Working to acquire, qualify and convert leads is a critical part of the business success of any SaaS (Software as a Service) business. However, trying to balance your company’s
different marketing, sales and retention efforts for your company can be challenging. In this
a good strategy is to organize those efforts using a SaaS sales conversion funnel.
(Saas Marketing Funnel).
A SaaS funnel is a model that graphically represents the most important stages along the customer journey. With the right tools in place, your SaaS conversion funnel can be tracked and optimized based on the results.
What is a SaaS marketing funnel?
In sales and marketing, the goal of a “funnel” is to qualify leads and convert them to
customers. Leads enter through the widest part, at the top of the funnel. A
as you work to convert them through the sales process, the funnel narrows. The
bottom of the funnel is where your most qualified leads become customers.
The traditional sales funnel is broken down into several stages as potential customers
interact with your brand:
– Discovery: This is where your potential customers become aware of your product and your
brand. They are discovering what you do and that they have a problem you can solve. This is the phase
where they do initial research, narrowing down the products and services that can help them solve their problem.
– Consideration: At this stage they make more serious evaluations, weigh the pros and cons of
buy, and compare it with your competitors.
– Interest: At this stage you have to persuade them to choose your solution over others they are considering. It’s all about building trust and providing valuable arguments to convince them.
– Conversion: This is where potential customers have finally decided that your solution meets their needs.
your needs. Finally, they become customers.
– Loyalty: Your work is not finished, you must implement actions to make their life cycle as customers as long as possible. For example, through promotions, new features, etc.
Difference with funnels in other industries
The steps described above are common to most marketing funnels. No
However, a SaaS initiative like yours requires a different approach than other industries.
For example, unlike other retailers, you don’t just want your customers to make a one-time purchase.
You have to keep convincing them of the ongoing value you bring them each month. Therefore,
loyalty has a particular importance.
In SaaS, the main focus should always be on maintaining and improving monthly recurring revenue and reducing churn.
As a SaaS business, you have to dedicate a part of your marketing efforts to retaining customers and gaining their loyalty so that they recommend you to their acquaintances and family members.
How to track a SaaS funnel
Tracking your SaaS funnel starts with understanding the various actions that drive prospects to give you
that drive prospects to take the next step in the sales process. This will allow you to, furthermore, to assign value to those actions.
Next, you need to implement monitoring and analytics tools to your website to know where users are spending their time and what they are spending their time on and what content helps drive conversions. With the help of a tool like Google Analytics you can set up conversion goals and actions on your site.
Every time a user completes one of those actions, such as clicking a button or completing a form, you’ll be able to see that event recorded in the reports and know the percentage of users who perform the
the desired action at each stage: this will be the conversion rate for that stage of the SaaS funnel.
You will then need to assign a value to the conversion actions. Depending on your knowledge of
your sales and marketing data, you will be able to estimate which actions lead to the most purchases and focus your efforts accordingly.
This information can be used to assign a euro value to each event triggered by a lead, giving you a clearer picture of the real value of each stage of the funnel.
Finally, be sure to set up other relevant metrics and monitor them, such as average subscription duration and lead value of the customer. This will help you determine your sales and also to optimize pricing.
In short, a SaaS Marketing Funnel will allow you to target your efforts according to well-established stages with specific content. When you market subscriptions to a service, it is vital to balance retention and acquisition efforts, and to identify new features that interest your customers to maximize
their value until the end of their lifecycle.
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