We’re big into measurement here at Dasheroo. We use tools like Mixpanel, Optimizely, Google Analytics and our own businessdashboards to measure results and instrument improvements. This is particularly true in what we call the ‘auto-convert’ side of the house. These are the type of low ARPU users that we need to move through the conversion funnel without the need of sales assistance.
So I thought I’d share our current sales funnel metrics. First, as a business freemium model we do not pay for advertising! Our traffic is driven by inbound marketing – search engine optimization, lots of content marketing, an active social media presence and co-marketing with our partners like Salesforce, Infusionsoft and Shopify. Plus that great viral growth from positive word of mouth and just a great product.
Once these people visit our site, here’s how our conversion funnel stacks up:
- 10.4% of users sign up for a free account. Yes, over 10%! That is amazing, as at other freemium businesses we’ve run we would have been thrilled to get 2-3%! And this isn’t just a blip, we have maintained this signup conversion rate for months.
- 65% connect an application and create a dashboard (this is trending up, April was 70%). That means that healthy signup rate is also driving qualified users!
- And that 65% connect & create their dashboard 2 minutes or less. Wow, that’s pretty fast.
- 2.1% convert to a paid account. Our goal is 3%, so we have some work to do!
- with a ‘DTP’ (Days to Pay) of 29 days (this is trending shorter; April was 26.5 days)
- And an ARPU of $24.26
What’s important is to establish both what your SaaS conversion metrics are, and then set and measure against goals. At the very start of your SaaS business you may not know exactly what the goals should be, but you should definitely know what the conversion metrics are. Then measure and instrument your business to show month over month, or at least quarter over quarter gains. What are your metrics for your SaaS business, share them!