What are the conversion rates for SaaS? Examples

[dbnj2009]

I've been trying to figure out if our conversion are ok, or if we should work on optimizing them.

The main conversions are:
- From Visitor to User
- From User to Paid User
- Churn (Paid to Cancel)

Here is what I got from chatGPT and more or less, it's what Google says:

Visitor to New User	2-5%	5%
New User to Paid User	2-5%	5%
Visitor to Paid User	0.04-0.25%	0.25%
Churn Rate	N/A	>10%	7-10%

Stage
Good Conversion Rate Range (%)
Low (%)
Average (%)
High (%)

 

[joyfulanyway]

@dbnj2009 Actually it depends on many factors, what kind of bussines you do, B2B/B2C, PLG/SLG, market size etc. There are some benchmarks on this topic but I think it's unique for each bussines. Of course there could be strong sings that conversation rates are low, or churn is high.

I also think that such calculations are not really useful and meaningul, all these calculations should be based on the users who falls under your ideal customer profile.

For me it does not matter if I get too many visitors, or signups from segments who are not my target users.

 

[przemek]

@joyfulanyway Totally agree.

No need to make that number a decisive factor.

If the current number of customers is serving you well financially, no need to bother about it.

Unless you're a fan of hyper growth or seeing massive churn lately, simplicity is the way to go.

 

[dbnj2009]

@joyfulanyway ok, you got me there! This is a good point about the ICP and generic traffic conversions, as someday it might be very high or very low.

This actually brings maybe another topic to light - what to pursue to make your business "healthy". So that you don't spin your wheels by working hard on getting more traffic, but conversions suck and final results is not great. Any suggestions, is it CPC or something similar?

 

[matteus]

@dbnj2009 About 1 in 15 visitors convert to paid because I’m incredibly niched down and solve a common problem

I’m also apparently very skilled at SaaS sales/ marketing, and recently made an interactive sales funnel that converts for me

Waste of time comparing yourself to others though just focus on making yours better, should always be working on improving your conversion rates and sales

 

[dbnj2009]

@matteus Great point, do you focus on any particular conversion metric or rather more on around costs of acquiring customer with final profit?

 

[matteus]

@dbnj2009 Total number of people contacted

 

[xthemessengerx]

@dbnj2009 these numbers are nothing until you get 10,000 visitor.

curse of knowledge .. get over it..

duck the attirbution .. focus on support , and user experience.. once you have 10,000 visitor than check these metrics..

so you can get value out of them.. and take informed decisions of what to do next..

Data is sexy to look at .. but what actually matter is what you do with that data.

Head down.. get more people to sign up and convert..

so many variables.. are also invoiced.. with you can only taken in factor when you ahem enough data to analyze .

Hope this makes sense.

 

[dbnj2009]

@xthemessengerx Hi, I've got more than 10k/ mo and I agree you need some volume to make sense from your data.

As chatting with other guys, I now lean more to agreeing that these conversion numbers are just... numbers. It all depends on your business, CPC, costs, margins etc.

Maybe the learning is that the final conversion to paid client is always low. Therefore, you really need a lot of traffic on your website.