{"id":2729,"date":"2021-01-05T10:00:00","date_gmt":"2021-01-05T10:00:00","guid":{"rendered":"http:\/\/138.197.200.24\/resources\/blog\/saas-conversion-rate\/"},"modified":"2026-08-10T08:15:16","modified_gmt":"2026-08-10T08:15:16","slug":"saas-conversion-rate","status":"publish","type":"blog","link":"https:\/\/www.smartkarrot.com\/resources\/blog\/saas-conversion-rate\/","title":{"rendered":"What is the SaaS Conversion Rate and How to Improve Upon this Benchmark?"},"content":{"rendered":"<div class=\"col-lg-8 ps-lg-4\" id=\"blogcatcontent\">\n<div aria-hidden=\"true\" class=\"wp-block-spacer\" style=\"height:20px\"><\/div>\n<p>All your efforts to drive traffic to your site, and all the visitors to your site will be a waste if you don\u2019t grow as a business. This is regardless of the kind of online business you are in. A high converting site (or product) is as essential to a SaaS business as water is to fish. And that is why it\u2019s very important to constantly monitor and optimise your SaaS conversion rate.\u00a0\u00a0<\/p>\n<div aria-hidden=\"true\" class=\"wp-block-spacer\" style=\"height:20px\"><\/div>\n<h2 class=\"wp-block-heading\">But what is SaaS conversion\u2026\u00a0\u00a0<\/h2>\n<p>This can be summed up in a single line: Turning a potential customer into a paid consumer of your product\/service is SaaS conversion.\u00a0\u00a0<\/p>\n<div aria-hidden=\"true\" class=\"wp-block-spacer\" style=\"height:20px\"><\/div>\n<h2 class=\"wp-block-heading\">\u2026 And SaaS conversion rate\u00a0<\/h2>\n<p>In the simplest of terms, a SaaS conversion rate is the number of conversions divided by the total number of visitors\/enquirers of your product. It\u2019s a metric that differs from business to business, depending on your goals and tracking metrics.\u00a0<\/p>\n<div aria-hidden=\"true\" class=\"wp-block-spacer\" style=\"height:20px\"><\/div>\n<h2 class=\"wp-block-heading\">Is there something called a\u00a0\u2018good\u2019 conversion rate?\u00a0<\/h2>\n<p>There\u2019s no one measure for this\u00a0to know what is SaaS <a href=\"\/resources\/blog\/best-practices-how-to-massively-boost-your-saas-free-trial-conversion-rate\/\">conversion rate<\/a>. It depends on various factors \u2013 each mutually exclusive. So, what\u2019s a \u2018good\u2019 rate for, say, an eCommerce sale might not be good for a lead-to-sales conversion. But the bottom line is, it\u2019s a measure to see how many of those potential \u2018in the trial\u2019 phase customer you can convert into a paying consumer. So, in a way, it\u2019s a check on the services you offer \u2013 whether they are enticing enough to blow away the\u00a0trialing\u00a0customer.\u00a0<\/p>\n<div aria-hidden=\"true\" class=\"wp-block-spacer\" style=\"height:20px\"><\/div>\n<h2 class=\"wp-block-heading\">Now, how can SaaS service providers \u2018entice\u2019 their customers?\u00a0\u00a0<\/h2>\n<p><em>On what basis are the success rations benchmarked? The three popular avenues for\u00a0<\/em><em>free-to-paid conversions\u00a0<\/em><em>are:\u00a0<\/em>\u00a0<\/p>\n<ul class=\"wp-block-list\">\n<li><strong>Free Trials\u00a0(without credit card):<\/strong>\u00a0This has the user sign up to sample the services or the product in the hope that they may end up as paying customers. The success of this one depends on high number of signups. Though the chances of customers not converting to paid consumers is high here, the higher number of sign-ups increases lead generation \u2013 something on the lines of what\u00a0<a href=\"https:\/\/www.drift.com\/\" rel=\"noreferrer noopener\" target=\"_blank\">Drift<\/a>, the digital marketplace platform, has done quite successfully.