What is a good conversion rate for your business?

The median conversion rate for SaaS firms in 2020 was 3.0%. Check out these benchmarks for 15 other industries.

What is a good conversion rate for your business?

Conversion rate is one of the most important figures that marketers should track and seek to improve upon. The higher the conversion rate becomes, the more likely it is that your brand is executing a strong marketing play. Ideally, it will lead to more revenue and profit.

But there’s a not-so-secret catch. No one on the planet is scoring a 100% conversion rate. For certain business niches, a 5% conversion rate is already considered an excellent number. For others, 5% may look weak.

Fortunately, Unbounce’s 2021 Conversion Benchmark Report can help us better understand conversion rates across multiple industries. Using AI, the firm collected data from 44,000 Unbounce customer landing pages and 264 million visits, culminating with 33 million conversions. All of the data points were collected between November 2019 and November 2020.

Here’s a quick summary of the 16 industries mentioned inside the report.

The median conversion rates across 16 industries

The conversion rates mentioned here are from click-through pages (pages with specific CTAs such as ‘add a product to cart,’ ‘get a free trial,’ etc) and signup forms.


Overall

Click

Form

Agencies

2.4%

7.9%

1.9%

Real estate

2.6%

5.9%

2.1%

Software as a service (SaaS)

3.0%

10.1%

2.4%

Family support

3.4%

9.2%

2.2%

Business services

3.5%

8.6%

2.9%

Medical services

3.6%

5.9%

2.9%

Home improvement

3.8%

9.1%

2.5%

Travel

4.8%

12.3%

5.3%

Events & leisure

5.2%

11.4%

4.2%

Ecommerce

5.2%

12.6%

4.0%

Legal

5.4%

19.0%

4.3%

Fitness & nutrition

5.6%

12.9%

4.5%

Education

5.8%

12.1%

5.7%

Finance & insurance

6.2%

11.6%

5.8%

Media & entertainment

7.9%

11.0%

11.3%

Catering & restaurants

9.8%

21.2%

6.0%

See: Trends and data: 75+ powerful marketing statistics for 2021

SaaS conversion rates

Here are the conversion rates for SaaS companies in 2021, divided into seven industry subcategories:

  • Data and infrastructure - 1.8%
  • Business software - 2.0%
  • Cybersecurity - 2.6%
  • Analytics - 2.9%
  • Ecommerce platforms - 3.3%
  • Online media - 3.4%
  • Apps and devices - 6.2%

Unbounce reports that SaaS firms are mostly relying on paid search, driving traffic to click-through pages (46.4%) and form-fill pages (71.5%). While paid search is performing well on click-through pages, the conversion rate is very small when it comes to form-fill pages.

According to the report, the median SaaS form page converts just 2% of paid search visitors. Other channels perform much better, namely social (5.6%) and email (21%).

Unbounce says that SaaS marketers who already have visitors’ email addresses stand a good stance of getting more information by sending them to a form page. This also means that SaaS marketers should prioritize social ads over paid search for lead gen.

See: Content marketing for SaaS: report and benchmarks

Increase SaaS conversion rate with appropriate copy

The report also dives deep into what kind of copy works better to increase SaaS conversion rates. First, keep the landing page copy short with no more than 250 words. Longer ad copy doesn’t translate to a better conversion rate. In fact, there’s a risk of having fewer conversions with long copy.

Second, marketers should write copy as if they’re writing for an elementary or middle school audience age. The report found that more sophisticated and complex copy tends to perform worse for SaaS firms. However, readability doesn’t seem to matter for complex industries such as cybersecurity or data and infrastructure.

Third, marketers should try pumping their visitors up with lively, value-focused language that emphasizes the good results their products will deliver. The report found that landing pages with more emotionally positive words (e.g. “achieve project management harmony”) have higher page performance than those that seek to evoke negative emotions (e.g. “avoid project management torture”).

This is important because marketers increasingly used scare tactics in the past year. Unbounce recorded more words related to anger (+4.0%), sadness (+11.4%), and surprise (+3.5%) this year. Cybersecurity, in particular, is using 65.7% more words related to disgust.

The report also dives deeper into the other 15 industry categories. You can view it in full here.

The marketing game isn’t all just about crunching numbers, thought. It’s also about understanding the latest consumer trends. We’ve summarized a recent Google report about the shift in consumer behavior during the pandemic. You can check it out here.

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