A lot of people are concerned about their SaaS conversion rate, with the typical question being: What is a good conversion rate? That might not be the only question they're asking.
When looking at metrics and benchmarks for SaaS companies, the quality of their landing page is a big part of what starts people moving down the sales funnel. But it's not just the landing pages that matter.
Other concerns affect these rates of conversion as well and studying all of them with the proper benchmarks in place; makes it easier for every company to succeed.
With a free trial of Baremetrics, you can get a better look at the types of metrics you want to use for your conversion rate concerns.
What is a Good Conversion Rate?
Typically, a good conversion rate is between three and five percent, with a strong rate being anything greater than eight percent.
However, there's a lot to be considered in this, and what seems like a good rate for one type of company might not be a good rate for another.
If you're focused on the number of subscribers you have, you could have a lower or higher conversion rate and still be doing either better or worse than you expect.
The benchmarks you have set for B2B SaaS conversion rates, for example, will be different for another business model.
Similarly, you may be able to see your customer acquisition cost (CAC) change drastically, even if you haven't yet reached conversion rate optimization.
Does Your Rate Look Different?
How many people are lining up at your site with their credit cards isn't the only thing you'll want to look at. You have to focus on other aspects of e-commerce and customer acquisition, as well.
With freemium services, there are ways to bring in new customers — and paying customers — more easily with strong lead generation.
However, it could take some time for that to change your overall rate, depending on how many current customers you have and the type of business you're offering them.
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What Benchmarks Do You Want to Use?
The pricing you offer, the many qualified leads you bring into your SaaS business, your social media presence, whether you're a startup, and more will all matter when you consider your benchmarks.
There's no official template for how things look at every company. Your trial conversion rate, Annual recurring revenue (ARR), average conversion rate, and churn rate all should be part of your benchmark strategy.
You must also ensure that your content marketing and CTA opportunities should also reflect that.
How Does Your Rate Compare to Your Competition?
Your rate might not match that of your competitors, but that's not all you want to think about.
Even if you aren't in the first place, if your email marketing is effective and you're meeting targeted goals, you're likely succeeding.
A free trial conversion opportunity could help you, but it isn't going to solve everything you have questions about.
You'll want to dig deeper than that, and get into the onboarding process, the number of customers you have, and more.
Take a look at the SaaS industry and SaaS product options you have, and consider testimonials, as well.
Are You Using the Right Tools?
A key thing to remember is that you're the only one who can choose whether you have the tools you need or if you want something different.
Word-of-mouth can help you find those tools and also help with the conversion rates you need.
Also, consider a trial period where you do things differently to see if it makes a difference for your rates of conversion.
Get deep insights into your company's MRR, churn and other vital metrics for your SaaS business.