Statistics show that on average, only 2% of MQLs convert to SQLs (sales qualified leads) or even reach the opportunity stage. Free trial conversion Meanwhile, 25-30% of PQLs convert to paying customers .
It’s also important to note that Gainsight’s Product-Led Growth Index Report (2022) shows that free trials involving PQL had 2.8x higher conversion than freemium .
Freemium conversion rate
The average freemium conversion rate ranges from 1% to 10% .
Some companies treat freemium as lawyer data a lead generation strategy to collect user information and have marketers chase them, but that way you will annoy potential customers and lose most of them.
Instead, to be successful, focus on providing value with your free version . Make the product so useful that users are compelled to pay and experience more.
A similar survey by Softletter reported a 25% conversion rate for free trials that didn’t require a credit card .
At this point, Free trial conversion keep in mind that using a credit card to sign up for a free trial shows commitment. Users who do this are generally interested and more likely to become paying users.
On the contrary, allowing trials without a credit card means opening the door to those who are not necessarily interested.
User activation rate
User activation refers to the stage where a new user takes a key action within your product that indicates their engagement and likelihood of becoming a paying customer.
Research by Lenny Rachitsky and vincenzo mammana Yuriy Timen shows an average activation rate of 36% for SaaS companies.
Product adoption rates
Product adoption is the proportion of users who continue to actively use your product after initial onboarding.
The adoption rate depends on the SaaS category:
- The share of file storage and collaboration tools is 20.9% .
- Education-related platforms fresh list rank second with an adoption rate of 7.5% .
Customer retention rate
According to Recurly, the average churn rate for SaaS is 4.79% .
SaaS Capital’s 2023 research shows that the median net retention among SaaS companies is 102% . Median gross retention is also high at 91%.
Knowing B2B SaaS funnel conversion benchmarks benefits you by giving you something to aim for and motivating you to take actionable steps to drive product growth.