For each metric, we explain what it means, why it\u2019s important, and how to measure it.<\/p>\n
What are CRO metrics?<\/strong><\/h2>\nCRO metrics are KPIs <\/a>that measure the effectiveness of conversion rate optimization<\/a> efforts.<\/p>\nRegularly tracking CRO metrics helps your business stay in the loop of user behavior and experience, arming you to make improvements and drive better conversion.<\/p>\n
From initial awareness of your product to becoming a loyal user, the SaaS customer journey is multifaceted, involving several critical conversion points, each point with different metrics.<\/p>\n
The major conversion points include:<\/p>\n
\n- Landing page conversions<\/a><\/li>\n
- Pricing page conversion<\/li>\n
- Free trial conversion<\/a><\/li>\n
- Expansion conversion<\/li>\n
- In-app micro conversions<\/li>\n<\/ul>\n
Key metrics and key performance indicators for measuring SaaS conversion rates<\/strong><\/h2>\nReady to start tracking conversion across different touchpoints<\/a> in the user journey?<\/p>\nHere are the 12 conversion metrics:<\/p>\n
1. Digital ad click-through rate<\/strong><\/h3>\nDigital Ad CTR measures the percentage of users who click on your advertisement compared to the total number that view the ad.<\/p>\n
This metric evaluates the effectiveness of your paid ads in engaging your target audience<\/a> and enticing them to take the next step.<\/p>\nTo measure digital ad click-through rate, divide the number of clicks your ad receives by the number of times the ad is shown.<\/p>\n![\"CTR-Cro-Metrics\"](\"https:\/\/images.storychief.com\/account_6827\/ctr-cro-metrics_b0ffee2ca4021ce42479c8e11eb4c2bb_800.png\")
<\/picture>Formula to calculate CTR and generate insights for conversion rate optimization.<\/figcaption><\/figure>\nFor example, if your ad is displayed 100 times and receives 5 clicks, your CTR would be 5%.<\/p><\/blockquote>\n
By tracking your CTR, you can pinpoint underperforming ads and make adjustments to your marketing strategy. This will help you maximize marketing spend while achieving your campaign objectives.<\/p>\n
2. Landing page CTA conversions<\/strong><\/h3>\nThe landing page conversion rate is the percentage of visitors who complete a desired action, such as signing up for a free trial or downloading a resource.<\/p>\n
Tracking CTA conversions<\/a> helps assess how well your landing page elements, messaging, and CTA placement influence visitors to take the intended action.<\/p>\n![\"Landing-Page-CTA-Conversion\"](\"https:\/\/images.storychief.com\/account_6827\/landing-page-cta-conversion_3b75be35da51c3d5d9d4a6404058a183_800.png\")
<\/picture>Formula to measure landing page conversion rate.<\/figcaption><\/figure>\n3. Mobile and desktop bounce rates<\/strong><\/h3>\nBounce rate is an important CRO metric that measures the percentage of visitors who navigate away from your site after viewing only one page, usually before they get to engage with the content on the page.<\/p>\n
A high bounce rate shows the pages in question don\u2019t meet user needs and expectations.<\/p>\n
For instance, an increased bounce rate on your features page suggests the page is not effectively communicating your product\u2019s value.<\/p>\n
If the content on your key pages is okay and you’re still experiencing high bounce rates, one way around it is to increase page speed\u2014slow loading time makes visitors spend less time interacting with your platform.<\/p>\n
Also, if there\u2019s a disparity between mobile and desktop bounce rates for the same page, that\u2019s your cue to dig further and optimize your website to be conducive regardless of device.<\/p>\n![\"Bounce-Rate-CRO-metrics\"](\"https:\/\/images.storychief.com\/account_6827\/bounce-rate-cro-metrics_018d7e3272de804668f508173816490b_800.png\")
<\/picture>Formula to measure bounce rate.<\/figcaption><\/figure>\nSuppose your website had 1,000 visitors in a given period. Of these, 300 visitors landed on a specific page (entrances), but 100 left without interacting further with the site (bounces). Your bounce rate is (100\/300)\u00d7100 = 33.33%<\/p><\/blockquote>\n
