Insights, Marketing, Web
Trying to increase lead generation for your SaaS company without having a firm grasp on the metrics that lead to conversions will only end up in a string of expensive assumptions and guesswork.
If you’re serious about getting more leads interested in your SaaS solution, you need to know what the most important conversion metrics are and how to measure them.
But with so many conversion metrics you could keep a watchful eye over, how do you know what ones to prioritise for your SaaS company? Keep reading to find out!
The sheer volume of data analytics at your disposal can be overwhelming. That’s why we’ve outlined the SaaS metrics to track for lead generation and why.
Knowing where your traffic comes from will help you understand what’s working and what isn’t regarding SaaS lead generation.
Looking at Google Analytics, you’ll see:
By seeing what sources bring the most leads, you can increase marketing efforts to get more visitors from this specific source, whether that’s upping your Facebook ads for more referral traffic or amping up your SEO strategy for more search visitors.
Churn rate is one of the most crucial SaaS marketing metrics to track for lead generation, as it lets you know how many customers leave your SaaS company within a specific period.
If you’re losing customers at an alarming rate, you’ll know that your marketing campaigns aren’t hitting the mark. Maybe you’re giving SaaS leads one impression of your product, but when they use it, they experience something else, for example.
Suppose you don’t know how much it costs your SaaS company to acquire a new lead. In that case, you’ll have difficulty understanding how much money to pump into your marketing campaigns and the return on investment you can expect.
Your lead acquisition cost is the total price of your marketing campaigns over a specific period, divided by the number of new leads they brought in. You can even drill down into each campaign or marketing channel to understand what marketing investments are paying off.
To fully assess your marketing efforts and know what SaaS lead generation campaigns are producing the best results, you need to pay special attention to your conversion rates across every audience segment, marketing campaign, and channel.
Conversions can be anything from signing up for a free trial to activating your SaaS solution and renewing subscriptions. It’s up to you to assess what conversions matter most to your SaaS company.
Leads signing up for free trials or booking demos doesn’t automatically lead to paid SaaS subscriptions down the line. So it’s important to see how long it takes, on average, for a customer to go from signing up to paying for your product over a year.
Understanding this key metric will help you forecast how many paid plans you can expect from people signing up for free trials and identify what motivates people to go from a lead or freemium user (if you offer this) to paying customer.
Your lead velocity rate is the amount of marketing qualified leads you’ve achieved from one month divided by the amount of MQL achieved in the next month, multiplied by 100 to give you a percentage.
Knowing your lead velocity rate will help you determine if your SaaS marketing and sales efforts are more or less effective from month to month and give you an idea of whether you can expect to hit your end-of-quarter or end-of-year goals.
Without these metrics, your SaaS company won’t be able to fully grasp what marketing campaigns and channels are creating more leads and eventually converting them into paid customers.
You have to know precisely what works and what doesn’t if you want to keep improving your marketing efforts and growing your monthly and annual recurring revenue.
Let us do it for you! With rolling monthly price plans starting from just £3,000 per month, we join or become your dedicated SaaS marketing and web design partner, taking your online presence to sky-high success with proven lead generation strategies, comprehensive digital marketing, and high-converting websites.
Get in touch with us today to get started.