Olivier Truong

Notes: Jordan Gal on Acquiring Customers @ MicroConf

How to acquire customers for your SaaS with an efficient outbound sales process

  • Sometimes the person's you're talking to is not the decision maker. In those cases, Carthook sends out a 3-page PDF that explains why Carthook is useful for businesses. That PDF can be printed out/sent to the decision maker.
  • They never say "do you want to see a demo of our product"
  • They say: You are a magento store. We have a megento store customer, they made $3000/month last month using our software. Would you like to see how they did it.
  • Then the demo isn't: "let me show you my product", it's "let me show you how they did it"
  • The person is visualizing: "I want to make my money like this other guy"
  • Talking about efficiency
    • Research, Prospecting, Demo is all outsourced (finding emails and getting them to schedule a demo, then the actual demo)
    • Not outsourced: trial → paying customer
    • $3/hr for research (finding emails, outsourced to ODesk, Philipinnes)
      • 40 hours per week = $120
    • $6/hr for prospecting (emailing people to schedule a demo)
      • 40 hours per week = $240
    • $25/hr for demo
      • 2 hours per demo, 5 trials = $250
    • 10 demos → 50% convert to trial
    • 5 trials → 50% convert to paid
    • One week: $120 + $240 + $250 = $610/week
    • $99 ARPU (average revenue per user per month)
    • Monthly: $610 x 4 = $2440 = 20 free trials
    • 50% conversion rate: $244 CAC (cost to acquire customer)
      • 2.5 months payback ($244 CAC and $99 ARPU)
    • For every $2400 they spend, they add $1000MRR