The sales funnel is something we are very familiar with at SaaS companies: A lead comes in, someone in a BDR/SDR role reaches out to them to initiate the qualification process. If there is a potential of a deal or a meeting could be set, the lead gets transferred to an account executive. After a negotiation phase quotes are sent and contracts signed. The ratio of leads to qualified leads to sales makes up the core of the sales funnel.
The signup process is just as important as the sales funnel if your business uses free trial path to get leads.
You can significantly reduce your inbound lead costs by knowing what a potential lead does after coming to your website.
How to analyze your sign-up process?
The first thing you need to do is go to your company’s home page. From this point on, you need to take note of each click, page and form that you will need to get through to complete the signup process and enter your app as a new user.
An example signup process could be:
1- Go to home page.
2- Click Start Free Trial.
3- Enter email.
4- Open your email client.
5- Click email verification link.
6- Go back to signup form.
7- Enter Name, Lastname, password.
8- Click next.
9- Enter business name, website, location, use case.
10- Click next
11- Enter phone number, title, business size.
12- Click finish.
Collecting the data:
Now, lets suppose we’ll take a look at what our signup funnel looked like last month. To start gathering our data, we need to go to our analytics provider and look at the unique new visitors that came to our home page. The number of new users here is the number of people who have completed step 1. Then, we look at the unique visitor count for the url that appears after they click the start free trial link. Usually, it will look like “www.yourcompanyname.com/signup”. The visitor count for this page is the number of people who completed step 2.
Then, we need to check our company database for the same timeframe and see how many people submitted their email address. This is the count of people who completed step 3.
Out of these people, we need to filter those who have verified their emails by clicking the link we’ve sent. The number we have here is those who completed step 5.
Now you can take a look at how many people reached the stages of your form by using a website tracking script. We can check how many people completed the process by looking at the number of new accounts or users.
|Step 1||Step 2||Step 3||Step 5||Step 8||Step 10||Step 12|
Ok, now we have all the data we need to analyze our sign-up process for this time frame.
Analyzing our data:
First, let’s take a look at how many of those new visitors had an intent to try our software. One of the ways we can find this with only the data we have available is by looking at how many people clicked the “Start free trial” button. Let’s assume that those that clicked the button at least have the interest to learn more about what we’re offering. (Those who clicked start trial)/(new visitors) = 728/8116 = 8.9%.
We can now look at the major steps of our sign-up funnel:
- Emails left / Those who clicked start trial = 652/728 = 92%
- Emails verified / Emails left = 423 / 652 = 64%
- Sign-ups complete / Emails verified = 314 / 423 = 74%
The ratios show us the percentage of users that went on to each next stage. Dropoffs in different sections indicate distinct inefficiencies.
What do the dropoffs between steps mean?
If the percentage of people who left their email after clicking the “Start free trial” was very low, that would indicate a problem with the page layout. Here, we have a 92% completion rate which is very good. This means the form field and what we want the user to do is obvious and there is no friction for the user.
Next, we see the biggest dropoff when we ask the user to leave the current page they’re on, open up their email and click the verification link. To help people continue their signup process without having to switch tabs we could move this step to the end of our funnel. Another solution would be to omit the email verification altogether.
The next big dropoff is when we ask the user endless questions about their business size, use case, and ask them to give us all this information without having a chance to see if they’re convinced yet. This is common practice to help the SDRs and BDRs as they are the ones who need to qualify these leads but creates friction on the end of the user who quickly wants to see if your solution is going to solve whatever problem you claim to solve.
Some of the tricks that can be used are not showing all the fields at once, having a progress bar to show it’s not too long and so on. Well, long forms cause friction and users just don’t like it.
If your product can demonstrate value by itself and basically sell itself, you don’t need any of this information. However, if all sales depend on the salesperson demonstrating the value rather than the product, you will need to get their contact information at some point.
When you consider that a single paid click can cost up to 20-30 dollars for certain keywords, it’s important to make the most of that person’s limited attention.
Looking at where the biggest dropoffs are gives great insight into which part of the process needs the most improvement and then different teams can try different designs, sequences, and hopefully forms with less fields to increase efficiency.