4. Customer acquisition cost (CAC)<\/strong><\/h3>\nCustomer acquisition cost <\/a>is a key metric that measures the total expense incurred in acquiring a new customer. CAC is important to measure because it helps you quantify if your sales and marketing efforts are efficient.<\/p>\nCalculate CAC by dividing the total cost of sales and marketing by the number of new customers acquired in a given period.<\/p>\n![\"Customer-Acquisition-CRO-metrics\"](\"https:\/\/images.storychief.com\/account_6827\/customer-acquisition-cro-metrics_ba01ff0cfcf0904d350bc7d0ebafe1bb_800.png\")
<\/picture>Improve customer retention<\/a> to justify your CAC and other CRO metrics.<\/figcaption><\/figure>\nFor example, if you spend $100,000 on sales and marketing and acquire 100 new customers, your CAC would be $1,000.<\/p><\/blockquote>\n
5. Free trial conversion rate<\/strong><\/h3>\nThis metric measures the percentage of users who transition from a free trial to becoming paying customers. Many factors influence the free trial conversion rate<\/a>, including product-market fit,<\/a> onboarding, and the trial period<\/a>.<\/p>\nBy regularly tracking this metric, you\u2019ll gain insights into user engagement and find ways to optimize conversions.<\/p>\n![\"SaaS-Free-Trial-Conversion-Rate-Formula\"](\"https:\/\/images.storychief.com\/account_6827\/saas-free-trial-conversion-rate-formula_d28fa91bbc3b3a9b7ba139414bdd94cb_800.png\")
<\/picture>Boost conversions by delivering tailored in-app experiences<\/a>.<\/figcaption><\/figure>\nIf your product had 500 free trial users in the previous quarter, and 100 of them converted to paid subscriptions, the conversion rate would be 100\/500 = 0.2 or 20%<\/p><\/blockquote>\n
6. Customer lifetime value<\/strong><\/h3>\nCLV<\/a> is a holistic metric that considers the long-term value a customer brings to your business. It factors in their purchasing patterns, average transaction values, and the expected duration of the customer’s relationship with your SaaS.<\/p>\nUnderstanding your CLV helps you optimize your conversion process to yield the best returns. For example, through CLV tracking, you can identify high-value customers who contribute significantly to your revenue and prioritize them when drafting your CRO strategies.<\/p>\n![\"Customer-Lifetime-Value-CRO-metrics\"](\"https:\/\/images.storychief.com\/account_6827\/customer-lifetime-value-cro-metrics_d2c86561aa2cc2f2a336cf134275a4f9_800.png\")
<\/picture>CLV formula.<\/figcaption><\/figure>\n7. Interactions per visit<\/strong><\/h3>\nEvery single interaction helps you better understand your visitors\u2014whether that\u2019s clicking a prominent CTA, watching videos embedded on your website, or sharing a blog post.<\/p>\n
The more you know what users like about your product and what they\u2019re looking for, the easier it gets to find ways to improve their experience<\/a> and your conversion rates.<\/p>\n8. Feature usage<\/strong><\/h3>\nThis metric measures the percentage of users who engage with specific features or functionalities of your product. By tracking feature usage, you\u2019ll see the parts of your tool users love the most and what parts receive less engagement.<\/p>\n
Armed with this insight, you can spot creative ways to boost user engagement and conversion.<\/p>\n![\"Features-and-events-dashboard-CRO-metrics\"](\"https:\/\/images.storychief.com\/account_6827\/features-and-events-dashboard-cro-metrics_1236bfc7cbc88fa30296ccd5c3bc3275_800.png\")
<\/picture>Track features and events<\/a> with Userpilot and spot ways to optimize important conversion metrics.<\/figcaption><\/figure>\nFor instance, if users are actively using a specific feature of your tool and there\u2019s an add-on or premium version, you can trigger contextual upgrade prompts and increase your upsell conversions.<\/p>\n
9. Revenue growth<\/strong><\/h3>\nKeep tabs on period\u2013over-period<\/a> revenue numbers to get a bird\u2019s eye view of how your business is performing.<\/p>\nIf revenue continues to grow, that\u2019s a sign that you\u2019re attracting the right customers, and a good chunk of them are moving smoothly through the customer journey.<\/p>\n![\"How-to-Calculate-MRR-Growth\"](\"https:\/\/images.storychief.com\/account_6827\/how-to-calculate-mrr-growth_77de0cb47397ca8c8380d49efa757d81_800.png\")