\u00a0<\/li>\n<li><strong>Free Trials that need credit card registration:<\/strong>\u00a0This is a favourite of most SaaS service providers as parting with their credit card information is seen as a first step to buying their product or\u00a0services by many.\u00a0But this model works on absolute transparency,\u00a0and the customer must be given multiple options to opt out of the trial period at any time, and also a clear announcement of the trial period. Once the customer samples your fare chances are that he\u2019ll be hooked to it, and will opt to pay for further services.\u00a0<\/li>\n<li><strong>Freemiums:<\/strong>\u00a0These days, freemium services have become a fad, especially for app-driven SaaS subscription models.\u00a0In this one, the customer can be a free-trialer\u00a0for the rest of his life, with only the advanced feature costing some money. This is usually not considered a good way to do business, since, you might not see many\u00a0conversions\u00a0to a paid pro version of your product. And yet, there are companies like\u00a0<a href=\"https:\/\/www.dropbox.com\/\" rel=\"noreferrer noopener\" target=\"_blank\">Dropbox<\/a>\u00a0and\u00a0<a href=\"https:\/\/www.spotify.com\/in\/\" rel=\"noreferrer noopener\" target=\"_blank\">Spotify<\/a>\u00a0that have made billions out of this model.\u00a0And who can forget\u00a0<a href=\"https:\/\/www.gamesindustry.biz\/articles\/2019-01-16-fortnite-tops-2018-superdata-chart-with-usd2-4b-digital-revenue\" rel=\"noreferrer noopener\" target=\"_blank\">Fortnite Games\u2019 PUBG<\/a>, the freemium that earned them 2.4 billion dollars last year?\u00a0<\/li>\n<\/ul>\n<p>Based on the product you sell, or the services you offer, you can try one, or a combination of all the above to improve your SaaS conversion rate. But know this: Even at this stage, everything depends on customer experience \u2013 so, the quality of your product, plus the value-added customer care you provide will be the key here.\u00a0<\/p>\n<div aria-hidden=\"true\" class=\"wp-block-spacer\" style=\"height:20px\"><\/div>\n<h2 class=\"wp-block-heading\">Conversion rate optimisation: Benchmarks\u00a0<\/h2>\n<p>Having said that, there\u2019s a kind of baseline count, a ballpark figure, that can be maintained as a \u2018good\u2019 SaaS conversion rate in general for all products or services.\u00a0An average figure that all SaaS platforms can achieve organically, as well as via paid initiatives.\u00a0They would typically go something like this:\u00a0<\/p>\n<ul class=\"wp-block-list\">\n<li>Free trials\u00a0(without credit card)\u00a0\u2013 8-10% conversion is a globally accepted benchmark\u00a0<\/li>\n<li>Freemiums would range\u00a0anywhere between\u00a0<a href=\"https:\/\/adachen.com\/freemium-and-free-trial-conversion-benchmarks-9fab38d096da\" rel=\"noreferrer noopener\" target=\"_blank\">4%-30%<\/a>\u00a0\u00a0(read Dropbox on the lesser side and\u00a0<a href=\"https:\/\/slack.com\/intl\/en-in\/\" rel=\"noreferrer noopener\" target=\"_blank\">Slack<\/a>\u00a0to the right)\u00a0<\/li>\n<li>Free trials (with credit card registration) \u2013 though the figures wildly vary between companies, the average is said to be about\u00a025%\u00a0(<a href=\"https:\/\/sixteenventures.com\/average-free-trial-conversion-rate\" rel=\"noreferrer noopener\" target=\"_blank\">66% of SaaS companies reported this figure<\/a>).\u00a0\u00a0You can average it out from the eight\u00a0public\u00a0estimates from SaaS experts,\u00a0one gets a\u00a026% conversion rate for this type of trial.