Your prospects have to go through many stages before they finally convert and make a decision to pay for your SaaS product. Every stage is crucial as that encourages prospects to move further in the conversion funnel so it’s important to provide them with the right messaging to the right marketing materials to better website experience to keep engaging with them while they are moving through different funnel stages.
Any confusion will cause you to lose your prospects in no time so you need to know what may be affecting conversions/revenue for your SaaS product and how you can fix this.
Here are the points I have listed that would help you understand conversions/revenue issues for your SaaS product.
- Product Issues – The first issue may be your product itself. If your product is not great, not solving your customers’ issues, not fulfilling what was promised then they are not going to pay for your product and you will keep losing customers.
- Low-quality Leads – It may be that you are not generating high-quality leads and that could be the reason why your conversions, as well as revenue, are low.
- Less Number of Leads – Even if you are generating good quality leads, not everyone is going to pay for your SaaS service or product as only 2-3% of prospects convert as per data and the rest will leave so it’s important to keep increasing the number of leads over time.
- Poor Support – This will surely affect your conversions/revenue as prospects do some research before buying any products on the internet, as well as they may contact your support team if any confusion they have so your support must be quick to solve their issues right away.
- No Nurture Activities – Once prospects become your customers, still you need to keep engaging with them as more engagement leads to more revenue that’s how it works. Nurturing helps to not lose customers, as well as helps:
- Increase the average transaction size
- Increase the frequency of transactions per customer
- Pricing Issues – It may be that pricing is kept too high so customers are switching to alternative products or not charging enough so not making money so you need to find the right balance between both.
- Website Issues – There are some website issues that don’t affect directly but still they do.
- Broken links that lead to the pricing page
- Pricing funnel issues, i.e., any error while completing the transaction
- Transactional errors
- Banks errors
- Other payment gateway errors
Conclusion
There could be various reasons that may be affecting conversions/revenue for your SaaS business, other than what I have listed here so you need to keep finding those and fix them. Spend some time daily with analytical tools to track the right users’ behavior and where they are having difficulties using your SaaS product, as well as do brainstorm daily or keep a brainstorming session with your team every week to pinpoint exact issues whether your product lacks anything or marketing not working or messaging is wrong or any support/pricing/website issues. Hope you overcome all these issues, win back your customers’ trust, and grow more.