<\/picture>Formula to calculate Net Monthly Recurring Revenue (MRR) Growth rate.<\/figcaption><\/figure>\n10. Expansion MRR<\/strong><\/h3>\nWhile your MRR Growth<\/a> rate measures overall monthly recurring revenue coming from all sources, expansion MRR<\/a> calculates the increase in monthly recurring revenue resulting from existing customers upgrading their plans, adding additional features, or expanding their usage.<\/p>\n![\"Expansion-MRR-Rate-CRO-metrics\"](\"https:\/\/images.storychief.com\/account_6827\/expansion-mrr-rate-cro-metrics_0a8b233c85dba2e285bd725337e238c5_800.png\")
<\/picture>Turn your product into a growth<\/a> engine and increase expansion MRR<\/a>.<\/figcaption><\/figure>\nUse this metric if you want to strictly measure the general success of your account expansion activities.<\/p>\n
11. NPS and CSAT<\/strong><\/h3>\nCollect qualitative feedback on the user experience to know what they think about your product and what\u2019s motivating or hindering them from converting.<\/p>\n
NPS<\/a> and CSAT<\/a> surveys work best for this.<\/p>\nNPS measures customer loyalty and the likelihood of recommending your product or service to others. It focuses on the long-term relationship between the customer and your brand.<\/p>\n![\"How-to-Calculate-Net-Promoter-Score-(NPS)\"](\"https:\/\/images.storychief.com\/account_6827\/how-to-calculate-net-promoter-score-nps_7b7e93790ba8c157a1132a5ed69b51ec_800.png\")
<\/picture>NPS formula.<\/figcaption><\/figure>\nCSAT tracks customer satisfaction with a specific interaction or experience, such as account renewal, support interaction, or website visit. It focuses on the short-term feelings of the customer about a particular experience.<\/p>\n![\"CSAT-CRO-metrics\"](\"https:\/\/images.storychief.com\/account_6827\/csat-cro-metrics_12144d4c55df828eb060e929ea25b1fe_800.png\")
<\/picture>CSAT formula.<\/figcaption><\/figure>\n<\/div>\n12. Churn rate<\/strong><\/h3>\n
Regularly tracking CRO metrics helps your business stay in the loop of user behavior and experience, arming you to make improvements and drive better conversion.<\/p>\n
From initial awareness of your product to becoming a loyal user, the SaaS customer journey is multifaceted, involving several critical conversion points, each point with different metrics.<\/p>\n
The major conversion points include:<\/p>\n
- \n
- Landing page conversions<\/a><\/li>\n
- Pricing page conversion<\/li>\n
- Free trial conversion<\/a><\/li>\n
- Expansion conversion<\/li>\n
- In-app micro conversions<\/li>\n<\/ul>\n
Key metrics and key performance indicators for measuring SaaS conversion rates<\/strong><\/h2>\n
Ready to start tracking conversion across different touchpoints<\/a> in the user journey?<\/p>\n
Here are the 12 conversion metrics:<\/p>\n
1. Digital ad click-through rate<\/strong><\/h3>\n
Digital Ad CTR measures the percentage of users who click on your advertisement compared to the total number that view the ad.<\/p>\n
This metric evaluates the effectiveness of your paid ads in engaging your target audience<\/a> and enticing them to take the next step.<\/p>\n
To measure digital ad click-through rate, divide the number of clicks your ad receives by the number of times the ad is shown.<\/p>\n
<\/picture>Formula to calculate CTR and generate insights for conversion rate optimization.<\/figcaption><\/figure>\n For example, if your ad is displayed 100 times and receives 5 clicks, your CTR would be 5%.<\/p><\/blockquote>\n
By tracking your CTR, you can pinpoint underperforming ads and make adjustments to your marketing strategy. This will help you maximize marketing spend while achieving your campaign objectives.<\/p>\n
2. Landing page CTA conversions<\/strong><\/h3>\n
The landing page conversion rate is the percentage of visitors who complete a desired action, such as signing up for a free trial or downloading a resource.<\/p>\n
Tracking CTA conversions<\/a> helps assess how well your landing page elements, messaging, and CTA placement influence visitors to take the intended action.<\/p>\n
