Tracking and optimizing key conversion points throughout the funnel is critical to driving growth for a SaaS business. Every stage of the customer journey, from acquisition to long-term retention, is an opportunity to improve efficiency architect data and maximize results.
Understanding conversion benchmarks helps inform decision-making, allows you to optimally allocate resources, and take a proactive approach to driving performance. So, let’s look at the top key performance indicators (KPIs) that B2B SaaS leaders should monitor to optimize their funnel and accelerate business growth.
Contents of this article
What is a SaaS conversion?
Conversion occurs when a person takes a desired action on your app or website . The term is often used to describe visitors who become paying customers, but can also refer to intermediate steps such as visitor to trial user, trial user to paying user, and freemium to paying customer.
Stages of the B2B SaaS conversion funnel
The ideal SaaS conversion funnel covers both visitors and existing customers – the sales funnel and the customer success funnel. Learn about each one and its stages:
Sales Process Conversion Funnel
The sales process covers the user’s journey from being a simple prospect to becoming someone who finds your tool valuable enough to buy it.
The stages include:
Website Visitor: This is the entry andreas roos leiter it point. Potential customers arrive at your website through the inbound and outbound marketing funnel.
Qualified Leads: Marketing and sales teams qualify website visitors based on their actions. The most common ones are: submitting contact information, signing up for a demo, agreeing to speak with an account executive, etc.
Product-qualified leads: These are vietnam news latter people who have direct experience with your product. They have signed up for your free trial and have gained value from using your features.
Paying Customers: This is the final stage. Your qualified prospect becomes a paying customer.