" by Derek Sivers. Read this book.
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