\u00a0\u00a0<\/li>\n<\/ul>\n<div aria-hidden=\"true\" class=\"wp-block-spacer\" style=\"height:20px\"><\/div>\n<h2 class=\"wp-block-heading\">So, how to optimise\u00a0conversion\u00a0rate, real-time?\u00a0<\/h2>\n<div aria-hidden=\"true\" class=\"wp-block-spacer\" style=\"height:20px\"><\/div>\n<div aria-hidden=\"true\" class=\"wp-block-spacer\" style=\"height:20px\"><\/div>\n<p>Each company has\u00a0its\u00a0own strategy, but\u00a0overall, there are a few basic thumb rules all\u00a0<a href=\"https:\/\/www.appcues.com\/\" rel=\"noreferrer noopener\" target=\"_blank\">successful SaaS companies<\/a>\u00a0follow to get the best results:\u00a0<\/p>\n<ul class=\"wp-block-list\">\n<li><strong>Narrow down and t<\/strong><strong>arget the right\u00a0<\/strong><strong>customers:<\/strong>\u00a0Don\u2019t run after visitors who will not help you generate revenue in the long run. Monitor\u00a0incoming organic,\u00a0paid and referral traffic\u00a0and ensure you have top-funnel traffic.\u00a0Watch their behaviour to get an idea of your customer\u00a0<\/li>\n<li><strong>Tell your user about your product:<\/strong>\u00a0Educate them so that they understand your product and figure out how they can succeed in their business by using it\u00a0<\/li>\n<li><strong>Customise and personalise\u00a0<\/strong><strong>even free\u00a0<\/strong><strong>trial<\/strong><strong>s:<\/strong>\u00a0Use\u00a0past data\u00a0and data on your site to customise\u00a0offers\u00a0right from signup and enrich your\u00a0lead\u00a0generation. Make collection of information right at signup stage an important business strategy (<a href=\"https:\/\/wistia.com\/\" rel=\"noreferrer noopener\" target=\"_blank\">this is how Wistia did it<\/a>)\u00a0<\/li>\n<li><strong>Track everything, test, test, test:<\/strong>\u00a0Try new things, and see how your customers respond. Keep testing your products, innovations \u2013\u00a0a\/b tests,\u00a0customer feedback, etc., tell you why they\u2019re dropping off or converting.\u00a0<\/li>\n<\/ul>\n<div aria-hidden=\"true\" class=\"wp-block-spacer\" style=\"height:20px\"><\/div>\n<h2 class=\"wp-block-heading\">Conclusion\u00a0<\/h2>\n<p>SaaS is all about blowing away the customer with the very first click. First impression is everything \u2013 it will beget you a high SaaS conversion rate. Conversion is the key to growth and revenue. That is what will keep you above competition, help you dominate the market.\u00a0So,\u00a0give it your best shot!\u00a0<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>All your efforts to drive traffic to your site, and all the visitors to your site will be a waste if you don\u2019t grow as a business. This is regardless of the kind of online business you are in. A high converting site (or product) is as essential to a SaaS business as water is\u2026<\/p>\n","protected":false},"author":8,"featured_media":2728,"template":"","format":"standard","meta":{"_acf_changed":false,"_yoast_wpseo_focuskw":"","_yoast_wpseo_title":"What is the SaaS Conversion Rate and How to Improve Upon Benchmark?","_yoast_wpseo_metadesc":"Learn what is saas conversion rate? SaaS conversion rate is the number of trailing users who are yet to become paid customers. Know saas marketing benchmarks.","footnotes":""},"blog-category":[22],"class_list":["post-2729","blog","type-blog","status-publish","format-standard","has-post-thumbnail","hentry","blog-category-saas"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>What is the SaaS Conversion Rate and How to Improve Upon Benchmark?<\/title>\n<meta name=\"description\" content=\"Learn what is saas conversion rate? 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