Lead generation can be challenging but converting trial users into paying clients is even more challenging! According to MarketingSherpa, a 7% conversion rate is average in SaaS businesses.
But what are the key influencers of that specific number? What are the key parts of a good customer acquisition process? Here are the 4 parts where you can screw up your whole customer acquisition process.
Tip 1: Never target your buyer personas with your ads
You have to know that a good customer acquisition process starts when you gather the contact information of a visitor the first time. When you generate leads.
If your ads don’t target your buyer personas (you have at least one, don’t you?), you will pay for leads that are not interested in your product. How could you increase your trial onboarding process’s conversion rates if the leads that are pouring don’t care at all?
Yes, if you don’t advertise to the right people, you will convert low-quality leads and you’ll never convert them into paying customers.
Tip 2: Don’t do lead nurturing!
According to Marketing Sherpa, “79% of marketing leads never convert into sales. Lack of lead nurturing is the common cause of this poor performance.”
Yes, you generate highly targeted leads but you don’t do automated lead nurturing. Therefore you will never know which leads are ready to buy and which aren’t. (This is why you should read this article on lead generation funnel.)
It means that you will offer your trial to those leads who are not in the right decision stage yet – so why would you think that you will be able to have a good customer acquisition process? Why would you think you can beat the 7% average conversion rate of your trial?
Tip 3: Give a terrible free trial experience
Oh yeah, now we arrived to this point. Let’s say that you attract the right visitors and convert the right leads and you started to use automated lead nurturing workflows for your customer acquisition process.
Now the time has come to give your leads a good experience with your trial. It means that your product has to be really valuable AND understandable. If you find that your leads don’t understand your product and – what’s even worse – they don’t understand the benefits you offer, you failed. You will lose a big percentage of your leads. And you will lose all the investments you made in your marketing funnel.
The desired outcome is a notion that is the most important part of your product. It consists of 2 parts: the required outcome and appropriate experience.
The required outcome is nothing more than the thing your client wants to do. If your trial can’t show the leads that they can achieve their desired outcome if they pay for your service, you lose.
In addition, if you can’t give your leads appropriate experience, you will also loose! This differentiates your service from other services. There are lots of similar solutions out there and these offers solve just the same thing you solve. Why would anyone choose you if you don’t differ?
So always track your leads activities when they are in your product. UX is one of the most important things after you validated your product and it solves a real problem. So please understand what Lincoln Murphy (the god of SaaS trials) says: “When it comes to your SaaS free trial, complicated isn’t cool…it kills conversions!”
Tip 4: Take your own success definition into account
And last but not least: your onboarding will have a big effect on your customer acquisition process. If you screw this up you will lose lots of valuable customers.
No, it’s not a technical onboarding. It’s not just you show your prospects your product. Not at all. It’s more than that! You provide value to them as fast as you can!
First of all, you should ask yourself: what do I need to tell the leads to give “initial success”? Not from your point of view. What is considered as success for your lead? If you can give them proper onboarding and make them reach their initial success, you won, because the next logical step will be to pay for your service!
You have to offer your users to pay for your service as they reach their success milestones. Therefore automation plays a big part here again! You can send in-app messages, emails at the right time to the right person with the right offer.
Tip 5: Never automate your customer acquisition process
As Lincoln Murphy said: “The Seeds of Churn are Planted Early”. It means that you have to have a holistic approach to your leads and clients in order to create a better performing onboarding process.
And if you can see the whole customer acquisition process, you will know which and where you should automate to be more efficient. But just for the sake of marketing automation, here are examples which should be automated:
- Lead nurturing – behavior-based email communication is an indispensable part of your activities
- Onboarding – trigger-based email communication and in-app messaging