<\/picture>Formula to measure landing page conversion rate.<\/figcaption><\/figure>\n 3. Mobile and desktop bounce rates<\/strong><\/h3>\n
Bounce rate is an important CRO metric that measures the percentage of visitors who navigate away from your site after viewing only one page, usually before they get to engage with the content on the page.<\/p>\n
A high bounce rate shows the pages in question don\u2019t meet user needs and expectations.<\/p>\n
For instance, an increased bounce rate on your features page suggests the page is not effectively communicating your product\u2019s value.<\/p>\n
If the content on your key pages is okay and you’re still experiencing high bounce rates, one way around it is to increase page speed\u2014slow loading time makes visitors spend less time interacting with your platform.<\/p>\n
Also, if there\u2019s a disparity between mobile and desktop bounce rates for the same page, that\u2019s your cue to dig further and optimize your website to be conducive regardless of device.<\/p>\n
<\/picture>Formula to measure bounce rate.<\/figcaption><\/figure>\n Suppose your website had 1,000 visitors in a given period. Of these, 300 visitors landed on a specific page (entrances), but 100 left without interacting further with the site (bounces). Your bounce rate is (100\/300)\u00d7100 = 33.33%<\/p><\/blockquote>\n
4. Customer acquisition cost (CAC)<\/strong><\/h3>\n
Customer acquisition cost <\/a>is a key metric that measures the total expense incurred in acquiring a new customer. CAC is important to measure because it helps you quantify if your sales and marketing efforts are efficient.<\/p>\n
Calculate CAC by dividing the total cost of sales and marketing by the number of new customers acquired in a given period.<\/p>\n
<\/picture>Improve customer retention<\/a> to justify your CAC and other CRO metrics.<\/figcaption><\/figure>\n For example, if you spend $100,000 on sales and marketing and acquire 100 new customers, your CAC would be $1,000.<\/p><\/blockquote>\n
5. Free trial conversion rate<\/strong><\/h3>\n
This metric measures the percentage of users who transition from a free trial to becoming paying customers. Many factors influence the free trial conversion rate<\/a>, including product-market fit,<\/a> onboarding, and the trial period<\/a>.<\/p>\n
By regularly tracking this metric, you\u2019ll gain insights into user engagement and find ways to optimize conversions.<\/p>\n
<\/picture>Boost conversions by delivering tailored in-app experiences<\/a>.<\/figcaption><\/figure>\n If your product had 500 free trial users in the previous quarter, and 100 of them converted to paid subscriptions, the conversion rate would be 100\/500 = 0.2 or 20%<\/p><\/blockquote>\n
6. Customer lifetime value<\/strong><\/h3>\n
CLV<\/a> is a holistic metric that considers the long-term value a customer brings to your business. It factors in their purchasing patterns, average transaction values, and the expected duration of the customer’s relationship with your SaaS.<\/p>\n
Understanding your CLV helps you optimize your conversion process to yield the best returns. For example, through CLV tracking, you can identify high-value customers who contribute significantly to your revenue and prioritize them when drafting your CRO strategies.<\/p>\n
<\/picture>CLV formula.<\/figcaption><\/figure>\n 7. Interactions per visit<\/strong><\/h3>\n
Every single interaction helps you better understand your visitors\u2014whether that\u2019s clicking a prominent CTA, watching videos embedded on your website, or sharing a blog post.<\/p>\n
The more you know what users like about your product and what they\u2019re looking for, the easier it gets to find ways to improve their experience<\/a> and your conversion rates.<\/p>\n
8. Feature usage<\/strong><\/h3>\n
This metric measures the percentage of users who engage with specific features or functionalities of your product. By tracking feature usage, you\u2019ll see the parts of your tool users love the most and what parts receive less engagement.<\/p>\n
Armed with this insight, you can spot creative ways to boost user engagement and conversion.<\/p>\n
