SaaS Email Marketing - How to Convert and Retain Customers

Summary

Henry Purchas, founder of a SaaS business, shares his experiences and strategies in email marketing for his over one-year-old company. He discusses onboarding processes for trial and free users, strategies to reduce churn, and nurturing emails for different user stages. Henry emphasizes the importance of identifying 'aha' moments to retain users and candidly shares what has worked and what hasn't, providing a transparent look into his SaaS business's email marketing journey.

Takeaways

• 😀 Henry Purchas shares his experience with email marketing for his SaaS business, which he has been running for over a year.
• 🔧 He discusses strategies for nurturing leads through email, including for new sign-ups, cancellations, and abandoned carts.
• 📈 Henry emphasizes the importance of identifying the 'aha moment' in a SaaS product, which is the point at which users realize the product's value.
• 📊 He explains how to use Intercom to set up different email flows for onboarding, trial users, free users, and post-trial customers.
• ⏰ Timing is crucial in email marketing; Henry outlines when to send specific emails to maximize engagement and reduce churn.
• 🛠 He admits to turning off churn risk emails as they increased churn by reminding users they haven't been using the platform.
• 📝 Henry provides insights into crafting emails that guide users to the 'aha moment' and encourages them to explore key features.
• 📉 He acknowledges the need for constant testing and iteration, noting areas where his open and click-through rates are low and require improvement.
• 💡 The video serves as a raw, transparent look into the email marketing strategies of a live SaaS business with over 4,000 users.
• 🗓 Henry also covers post-cancellation strategies, including asking for feedback and offering extended trials to win back customers.

Q & A

What was Henry Purchas unsure about when he started his SAS business?

Henry Purchas was unsure about email marketing nurturing, particularly how to email people who were signing up for his SAS business, those who were cancelling, and those with abandoned carts.

What is an 'aha moment' in the context of SAS products?

An 'aha moment' is the point when a user of a SAS product realizes that the product is exactly what they have been looking for, often leading to them becoming a long-term user or paying customer.

How does Henry approach onboarding for trial and free users in his SAS business?

Henry uses a similar approach for onboarding both trial and free users, focusing on getting them to the 'aha moment' as quickly as possible. He uses emails, posts, and banners to provide tutorials and guide them through the product.

Why did Henry decide to turn off the churn risk emails in his SAS business?

Henry found that churn risk emails, which reminded users that they hadn't logged in for a while, actually annoyed some users and increased churn. Instead, he focused on building other ways into the product to re-engage users.

What is the significance of the 'aha moment' in customer retention for SAS businesses?

The 'aha moment' is significant for customer retention because it often indicates which features or actions lead to long-term engagement and payment. Understanding and optimizing for this moment can increase the likelihood of users staying with the product.

How does Henry handle users who cancel during a trial in his SAS business?

When users cancel during a trial, Henry waits a bit before sending an email expressing regret for their decision and asking for feedback. He believes that feedback from users who cancel is crucial for improving the product and potentially increasing retention.

What is Henry's strategy for nurturing customers after they become paying customers?

Henry's strategy for nurturing customers after they become paying customers involves providing them with master tutorials, success stories, and personal recommendations on how to make the most out of the platform to ensure they continue to derive value and stay with the product.

How does Henry's SAS business handle abandoned carts?

For abandoned carts, Henry's business waits to see if the user completes the purchase. If they don't, an email sequence is triggered, starting with an email from the founder highlighting the benefits of the platform, followed by emails offering help and additional value to encourage them to start the trial.

What is the role of social proof in Henry's email marketing strategy?

Social proof plays a role in Henry's email marketing strategy by providing credibility and trust. He uses interviews with industry figures and partnerships with well-known platforms like Squarespace to show that his product is reliable and effective.

Why does Henry believe in the importance of asking for and implementing customer feedback?

Henry believes in the importance of asking for and implementing customer feedback because it helps to identify areas for product improvement, which can lead to increased retention and customer lifetime value (LTV) by making the product more aligned with user needs and expectations.