Customer Conversion and Retention / Satisfaction Measurement Index

M

moneybin

#1
Hi,

I have a Software as a Service client who has asked me to put together an index to measure the satisfaction of the subscription base (retention) and the propensity (probability) for trial users to convert to a paid monthly subscription plan by the end of the trial period.

The client runs a "proposal making" website, allowing anyone to easily make proposals in minutes and send them out to clients through the website.

He has requested that the index be completely data driven, meaning:
- No customer interaction / survey
- No manual weightings to index elements
- Index elements built on the data held on each customer in the MySQL database
- Index composed by using statistical methods to derive the important factors to customer happiness

--------------------
Type of customers
--------------------
Trials (14 days)
Actives (On a monthly subscription plan)
Deletions

--------------------
Sample of data elements from the Database
--------------------
- Days since last login
- Account Created Date
- Total No. Users
- Total No. Active Users
- No. Users Made Proposals
- Total Proposals Made
- Total Proposals Sent
- Total Proposals Accepted
- Total Proposals Declined
- Total Proposals Exported To PDF
- Total Proposal Fees Created
- Total Project Fees Created

--------------------
Your help
--------------------

I need to identify what statistical methods, algorithms, or formulas I need to use in order to meet the two needs of my client:
1. Customer Happiness index, driven by the data
2. Probability a trial user will convert to a paid subscription

Your help is very much appreciated. Please let me know if you need any further information or clarifications
 
Elsmar Forum Sponsor

Jim Wynne

Leader
Admin
#2
<snip>
I need to identify what statistical methods, algorithms, or formulas I need to use in order to meet the two needs of my client:
1. Customer Happiness index, driven by the data
2. Probability a trial user will convert to a paid subscription

Your help is very much appreciated. Please let me know if you need any further information or clarifications
Welcome to the Cove. :bigwave:

Your second item, about trial users converting to paid users, seems to have a simple answer if you know for a given period, say 2011, how many trial users converted to paid users. Strictly speaking this won't result in a rigorous probability number (because of variables not known and probably unknowable) and it won't account for trial users who converted after the trial period with different login credentials, but it should tell you something about likelihood.

As for a "happiness index" you first have to define what "happy" means if you're not going to ask users if they're happy, and what they're happy about.
 
M

moneybin

#3
Hi Jim,

Thanks for your quick reply. We believe we have all of the data necessary to say with an intelligent guess if a trial user will likely convert to a paid subscription and also for "gauging" the happiness of a paying subscription user.

One option we discussed was profiling recent customers who converted to form an "average profile" to compare "current" trial users against to measure how close they fit the profile. Does this sound like an appropriate statistical method to use to derive the probability we're looking for? :truce:

For the happiness index, we want to build something similar to the Dharmesh Customer Happiness Index:

lightpointsecurity.com/content/measuring-customer-happiness-dharmesh-shahs-2010-business-of-software-conference-presentation

:read: At the end of his 2009/10 presentation video, he discusses using a simple regression but I'm not sure if this is the correct approach we should take for gauging the satisfaction of the user base to continue to pay the subscription another month.

Looking forward to hearing your thoughts :)
 
J

JaneB

#4
I have a Software as a Service client who has asked me to put together an index to measure the satisfaction of the subscription base (retention) and the propensity (probability) for trial users to convert to a paid monthly subscription plan by the end of the trial period.

The client runs a "proposal making" website, allowing anyone to easily make proposals in minutes and send them out to clients through the website.

He has requested that the index be completely data driven, meaning:
- No customer interaction / survey....
Concur with Jim's advice - if you're going to measure 'happy', then you must know what being 'happy' comprises.

I'm somewhat puzzled when you say your customer has demanded an index of measuring the 'satisfaction' of the subscription basis, but this must be done without any customer interaction!

I fail to see how you can assess 'satisfaction' without any customer interaction. Or is the word 'satisfaction' actually being used to mean something else?

If I understand it correctly, the process is:
  • as a customer, I create a/some/many proposals using your client's website, and send said proposals out to my clients.
  • Your client then wants to know if I and others customers are 'satisfied' and will take out a sub/continue subscribing. The proposal is to do that without any further interactions with any customer.
Correct?

If so, my response is: huh? :nope:

I'll be interested to hear if you find something that works. I cannot see it, but that may be just my viewpoint. But then, I don't see why one would forego any opportunity to get any kind of interestion and feedback from customers, prospects and leads.
 

harry

Trusted Information Resource
#5
.......................... I fail to see how you can assess 'satisfaction' without any customer interaction. Or is the word 'satisfaction' actually being used to mean something else? ...............................
Perhaps he is thinking of prediction using regression methods!
 
