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Freemium Conversion Rate: Why Spotify Destroys Dropbox by 667%

Freemium Conversion Rate

In 2015, The Fader reported huge news for Spotify. Out of its 75 million monthly users, 20 million are paying customers.

A 26.6% conversion rate is staggering on freemium products. As Jason Cohen says:

“A really good conversion rate for free-to-paid is 4%, like Dropbox. Awesome for them, but normal rates are more like 1%, and that’s if users are reasonably active.”

If 1% is average, and Dropbox‘s “really good conversion rate” is 4%, then 26.6% is absolutely bloody ridiculous.

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Is Bad Engineer Onboarding Ruining Your Company?

The following post is a guest contribution from Steve Klein the co-founder of StatusPage.io.
Engineer Onboarding

How long does engineer onboarding last at your company? 1 week? 2 weeks? A couple months? Regardless, it’s a process you think about in the short term, right when a new employee starts. Once it’s done, it’s done, and you can go on to thinking about the million other things that are going on in your company. Right?

Wrong.

The effects of employee onboarding last way beyond when a new person starts working and impact your whole company. If your onboarding isn’t effective, in just 1 or 2 generations of hiring you’re dealing with a team that’s shockingly less productive than it could be — and costing you a lot of money.

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Improving Your SaaS User Experience for Customer Success

SaaS User Experience

I’ve talked at length in the past about the user onboarding process, the difficulties of first-time use and how empty states can solve some of these problems.

While this is all well and good when you’re trying to tackle user drop-off after the first session, what about the later stages?

Assuming that everything else has clicked into place for your user and they’ve made it all the way up to the purchase, you must have made a good first impression! Unfortunately, it’ll be all for nothing if your app is hard to use, awkward, inflexible or disappointing over the long term, or if your premium plan’s onboarding isn’t tight.

Post-sale UX optimization isn’t something I’ve looked at before, or even heard about. But writing a guide about SaaS customer success is not a small task and UX is definitely a big deal, especially because good UX makes it easy for Customer Success to do their job.

In fact, a good SaaS user experience takes the weight off customer support, too. Overall, you don’t want to put a barrier between your users and your app and most importantly for revenue, you don’t want to put a barrier between your paying users and your app.

Here are some SaaS user experience optimization pointers to think about which will make the lives of your Customer Sucess team easier.
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How Microsoft’s Secret User Onboarding Process Fooled Us All

user onboarding process

What happens if you make software too difficult to use? Probably the same thing that happens if you never made it at all — no one uses it.

It’s easy to get users to adapt to familiar concepts like drag-and-drop, but what if you made something totally new? You need a creative user onboarding process, like the one Microsoft used back in 1992 and the others I’m going to look at in this post.

The Software User Onboarding Process

I already talked about concierge onboarding, so this time I’m going to look at the total opposite — a style known as low-touch user onboarding. It’s not always possible to work with every customer, especially if you’re distributing software on a massive scale like Microsoft Windows, so writing onboarding into your product is a necessity.

James Hunt‘s excellent article on Mental Floss reveals the true purpose of Minesweeper, Microsoft SolitaireFreeCell and Hearts: a gamified way to teach users concepts vital to success using Windows 3.1.

Let’s take a look at exactly how they did it.
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Concierge Onboarding: How to Make Customers Happy and Keep Them That Way

Concierge Onboarding

Megatrends — A Technological Prophet

The 1980s was the dawn of technology as we know it. It was also the dawn of hilarious technological hyperbole — you could hear the excitement in the voices of companies declaring they had built ‘the only computer you’ll need for years to come‘. Although laughable in the present day, commercial home computers like the Commodore 64 were a huge improvement on the monstrous machines of past eras so unwieldy they had to be built into rooms. In fact, for the first time in history, you could buy your own computer.

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50 Ways To Save Time & Money with Workflow Automation

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Why You Should Care About Workflow Automation

The majority of companies in the world now rely on software-as-a-service; cloud-based apps like Salesforce, Google Apps and Zendesk, also known as SaaS.

In 2013 Forbes reported over 50% of businesses use cloud computing, which has risen to 77% as of May 2015. As SaaS gains popularity, companies are finding innovative ways to integrate apps and automate as much as possible, leaving businesses more time to spend on strategies requiring human input instead of repetitive admin work.

Connecting apps to automate workflows is becoming increasingly more important as companies move away from Outlook and Excel to cloud-based SaaS apps. A major benefit of using SaaS is that apps have the ability to talk to each other via APIs and automatically trigger different functions and events between apps.

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