McKean Saas Adoption Model (Simplified)
e9ac082d-df49-4167-8932-65ab255ed7bc
isee systems, inc.
Stella Architect
0
6
30
100000
Sales_Rate
(Field_Sales_Efficacy)+((Adopters*"WOM/Viral_Effect_Constant_(Sales_resulting_per_Adopter)")-Adopters*(Adopters/"Non-Adopters"))
1
Sales_Rate
Number_of_Salespeople*Contacts_Per_Month_Per_Salesperson*Per_Contact_Likelihood_of_Sale
.4
40
100
20
Field_Sales_Efficacy
"Non-Adopters"
Adopters
"WOM/Viral_Effect_Constant_(Sales_resulting_per_Adopter)"
Number_of_Salespeople
Contacts_Per_Month_Per_Salesperson
Per_Contact_Likelihood_of_Sale
Field_Sales_Efficacy
Sales_Rate
"Non-Adopters"
Sales_Rate
Adopters
Sales_Rate
Number_of_Salespeople
Field_Sales_Efficacy
Contacts_Per_Month_Per_Salesperson
Field_Sales_Efficacy
Per_Contact_Likelihood_of_Sale
Field_Sales_Efficacy
"WOM/Viral_Effect_Constant_(Sales_resulting_per_Adopter)"
Sales_Rate
NON_ADOPTERS: This is your TAM - arbitrarily set at 100,000 potential
customers
ADOPTERS: These are your "installed base" (clients who already have the software). It is arbitrariliy set at 10 to account for people who will intrinsically give it good word of mouth or very early innovators who look upon in favorably.
FIELD SALES EFFICACY: This is the combined efficacy of your sales team which is simply the number of salespeople x contacts per salesperson per month x likelihood of a sale. This can be further broken out to account for the talent of individual sales groups or the difficulty with various sales segments.
WOM / VIRAL EFFECT: This is a constant to account for sales which are the result of viral marketing and/or word of mouth. It can be separated into two effects and it can also be coalesced with the Field Sales Effect as they are synergistic
SALESPEOPLE set at 100
CONTACTS PER MONTH PER SALESPERSON set at 20
PER CONTACT LIKELIHOOD OF SALE set at 50%
As expected, your sales rate peaks when the efficacy of the field sales and WOM/Viral effects maximize. From this point point sales will slow as you gradually exhaust your TAM and sell to as many as possible.
A more realistic model would separate the timing of the WOM/viral effect so that the total sales rate likely had two 'bumps' representing that they are individual yet connected phenomena. Also, in reality it would be unlikely that sales simply "cease" as you refine your strategy once they seem to slow.
McKean Adoption Model (Simplified)