Thread starter Similar threads Forum Replies Date
M 8.4.1.1 Register of approved suppliers and requirements when they are customer-designated AS9100, IAQG, NADCAP and Aerospace related Standards and Requirements 0
T Who's responsible for verification of customer specifications? IATF 16949 - Automotive Quality Systems Standard 12
D Is IATF certification required when customer doesn't require it? IATF 16949 - Automotive Quality Systems Standard 19
G Customer specific characteristics symbols Customer and Company Specific Requirements 2
S Defining special characteristics beyond customer drawing FMEA and Control Plans 11
M Customer PPm (CPPM) on Pass-Thru Items Statistical Analysis Tools, Techniques and SPC 0
V Would the customer drawing change necessitate re-PPAP of the Product? APQP and PPAP 3
S Do we have to create a new PPAP to our customer if our Sub Contractor had to change? APQP and PPAP 10
FuzzyD ISO 13485:2016 Customer Assessment OFI ISO 13485:2016 - Medical Device Quality Management Systems 2
I Restricting scope to one part number for one customer IATF 16949 - Automotive Quality Systems Standard 6
R Customer Listed on Approved Supplier List (ASL) AS9100, IAQG, NADCAP and Aerospace related Standards and Requirements 0
N 8.3.3.3 Special characteristics - Auditor said we are required to create our own, if no customer char. exist. IATF 16949 - Automotive Quality Systems Standard 10
R Audit from Customer - concerned with IP protection ISO 13485:2016 - Medical Device Quality Management Systems 4
L Documenting internal audit of customer specific requirements IATF 16949 - Automotive Quality Systems Standard 7
L Supplier Performance when your supplier is also the customer ISO 9000, ISO 9001, and ISO 9004 Quality Management Systems Standards 17
I Customer Feedback Medical Devices ISO 13485:2016 - Medical Device Quality Management Systems 6
JoeRandom11 Question about Customer Supplied Equipment AS9100, IAQG, NADCAP and Aerospace related Standards and Requirements 2
Moncia Customer satisfaction monitoring - ISO 9001 and 14001 ISO 9000, ISO 9001, and ISO 9004 Quality Management Systems Standards 24
D Customer Survey Example - ISO 13485:2016 ISO 13485:2016 - Medical Device Quality Management Systems 7
R Customer feedbacks sampling size EU Medical Device Regulations 4
G ISO 9001 - when implementing customer requirement ISO 9000, ISO 9001, and ISO 9004 Quality Management Systems Standards 7
P Customer Specific Requirements (Costco Wholesale) IATF 16949 - Automotive Quality Systems Standard 1
S Customer audit report review and approval ISO 13485:2016 - Medical Device Quality Management Systems 3
A Report on handling customer property ISO 9000, ISO 9001, and ISO 9004 Quality Management Systems Standards 1
L Customer Complaint Internal Auditing 3
M Corrective action for a defect from customer's mistaken Nonconformance and Corrective Action 1
T Customer Rejecting Part for Basic Dimension Inspection, Prints (Drawings), Testing, Sampling and Related Topics 16
P Customer 8D IATF 16949 - Automotive Quality Systems Standard 8
M Customer Dimensions on Internal Drawing, all of them? IATF 16949 - Automotive Quality Systems Standard 3
Robinson A Improving Customer Satisfaction Service Industry Specific Topics 5
M How to show the effect of the failure mode on the manufacturing process as a customer of product design process? FMEA and Control Plans 3
K SaMD and Customer Integrations Medical Information Technology, Medical Software and Health Informatics 3
JoCam Non CE marked device for customer review Other Medical Device Regulations World-Wide 0
L Question regarding "Customer Property" AS9100, IAQG, NADCAP and Aerospace related Standards and Requirements 11
Sortinghat Locating Customer Supplier Manuals Customer and Company Specific Requirements 5
S Rude Customer Auditor General Auditing Discussions 18
M Customer Specific Requirements - Packaging Spec IATF 16949 - Automotive Quality Systems Standard 10
D Automotive Customer asking for ISO 14001 Certification from suppliers ISO 14001:2015 Specific Discussions 3
M Signed PSW directly to End customer, Tier 1 wants their own PPAP IATF 16949 - Automotive Quality Systems Standard 6
D Customer requirements on specific standards Various Other Specifications, Standards, and related Requirements 6
Crimpshrine13 Customer Scorecards - Missing Scorecard from one Customer IATF 16949 - Automotive Quality Systems Standard 27
B Customer Preference Testing Customer and Company Specific Requirements 2
T No Customer Response to an SCR Manufacturing and Related Processes 2
D Customer Specific Requirements / Customer Requirements for Indirect Customers IATF 16949 - Automotive Quality Systems Standard 10
H Customer Specific Change in a SaaS SAMD IEC 62304 - Medical Device Software Life Cycle Processes 1
B Put on escalation by customer? is there a requirement to notify registrar? IATF 16949 - Automotive Quality Systems Standard 6
P 7.5.10 Customer property - applies to leased/rented equipment? ISO 13485:2016 - Medical Device Quality Management Systems 10
M Customer Property - ISO 13485:2016 Clause 7.5.10 ISO 13485:2016 - Medical Device Quality Management Systems 9
R Cpk demands from automotive customer Capability, Accuracy and Stability - Processes, Machines, etc. 8
briteme4 Customer Requests FAI on Tooling Fixture AS9100, IAQG, NADCAP and Aerospace related Standards and Requirements 3

Similar threads

Top Bottom