What’s a good conversion rate for a B2C SaaS product that costs $9 per month?

[maeflower]

Currently my company is converting 6% of our traffic to our $9 per month product.

Is that good? I can’t get a clear answer on google for what the average conversion rate for something like this.

 

[keitumetse]

@maeflower Solid how are you directing the traffic?

 

[maeflower]

@keitumetse From TikTok, mix of organic and paid

 

[adelita]

@maeflower Id assume that’s pretty good unless you have an abnormally high customer acquisition cost

 

[maeflower]

@adelita CAC is about £25 but we’ve got a new campaign that’s doing around £18 but it’s fresh so not sure on the data. 3 months to make a profit off a customers isn’t bad (I don’t think?) but is causing a cashflow issue

 

[adelita]

@maeflower Whether or not 3 months is too long or not long enough would depend on your retention

 

[maeflower]

@adelita For sure, only 6 weeks in and about 4 months of runway left tho

 

[adelita]

@maeflower I think then you need to reduce acquisition costs or increase retention. The latter sounds easier

 

[maeflower]

@adelita Or raise from an angel until we can get to a stable cashflow?

 

[adelita]

@maeflower Or yeah that works too

 

[monstersstuck]

@maeflower Whether it’s a good CAC depends on your customer LTV. If it’s causing your cash flow issues, take on short term debt if you know you can reliably pay it off once the customer drives revenue. If not, adjust down your CAC until you have some margin.

 

[harleyer]

@maeflower Curious what your conversion would be if it was $20/month and more.