SaaS Benchmarking – Lead Cost and Pipeline Conversion

SaaS Benchmarking – Lead Cost and Pipeline Conversion

This post provides SaaS entrepreneurs, Business Managers and Investors with the top 75 best practice benchmarks for your SaaS and Software business. Within this chapter we are covering Benchmarks to get customers.
Benchmarks on the customer lifecycle are relevant for 2 phases – to get-a-customer as well as to keep-and- grow them.

The Get-a-Customer phase is divided into two stages to convert a lead into a paying customer:

  • Get-a-Lead – defining the cost to acquire a qualified lead across lead channels
  • Convert-a-Lead – defining the pipeline stages and conversion parameters to convert leads from one pipeline stage to the next – and finally into paying customers

 

Benchmarks to get leads

The Get-a-Lead phasedefines the cost to acquire a lead across lead channels.

Cost of Leads can depend on a number of factors:

  • Lead Channel
  • Industry Target segment
  • Share of Paid vs Unpaid Leads for the respective Lead Channel




Number of Monthly Visitors to Company Website by Industry

Number of monthly visitors of software industry is similar to other industries
COMPANY PROFILESERVICE OFFERINGSAASSWHWMIXALL PROCESSESAWARENESSSALES DEVELOPMENTCUSTOMER LIFETIME VALUEACQUISITION

 

Number of Monthly Leads by Industry

Number of monthly leads in software industry is similar to other industries
ALL PROCESSESAWARENESSSALES DEVELOPMENTCUSTOMER LIFETIME VALUEACQUISITION

 

Number of Monthly Opportunities by Industry

Number of monthly opportunities in software industry is similar to other industries
COMPANY PROFILESERVICE OFFERINGSAASSWHWMIXALL PROCESSESAWARENESSSALES DEVELOPMENTCUSTOMER LIFETIME VALUEACQUISITION

 

Costs per Lead by Industry

Software companies are paying higher costs per lead than other industries
CACCOMPANY PROFILESERVICE OFFERINGSAASSWHWMIXALL PROCESSESCUSTOMER LIFETIME VALUEACQUISITION

 

Benchmarks to convert leads into customers

The Convert-a-Lead phase is defined by pipeline stages and the conversion parameters to convert leads from one pipeline stage to the next – and finally into paying customers. Conversion Parameters can also depend on a number of factors,e.g.

  • Sales Model (e.g. Inside Sales vs Field sales)
  • Marketing Channels (e.g. Website, Social Media, Webinars, ..)
  • Availability of Freemium Models and Free Trials
  • Company Growth

 

Lead to Close Conversion Rate by Fremium Sales and Inside Sales

Conversion Rate from Fremium models is about ten times lower than from Inside Sales
ALL PROCESSESEVALUATIONFREEMIUM OFFERWIN RATEALL SALES TEAM ATTRIBUTESTEAM TYPEINSIDE SALES

 

Share of New Business Generated by Free Trials and Freemiums

More than half of the companies derive >25% of their new business through trial and freemium conversions
ALL PROCESSESEVALUATIONFREEMIUM OFFERTRIAL OFFER

 

B2B Sales Conversion Lead-to-Deal

Lead-to-Deal Conversion rates average 0.78% (Lead to Opportunity 13% – Lead to Deal 6%
ALL PROCESSESEVALUATIONWIN RATEPURCHASE

 

B2B Sales Conversion Rates by Channel

Lead-to-Deal Conversion rates average 0,78% – Referrals, Website and Social Meda are most effective channels
ALL PROCESSESEVALUATIONWIN RATE

 

Lead-to-Opportunity and Opportunity-to-Deal Conversion Rate

18% webinar attendees convert to opportunities but only 2.5% close to deals
ALL PROCESSESEVALUATIONWIN RATE

 

Closed-Won over Closed-Lost Opportunities Ratio

Events, lead lists and partners more likely to be closed-lost than others
ALL PROCESSESEVALUATIONWIN RATE

 

CTR, Like Rate, Conversion Rate, CPM, CPC in Facebook advertising

Facebook raw lead conversion rates is at a low 0.7%
ALL PROCESSESAWARENESSSOCIAL MEDIA

 

Engagement Rate, Follow Rate and Raw Lead Conversion Rate from Twitter

Twitter raw lead conversion rate is at 2.2%
ALL PROCESSESAWARENESSSOCIAL MEDIA

 

Cost per Engagement/Follower by Country from Twitter Advertising

Cost per follower in the USA is almost 3 times higher than in the UK
ALL PROCESSESAWARENESSSOCIAL MEDIA

 

CTR and Raw Lead Conversion Rate from LinkedIn

LinkedIn Raw Lead Conversion Rate is at a low 0.8%
ALL PROCESSESAWARENESSSOCIAL MEDIA

 

Conversion Rate by Pipeline Stages

Conversion rate increases down the pipeline
ALL PROCESSESEVALUATIONFREEMIUM OFFERTRIAL OFFERWIN RATE

 

Lead-to-Deal Conversion of Inside Sales Team in slow-growing companies (< 100% p.a.)

Inside Sales Reps in slow-growing companies convert 3.5% of Leads into Deals
FINANCIAL METRICSSALES COMP & QUOTADEALS WONGROWTHGROWTH RATEEVALUATIONWIN RATEALL SALES TEAM ATTRIBUTESTEAM TYPEINSIDE SALESTEAM PROFILESTRUCTURE

 

Lead-to-Deal Conversion of Inside Sales Team in fast-growing companies (> 100% p.a.)

Inside Sales Reps in fast-growing companies convert 1.1% of Leads into Deals
FINANCIAL METRICSSALES COMP & QUOTADEALS WONGROWTHGROWTH RATEALL PROCESSESEVALUATIONWIN RATEALL SALES TEAM ATTRIBUTESTEAM TYPEINSIDE SALES

 

Leave a comment

Your email address will not be published.