Tag Archives | Conversion

The Truth Behind Recurring Revenue Growth in Subscription Economy

Goals for revenue growth change over the lifecycle of a company, in both magnitude and composition: Early stage startups want 100 percent growth or more. Late stage startups aim for 60 to 80 percent growth. Companies near the public offering stage are in the 40 percent range. For public companies, growth objectives start to fall below 20 percent. As companies mature, growth begins to blend new customer acquisition with existing customer upgrade and add-on sales—and for the best-performing companies, an increasing percentage of growth comes from existing customers, year over year. In fact, for these best-performing companies, our research shows a direct correlation between average customer lifetime and percentage growth contribution from existing customers. To better understand this dynamic, consider […]

Why Data Trumps Experience in Trial Conversions

Probably one of the biggest mistakes publishers can make on converting trials is relying on experience and intuition. The art of implementing and managing trials doesn’t match the science of new data-driven techniques. Using predictive analytics to qualify trial users and focus on those that are most likely to convert can double conversion rates. In a 2012 study, the Aberdeen Group published a finding that companies using predictive analytics have a 73% sales lift versus companies that did not. In a previous note on trials, loyalty was described as a good measure for predicting conversions. This post expands on the loyalty measure to demonstrate how to implement trials scoring that increases conversions. Trial users can be measured and scored any […]