New Delhi, February 1 2015: Top of the wishlist of every software service company is this challenge: How to turn free and trial users into paid subscribers.
Now a leading data analytics firm – Absolutdata -- has answered their prayers with the NAVIK Converter, a product that identifies users who are primed for conversion and recommends how and when to target them with marketing messages and/or product changes.
In testing, the NAVIK Converter has raised conversion rates by as much as 30% without any increase in marketing spend.
Software as a Service companies struggle with free to paid conversions even though their business model relies entirely on making it happen. Data can be an effective tool, but only when wielded with precision. Absolutdata recognized that the solution is in asking the right questions and following the thought to the end, and not in getting tangled up in data and modeling techniques alone.
Says Anil Kaul, CEO of Absolutdata: “The NAVIK Converter is a paradigm-changing product because it reverses the way companies normally use data. Traditionally, businesses see what data is available and then try to apply it towards part of a question or problem. With Decision Engineering, we start by asking, ‘What decisions do we have to make, and what data and analytics do we need to optimize the entire decision?’, and we work backwards from there. This process is what makes the NAVIK Converter such a novel and effective product.”
The NAVIK Converter begins by identifying all ‘persuadable’ users: free and trial users that have demonstrated the potential to become paying customers based on activity inside the product, usage patterns, demographic data, engagement with marketing messages and many other attributes.
- For each segment of persuadable users, the NAVIK Converter recommends which product features to promote or discount in a marketing message, what channel to use (e.g. email, in-product, social media, etc.) and when it’s best to send the message.
- Once a decision about messaging is made, NAVIK Converter tracks the resultsin real-time.
- The SaaS company can make mid-course corrections and continually optimize conversions. It also recommends incremental product changes that will nudge free users to perform activities that lead to higher conversion.
Before launching NAVIK Converter, Absolutdata tested the product with two different SaaS companies. One, a cloud storage company, increased its free to paid conversion rate by 30%. The second, an online genealogy company, increased its bill through rate (BTR) on free trial signups by 5%.
More about NAVIK Converter here