Calculate how an increased conversion rate can impact your MRR
Your current landing page conversion rate
This is your landing page conversion rate, i.e., what percentage of visitors click your call to action button or fill and submit the form.
On a click-through landing page, your actual conversion rate from visitors landing on the page to a free trial/subscription will be lower because not all visitors who click the CTA button will follow through with the signup.
We understand most startups don’t track it and don’t have the exact number, but since you’re here reading this, chances are it isn’t great, so start with 2%. It’s slightly below the SaaS industry median (3%*) but still not terrible.
* According to Unbounce 2021 conversion benchmark report.
You can read more here about key the insights from the report.
“What’s a good conversion rate?”
The median conversion rate for SaaS landing pages in 2021 was 3%.
However, it's more complicated because conversion rates vary wildly depending on traffic source, page type and product category.
Here we dig into the data from Unbounce conversion benchmark report to find out a realistic target for our conversion rate.
How much your MRR is growing every month?
Nothing remains static, and as long as you’re in business, you’re likely growing month over month.
According to ChartMogul, in the very early days (<$10k MRR), a SaaS startup grows on average by 4.4% every month. That’s 68.0% annually. So that’s the number we’re using as a baseline.
Your cost per click
We don’t want to go into the rabbit hole of paid ads metrics, so we keep it simple here and want you to show how conversion rate correlates with your cost per action (CPA).
Since you already entered your conversion rate (%), we only need your CPC ($), and we can calculate your CPA ().
You’ll see that the conversion rate is inverse to the CPA. E.g., if you increase the conversion rate by 100%, your CPA decreases by 50%.
Optimize your CPA, and you can step on the gas with ad spend and really scale your startup.
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