Re-accelerating Growth with Manav Khurana New Relic

SaaStr Annual 2022

1. Re-accelerating Growth Manav Khurana Observability GM & Chief Growth Officer New Relic @manavkhurana 1

2. 2 2 years ago… Today… 2.5x increase in growth rate Accelerating # of new customer adds 90% of customers on full platform Declining growth rate Losing more customers than adding No adoption beyond APM (1st product) At New Relic, we went through a PLG Transformation Thanks to 3 pivotal PLG decisions, luck and a lot of hard work

3. When I started at New Relic 3 years ago… My boss said: 3 Our customers said: “New Relic is too expensive. I only use it for my most important applications.” “I didn’t know New Relic did anything other than APM.” “I need your field engineers to come and enable the new features.” “Our growth has stalled because we’ve lost the magic in our product. It has become too hard to use. You job is to bring back the PLG principles that made New Relic so successful in the early days.”

4. We made a bold decision on packaging 16 SKUs Application Monitoring Infrastructure Monitoring AWS, Azure, GCP Monitoring Browser Monitoring Mobile Monitoring Synthetics Monitoring Serverless Monitoring Kubernetes Monitoring Log Management Alerts AIOps Dashboards Error Tracking Metrics, Events API Distributed Tracing Model Performance Monitoring each one with a different pricing meter & need for a new contract. 4 One Platform Every customer gets all capabilities. Pay per GB & users. Pay only for what you use. 4 months analysis & alignment. 5 months to build.

5. 2 years ago… we launched 5 … and that was the start line. Sales team started migrating customers to the platform model & consumption pricing. Growth team started the self-service engine to get new paid customers, starting with the free tier. A number of things went wrong before they went right

6. Data-driven approach to build & scale a self-service experience Step 1: Establish the funnel 6 Free Tier Signups Ingesters Exceeders New Paid Customer When someone goes to our website and signs up for a free tier account When a new signup installs New Relic, within a day of signup. When a free tier customer exceeds their free tier & hits a paywall. When a free tier enters a credit card & usage is > free tier.

7. Data-driven approach to build & scale a self-service experience 7 Free Tier Signups Ingesters Exceeders New Paid Account Step 2: Practitioner-focused Marketing Free Tier Signups Ingesters Exceeders New Paid Customer 16-page form for sales qualification Name + Email to signup 14-day trial Perpetual free tier Monthly signups have tripled in 2 years Buyer-focused campaigns Practitioner-focused campaigns

8. Data-driven approach to build & scale a self-service experience 8 Free Tier Signups Ingesters Exceeders New Paid Account Step 3: Reduce friction at each step Free Tier Signups Ingesters Exceeders New Paid Customer Multiple, confusing install flows Install recipes & streamlined UX Hard to setup integrations 18pp increase in signup-to-ingest rate over 2 years, ~2x monthly exceeders in the last year. 400+ integration catalog Orientation problems Guided setup & recommendations

9. Data-driven approach to build & scale a self-service experience 9 Free Tier Signups Ingesters Exceeders New Paid Account Step 4: Ongoing experimentation Free Tier Signups Ingesters Exceeders New Paid Customer One paywall after exceeding Intent-based paywalls One standard pricing offer Vertical-specific Promos 5x increase in new paid customers / month over 2 years Free -> Paid experience Paid + Upsell + winback experiences

10. One year ago… Interviews & “handraisers” revealed flaws 10 “I am not an engineer, but want to use New Relic for my team.” “I need help understanding best practices before I roll-out” “I need help sizing my usage for the next year before I add my CC” “I need help to train my team before we start using New Relic” Free Tier Signups Ingesters Exceeders New Paid Customer

11. Six months ago… we built a new inside sales experience 11 Signup PQLs Small Ingesters Aged Exceeders Unpaid Customers Handraisers Inbound Sales Engagements New Paid Customers There are a lot of options on what to do. Focusing first on inbound interest is surprisingly hard! Ongoing optimizations on sales process & enablement ~2x new paid customers from Self Service alone

12. Looking back… It was all about prioritizing customer value Platform packaging with Free Tier & Pay as you go Data-driven approach in Product Inverted Inside Sales model Changing the culture was the hardest part Arrived on a differentiator in times of economic uncertainty 12

13. THANK YOU