If 1 out of every 8 people you email buys your product, you'd know how many emails to send to reach your target. Also, you wouldn't worry about the 7 who didn't reply. In the past I had no idea what the average conversion ratio was so I worried things weren't working and made changes too early. Below, we'll show you Upscope's blog conversion rate and the sales conversion rates of 2 other companies.
1. Upscope blog to subscriber conversion rates
Below we cover only the identifiable people coming from the blog and signing up, for a specific day. Right now around 600 people per day come to the blog and around 120 come to the main Upscope site from both the blog and other sources.
Tuesday 5th March 2019 is a typical day for Upscope
573 people came to the blog on 5th march.
They arrived at one of the top 20% of our posts that appear to be drawing in most of the relevant traffic. The blog post that converts most people to the Upscope main website is not the one that gets the most traffic, it's actually 12th in terms of traffic volume. It's a list of smart hacks for Intercom of which Upscope is one of the hacks.
26 clicked through to Upscope from the blog
3 of those 26 signed up. (I'm counting those who are shown as coming directly from the blog and signing up on that day. The number could be 50% higher per day but it's hard to track people across devices and some might sign up on the day but have seen the blog weeks before elsewhere.)
1 in 3 of those signups will typically convert into a long term buyer.
Where else are people arriving from?
120+ people come to the main Upscope landing pages each day.
They're coming from direct Google searches that take them to our landing pages and also from integrations listings, word of mouth referrals and 3rd party posts written about Upscope.
Quite a few are difficult to track as they might have seen us on mobile, then checked us out directly on desktop.
The larger companies often have a buying team or process where they evaluate a number of companies and so might find us from a list of similar tools, it's hard to say.
What's the biggest recent changes we made to impact the conversion?
A. We updated home page video to show a real person talking and the click through has gone from 4% to 23% but the previous video link was a button you had to click rather than a big obvious video so it's not a great comparison. That said, this new video works better than anything else I've seen because the person is talking and you feel compelled to click the 'enable audio' button to hear it. If you want to make your own explainer video for your SaaS or software company, here's how we did it.
B. I used Oribi content marketing analytics tool to improve our top blogs which increased clicks from the blog to the main product by 20%+ in a short space of time. I used Oribi to focus on refining the top 20% of posts that were having the greatest impact.
C. I guess one advantage we have is, we prove the value of Upscope by using Upscope to show users the app. We've now made walk-throughs, using Upscope, a default part of the sign up process. Upscope is no-download interactive screen sharing and is a unique experience if you have not seen it before. Users build muscle memory and make a connection using the software which you don't get with normal walk throughs or demo.
2. PhoneWagon daily sales metrics
PhoneWagon shared their stats on outbound calls to sales made:
First, we start off with outbound sales cold calls. To feed our sales funnel we have to make 100 dials a day.
14 decision makers reached
When we reach one of these 14 decision makers a day
4 demos set
Out of those 14 decision makers we will be able to set 4 demos.
3 demos show
Now of those 4 demos that got set, not all of them are going to show up. It is important to follow up with the person you set the demo with to confirm they are coming.
1 sale made
Right now our close-rate is about 30–35%. That’s generally considered about average for a SaaS company today. So of those 3 demos we perform, we will make 1 sale.
They make $200 new MRR per day from 100 dials.
3. Reply.io's sales funnel for quality leads
Reply.io is an email sales tool and below they show their stats.
Below, the response rates are for qualified leads and after extensive testing of subject headers and templates. In other words, they know what they're doing.
STEP 1 (quality leads rate)
After the initial contact:
- Open rate: 50-80%
- Reply rate: 20-25%
- Interested after reply: 2-5%
STEP 2 (leads-to-opportunity ratio)
Next, these 20-50 sales quality leads should convert into sales opportunities. Here it all depends on how the sales process is set up. Approximately, the lead-to-opportunity ratio is no higher than 20%.
In other words, 20% of those 20-50 quality leads will give you 4-10 opportunities.
STEP 3 (opportunity-to-sale ratio)
The last stage would be to close deals, and that’s where the opportunity-to-sale ratio steps in. It should be something around 15-25%.
So, those 4-10 opportunities will become your 1-3 customers.
See more on Reply's conversion rates
How this ties into other SaaS metrics like CAC
When you have product market fit and you have sales and marketing up and running, then you can think about things like LTV to CAC ratio and other startup metrics.
LTV to CAC ratio did not mean much to us before and it still has little relevance in our day to day work but it's useful as a double check on whether we are pushing fast enough so here's a simple breakdown of key SaaS metrics with real examples.
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