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The SaaS world is competitive. You know it and I know it. But, there is a catch! If you know the funnel well enough, have the will to experiment and imply creativity, and implement the whole thing successfully, you might just have the edge. 

I have to be honest here before we start. Have you watched 'The Big Bang Theory'? If you haven't, you might as well do, with this blog post. 

This guy, Sheldon Cooper used to keep super detailed records of all the comic books he owned. You as a B2B company should do the same with your funnel metrics. Record success and failure, and all the processes you can work upon to modify and improve your marketing strategy.

Interested? Want to know more? Follow along!

What is a B2B SaaS Funnel?

In a B2B SaaS Funnel, you will find different phases you have to go through. Don't worry, here is the list.

1. Awareness
2. Consideration
3. Conversion
4. Retention

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Now, listen carefully. Every stage is a part of the customer cycle and equally important. If you follow this funnel and look at the output of each stage carefully, you will be able to identify the bottlenecks that are occurring.

Let's understand each phase.

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Awareness

Want your Potential customers and leads to know you exist? Yup, that's the awareness stage. Traditionally, awareness can happen through direct channels.

You can go forward with;

• Content Marketing
• Social Media Marketing
• Paid Advertising

And more.

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Consideration

Now that your leads know about you, will they consider trying your product? Do they seem interested? Are they willing to go through the risk of switching (or even thinking about it?)

This stage is all about consumers trying to get to know you the best and comparing you with your competitors to find who is the best for them. Now, every user today is smart. 

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They have their own research gates and have all the information they need from every source out there.

How to stand out? Ask them, educate them, trigger them, entertain them, and tell them you are the best. Tell them that you stand out and you are who the user wants. 

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Conversion

Now that the lead likes you (because your SaaS is the best out there), they want to take action. How? By engaging with your marketing metrics. They might agree to a free trial of your product or service, may reach out to you about the available options (or might even buy your product!)

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Retention

Customers use your product. It's for them to decide whether they want to continue using it or return back to what they originally were using. You don't want them to go right? 

Therefore, it's on you to keep 'em happy and interested. Think about it.

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If you want to know how to bring in customers (like, right now), follow this SaaS Marketing Blueprint and will be there!

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Why do Conversion Benchmarks Matter?

Conversion benchmarks give ideas on how your funnel is working against the conversion standards of the industry. From here, you can know which areas in the funnel are very low in performance and get ideas to beef up the conversion rates.

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Measurement of Performance

A benchmark lets you measure your performance from an industry standard that helps you determine where you are standing in the game of competition.

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Goal Setting

Now that you know the average conversion rates at each stage of the funnel, you can actually set improvement goals that make sense.

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Identifying Bottlenecks

Analysis of conversion rates can actually help pinpoint those drop-off points in the funnel and target action toward those specific areas.

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Key B2B SaaS Funnel Conversion Benchmarks

Although benchmarks are always variable by industry, the following are some general conversion rates to keep in mind:

1. Awareness to Consideration: 1% - 5% (provided your marketing efforts are effective)
2. Consideration to Conversion: 5% - 15% (May vary with lead quality)
3. Conversion to Retention: 70% - 90% (providing retention truly feeds long-term growth)

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Example: HubSpot

HubSpot has kept exhibiting much higher conversion rates than the industry average. Most of this excellent performance is achieved by producing useful content and communicating well to nurture leads in the funnel.

Conversion Benchmarks for Growth

Here’s what you need to focus on.

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Step 1: Analyze Your Current Funnel Performance

Begin with analyzing your funnel that sits currently in relation to some industry benchmarks. 

You can track the conversion rates at every stage of the funnel using analytical tools. Now you can identify places where your conversion rates are low against the benchmarks and make sure you upgrade those places first.

2. Refine Your Marketing Strategies

Now that you have found your weaknesses, it is high time to optimize your marketing strategy. Here are a few things to consider:

1. Increase Brand Awareness: Invest in content, social media, and SEO to raise awareness of your brand. Develop valuable resources related to pain points for your target audience.
2. Convert to Consideration: Use email campaigns and targeted content. Give leads reasons to have confidence in your brand by providing case studies and testimonials.
3. Streamline Conversion: Simplify sign-up, and remove friction. Invite actions by offering a free trial or demo.

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3. Set Realistic Goals

Now set realistic goals for improvement based on your analysis of the conversion benchmark. 

As you've assumed a conversion rate with being at the consideration to conversion is currently 5%, you might set your goal for improvement over the following quarter to be up around 7%. 

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This works well in keeping your attention focused and motivating if set properly.

4. Run A/B Tests

A/B testing is one of the most valuable tools when it comes to optimizing the funnel. Test different versions of your marketing assets, landing pages, and calls to action to find out what really speaks to your audience. The more you test and iterate, the more your conversion rate will improve over time.

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5. Monitor and Tweak

Maintain an eye on how your funnel is performing and be willing to dial in or pivot your strategy. Use analytics tools to get insight into key metrics and trends. Be prepared to pivot if you determine one of your strategies is just not cutting it.

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Conclusion

Using B2B SaaS funnel conversion benchmarks is important in helping you grow and optimize your marketing strategy. Understanding performance, realistic goals, and targeted improvement will ensure user engagement, as well as retention, are increased.

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The added all of this information becomes critical to a highly dynamic SaaS environment as it accelerates competition based on converting insights into competitive advantages. You get the chance to publish your SaaS business as a plank for sustainable success by adopting conversion benchmarks and continuous optimization of your funnel.

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Happy Marketing!

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