Existing platforms like, Gmail, Slack, Netsuite and Intuit have huge built-in audiences/users that you can leverage. Instead of building a platform…enhance an existing workflow.Mixmax started with just a single plan, monthly only. Err towards simplicity and making it easy to buy, bringing on as many customers as possible. Instead of charging a lot…don’t get pricing right at the outset.Constraints breed creativity, creativity breeds $0 CAC. Instead of spending to grow…instill a culture of frugality.Mathé’s lessons to other founders headed down this path? But one thing remains certain, the only way to achieve $0 CAC is to grow through virality. In the end, Mathé and the Mixmax team came to understand much about virality that challenged their initial assumptions. Design Principles for Achieving Near-Zero CAC Surprisingly, widely touted network effects accounted for less than 1 percent of signups. “Perhaps it’s time we replaced NPS with asking for actual referrals” says Mathé. Mathé hypothesizes that this is because they ask for referrals early in the customer lifecycle and because Mixmax has broad appeal. “The other thing that I think seems to have worked better than expected is asking people to invite others to the product.” In fact, 12% of sign ups came from referral virality. For SaaS products, Mathé refers to this as the “office pod dynamic” in which one employee talks up the product and encourages others to sign on. Looking back, what worked best for Mixmax was word of mouth (aka brand), which accounted for 44 percent of the company’s signups. Virality: What Works and What Doesn’t in SaaS
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