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Ask GH: What is a good conversion rate from visitor to registered user?
I know it's the answer that most people hate, but the right answer here is "it depends"... I've found visit to signup conversion rates vary hugely by referring source and business type. If you have a freemium SaaS product and most of your traffic is coming through organic referrals, I've seen it 30% or higher. But for clicks from banners, I rarely see it above 8%. When you focus on aggregate conversion rate, it discourages you from building new referral sources because the more aggressive you are at driving external customer acquisition, the lower your aggregate conversion rates will be.
What about this specific case //
We have an iOS app people use to mail handwritten cards (Felt). When we are_not running an ad campaign our conversion from a download to an account is 30%.
People who download the app can write a card and only have to create an account when they tap "checkout".
So does 30% sound good to you?
Yeah, that makes sense.. Thanks Sean! :)
Sean, what do you mean focus on "aggregate conversion rate"?
Aggregate conversion rate would be total new visitors to total signups. It's better to segment the conversion rates by referring source, landing page, user type, etc.
Fuck all these answers.
Look - Aim for 100%. Anything less is showing that you're not doing something right.
1. Do what's cheap and easy to implement.
2. The people that didn't convert, obsess with why. Shower with why. Sleep with why.
There are lots of tools to help you discover why. Every visitor matters.
Asking for benchmarks is asking to be average. You're better than that.
If you don't want to do it, then do something else that you can obsess about.
Your target audience is not 100% of all people (yet). Aiming for 100% often leads to lowest common denominator thinking, which can cause all kinds of damage to your margins, your limited time and resources, your product and its appeal to the users you're most interested in, and your ability to look past the % to the actual numbers.
But I still agree with regards to external benchmarks: Growth is about competing with your own results, not someone else's.
I like that approach. At BankFacil we think about it as "how can we double conversion rate". Then we group all traffic in clusters: per channel, product, landing, going down to the keyword.
We find conversona in fintech as high as 35% for cards vs 5% for escures loans.
It all depends on the product offer and the customer behavior for that product category. But at the end, I've seen internal benchmarking and hardball statements to be the most productive. Ask for the moon.
I love this answer so much!
Don't you want to know when you can move on to focus on other things? If you're always focus on reaching for 100%, seems like you'd loose out on creating new things.
Unfortunately, you have finite time to work on your business. Aiming for 100% would ignores marginal returns - meaning as you move from 0 to 100%, improvements become much, much more difficult and the return on your time drops. As Sean above mentions, it is probably better to take a systems view of your business and increase visitors at some point.
Remember, the goal of a business isn't to optimize conversion rate. Read the book "The Goal" to learn why optimizing local minima is a bad approach to business.
This is the way I think of these things, and other 'industry benchmarks.' Think of them like marathon times.
You can spend a lot of time obsessing over "what is a good marathon time" or looking at the finishing times of the top 10 runners. And worrying how 'good' you are compared to them. For the most part, this isn't a good use of your energy, especially at a startup - there are so many differences that is almost impossible to make a clean comparison.
There's way too many different factors at play. Age, running experience, genetics, weather, terrain, previous injuries, etc.
Instead, focus your energy on improving your own marathon time and controlling the things within your sphere of influence. Hell, for some people, just FINISHING the marathon is a big accomplishment!
TLDR - don't be too distracted by other people's conversion rates. Just keep improving your own metrics.
For SaaS asking for credit card before trial:
I don't really look at aggregate stats because you're going to find that most of your traffic sources don't convert at all, and those zero's ruin the average.
On the low end, I shoot for 1% conversion to trial.
On the high end, I have a targeted source that that converts at 6%. It's not scalable, but it's consistent.
In aggregate (again, take with a grain of salt) I typically see 0.75% to 2% sitewide with traffic sent to the marketing site (this excludes blog traffic, which converts at a much lower rate).
I've seen exactly the same
@sean said it well! I would also add that context matters a lot. I find that an audience from social media usually gives lower conversion rates than, for example, traffic from industry-related sites linking to a page that is relevant to them.
Intuitively you can bet that the more relevant your product or landing page is to the audience, the higher the conversion % should be.
What is good for one type of business/product/vertical/traffic source may be horrible for another type. And just getting registered users may be a bad metric, if they're not engaged/active. So it's impossible to say.
It really depends... I usually look at conversion rates only when I can't measure ROI (which is the metric that normally matters most).
BTW keep in mind that there is a hidden metric called "brand" that can affect the conversion rates a lot. That makes comparing 1 company to another almost impossible if they are not in the same stage of their development.
Try comparing brand new e-shop to Amazon for example.
The good thing is that if you work on your brand awareness, this hidden metric will grow with the company and will help you a lot in the future.
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