Freemium to paid conversion rates for SaaS businesses hover around the 2% mark on a good day. That means that 98% of your free users will stay that way forever—never diving into their wallet to provide you with the MRR that will lower your CAC.
Now, there are many methods you can use to try and increase your conversion rate. You can create a sense of urgency with a well-timed offer (e.g., “Get 50% off your annual plan, this weekend only”). Or you could work on your upselling, in order to close the penny gap. And these are both effectives strategies.
You put tons of time into creating your product, experimenting with acquisition channels, and honing your messaging.
Yet here I am, about to tell you that consumers are often swayed by such subtle nudges as the order in which you present your products, or the “serial position effect.”
If you think people might buy your products or services without checking out the competition first, think again.
More choice equals freedom, right?
Well, yes, but there’s a good body of evidence that the more choices presented to us, the less happy we are with the one we make.
What does that mean for conversions? Or retention? Or revenue?
It’s a cultural trope to “want what you can’t have,” but it’s also a principle based in decades of psychological research. That principle, scarcity, is incredibly powerful in marketing, persuasion, and conversion optimization—when done right especially in a free market with limited resources.
According to Econsultancy, up to 30% of ecommerce visitors use internal site search. Due to the increased level of purchase intent from searchers, they’re known to convert up to 5–6x higher than the average non–site search visitor.
Site searchers account for up to 14% of all revenue, and case studies have shown increased conversion rates of 43% from site search optimization.
Yet how many sites pay attention to site search? Too often, it gets ignored. This post walks you through opportunities to improve your internal site search.
“Never interrupt your enemy when he is making a mistake.” —Napoleon Bonaparte
When your competitors make mistakes, it makes winning so much easier. But what if it’s you who is making a mistake, while your competitors are off to the races? You won’t know until you figure out what your competitors are up to.
Knowing what the competitors are doing—how they’re thinking about the market, which tactics they’re using, how they’re crafting messages and design—can make all the difference in the battle for customers.
Every nonprofit that accepts online donations has a donation page. But there’s a big difference between having a donation page and having an effective donation page.
A few years ago, I launched a kind of “Groupon deal for musicians.” I gave away $1,250 worth of products, including recording time, iTunes distribution, and a guitar-string endorsement deal for just $69. The deal was good for only 100 hours, and there were just 5,000 packages available.
I had invested a lot into the campaign. Not only had I spent four months putting it together, but I had also put a significant amount of my personal savings into ensuring that this campaign was everywhere during those 100 hours.
Color is an essential part of how we experience the world. But do colors really matter for conversion optimization? Can a button color guarantee better performance for a call to action (CTA)?
No single color is better than another. Ultimately, what matters is how much a button color contrasts with the area around it.