<\/picture>Track features and events<\/a> with Userpilot and spot ways to optimize important conversion metrics.<\/figcaption><\/figure>\n For instance, if users are actively using a specific feature of your tool and there\u2019s an add-on or premium version, you can trigger contextual upgrade prompts and increase your upsell conversions.<\/p>\n
9. Revenue growth<\/strong><\/h3>\n
Keep tabs on period\u2013over-period<\/a> revenue numbers to get a bird\u2019s eye view of how your business is performing.<\/p>\n
If revenue continues to grow, that\u2019s a sign that you\u2019re attracting the right customers, and a good chunk of them are moving smoothly through the customer journey.<\/p>\n
<\/picture>Formula to calculate Net Monthly Recurring Revenue (MRR) Growth rate.<\/figcaption><\/figure>\n 10. Expansion MRR<\/strong><\/h3>\n
While your MRR Growth<\/a> rate measures overall monthly recurring revenue coming from all sources, expansion MRR<\/a> calculates the increase in monthly recurring revenue resulting from existing customers upgrading their plans, adding additional features, or expanding their usage.<\/p>\n
<\/picture>Turn your product into a growth<\/a> engine and increase expansion MRR<\/a>.<\/figcaption><\/figure>\n Use this metric if you want to strictly measure the general success of your account expansion activities.<\/p>\n
11. NPS and CSAT<\/strong><\/h3>\n
Collect qualitative feedback on the user experience to know what they think about your product and what\u2019s motivating or hindering them from converting.<\/p>\n
NPS<\/a> and CSAT<\/a> surveys work best for this.<\/p>\n
NPS measures customer loyalty and the likelihood of recommending your product or service to others. It focuses on the long-term relationship between the customer and your brand.<\/p>\n
<\/picture>NPS formula.<\/figcaption><\/figure>\n CSAT tracks customer satisfaction with a specific interaction or experience, such as account renewal, support interaction, or website visit. It focuses on the short-term feelings of the customer about a particular experience.<\/p>\n
<\/picture>CSAT formula.<\/figcaption><\/figure>\n <\/div>\n12. Churn rate<\/strong><\/h3>\n
![\"CTR-Cro-Metrics\"](\"https:\/\/images.storychief.com\/account_6827\/ctr-cro-metrics_b0ffee2ca4021ce42479c8e11eb4c2bb_800.png)
<\/picture>![\"Landing-Page-CTA-Conversion\"](\"https:\/\/images.storychief.com\/account_6827\/landing-page-cta-conversion_3b75be35da51c3d5d9d4a6404058a183_800.png)
<\/picture>![\"Bounce-Rate-CRO-metrics\"](\"https:\/\/images.storychief.com\/account_6827\/bounce-rate-cro-metrics_018d7e3272de804668f508173816490b_800.png)
<\/picture>![\"Customer-Acquisition-CRO-metrics\"](\"https:\/\/images.storychief.com\/account_6827\/customer-acquisition-cro-metrics_ba01ff0cfcf0904d350bc7d0ebafe1bb_800.png)
<\/picture>![\"SaaS-Free-Trial-Conversion-Rate-Formula\"](\"https:\/\/images.storychief.com\/account_6827\/saas-free-trial-conversion-rate-formula_d28fa91bbc3b3a9b7ba139414bdd94cb_800.png)
<\/picture>![\"Customer-Lifetime-Value-CRO-metrics\"](\"https:\/\/images.storychief.com\/account_6827\/customer-lifetime-value-cro-metrics_d2c86561aa2cc2f2a336cf134275a4f9_800.png)
<\/picture>![\"Features-and-events-dashboard-CRO-metrics\"](\"https:\/\/images.storychief.com\/account_6827\/features-and-events-dashboard-cro-metrics_1236bfc7cbc88fa30296ccd5c3bc3275_800.png)
<\/picture>![\"How-to-Calculate-MRR-Growth\"](\"https:\/\/images.storychief.com\/account_6827\/how-to-calculate-mrr-growth_77de0cb47397ca8c8380d49efa757d81_800.png)
<\/picture>![\"Expansion-MRR-Rate-CRO-metrics\"](\"https:\/\/images.storychief.com\/account_6827\/expansion-mrr-rate-cro-metrics_0a8b233c85dba2e285bd725337e238c5_800.png)
<\/picture>![\"How-to-Calculate-Net-Promoter-Score-(NPS)\"](\"https:\/\/images.storychief.com\/account_6827\/how-to-calculate-net-promoter-score-nps_7b7e93790ba8c157a1132a5ed69b51ec_800.png)
<\/picture>![\"CSAT-CRO-metrics\"](\"https:\/\/images.storychief.com\/account_6827\/csat-cro-metrics_12144d4c55df828eb060e929ea25b1fe_800.png)
<\/picture>![\"Churn-Rate-formula\"](\"https:\/\/images.storychief.com\/account_6827\/churn-rate-formula_cbbb5e7b6d45cc80a63491ca6d22852d_800.png)
<\/picture>