When building a freemium SaaS company or an ecommerce company or any product that requires users to move through a funnel towards an objective, it’s important to track this funnel to understand where the funnel can be improved.
But tracking one funnel may not be enough. The aggregated funnel may be masking conversion differences across customers segments. For example, at Expensify conversion rates to paid vary quite a bit across customer size. But the total conversion-to-paid rate hides these nuances.
It’s critical to understand each segment well. For each, which features are missing or are too complex? How do they prefer to try and pay for the product? Which acquisition mechanic is the most effective? What marketing message resonates with the segment?
This understanding is ultimately critical to the success of the product and marketing teams who must determine how to serve the different segments of the customer base effectively and efficiently. It’s also another example of why founders should teach their teams statistics.
We recently built a segmented marketing funnel at Expensify. These are the steps we followed.