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Improve Your
Retention With
This One Change
David Cancel
SaaStock 2016
About David Cancel
• 5x Founder / 2x CEO
• CEO/Co-Founder, Drift
• Chief Product Officer, HubSpot
IPO: HUBS
• CEO/Co-Founder, Performable
acquired by HubSpot
• Owner/Founder, Ghostery
acquired by Evidon
• CTO/Co-Founder, Compete
acquired by WPP
• Investor/Advisor/Director to Various
Companies and VC Funds
One change can
improve retention.
Really?
Want To Improve Your Retention? Focus On This One Change
Want To Improve Your Retention? Focus On This One Change
Align incentives.
The most important rule in
management, ‘Get the
incentives right.’
-Charlie Munger
“
Simple, not easy
But …
Which incentives?
Two categories of
incentives:
1. External
Align your pricing,
product, and promotions
with your customers.
2. Internal
Align your teams and
departments to promote
customer retention.
There are lots of
talks about #1.
We’re here to talk
about #2.
Not what you’re
thinking…
Want To Improve Your Retention? Focus On This One Change
So…
How do we align the
incentives of our
departments?
The best way to
change behavior …
… is to leverage
cognitive bias.
There’s only one bias
in this case.
But ideally you
should study all 25
cognitive biases.
(as described by
Charlie Munger)
“The Psychology of
Human Misjudgment”
http://cancel.im/25-biases
Today we are
discussing bias #1.
Reward & Punishment
Super-Response Tendency
If you would persuade,
appeal to interest and
not to reason.
-Benjamin Franklin
“
Incentives and
disincentives …
… rule everything
around me.
Want To Improve Your Retention? Focus On This One Change
Few businesses
get this right.
How do you align
your teams today?
You are what you
measure.
But remember …
… there is a dark side
to metrics.
Want To Improve Your Retention? Focus On This One Change
Want To Improve Your Retention? Focus On This One Change
Are your metrics
aligned with your
customers?
(Most team
metrics aren’t.)
Sales?
Marketing?
Product?
Solution:
Customer-Driven
Design every teams’
metrics to incentivize
customer retention.
Examples:
Establish baselines.
NPS
eNPS
Want To Improve Your Retention? Focus On This One Change
1. Sales
Territories
Upgrades
2. Marketing
Leads + Customer NPS
SDRs
3. Engineering +
Product
Customer Service
Internal customers
Product’s Internal Customers
Sales Support Success
Engineer Tech Lead Engineer
Marketing
No product roadmaps
Product adoption
Usage frequency
Shipping to customers
daily
Want To Improve Your Retention? Focus On This One Change
Monthly science fairs
Want To Improve Your Retention? Focus On This One Change
Want To Improve Your Retention? Focus On This One Change
One change can
improve retention.
Need help making
that change?
Check out what I’m up to at Drift.com

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