KPI Conversion Targets
What is a target?
A conversion target represents the desired conversion rate for a specific metric.
On the Growth Dashboard, you can set targets for any of the KPIs that belong to acquisition, onboarding and goals (which represent the first and most important steps of your customer's journey). That’s why reaching these targets will definitely help you achieve the growth of your business.
How to set a target?
You might already have a target in mind, because you know where the weak point of your onboarding process is, or you know that the “upgraded to pay” goal should be much higher. But what if you don’t know what targets to set, and with what values, in order to bring you growth? Here are some ideas of how to get started:
- Set targets by identifying the onboarding step with the highest drop-off rate.
See the dedicated report: “ How are accounts converting during the onboarding process?” and easily identify the onboarding step(s) with the highest drop-off rate.
- Analyze the evolution of your metrics.
As times pass, sometimes conversion rates can go down. Look at the timeline evolution of your desired metric, on a “percentage” graphic view mode, and see what things looked like in the past.
If you achieved a higher conversion rate in the past compared to the present, you can definitely get back to that value easily.
- Compare the onboarding conversion with benchmarks.
Here are a few numbers we’ve seen among our customers:
- B2C products that have onboarding rates under 20% struggle to grow while those that have it over 40% find it much easier to accelerate growth
- Good onboarding rates for self service free trial B2B products are between 40% and 60%. While freemium B2B products have lower onboarding rates, between 20% and 40%, as they compensate with the large volumes of signups.
- When it comes to converting to paid, great freemium products have rates over 10%. Free trial products will convert over 25% of the signups.
- Check your best performing marketing channel. If a marketing channel has an onboarding conversion rate that is higher than the average onboarding conversion rate, then all of the other marketing channels you can control are able to have at least the same conversion rate.
For example, the traffic sources report will show you the conversion rates for reaching the onboarding or different goals based on the five main Marketing Channels.
Or you can define your own marketing channel(s) and see its performance in this dedicated report.
Check target impact
Is it worth the effort to increase a conversion? How would the other metrics be impacted if I reached a target conversion?
With the click of a button, you can easily find the answer to this question in InnerTrends.
Based on the correlation between the selected metric to be increased and the other metrics, InnerTrends will show you what the new values would be if you managed to reach the target.
Not all of the metrics correlate perfectly with one another. That’s why we can have three correlation situations between the selected metric and any other metric (onboarding step or goal):
- Strong correlation - meaning that if you increase the selected metric, there is a high chance of increasing the other metric.
- Weak correlation - meaning that if you increase the selected metric, there is a low chance of increasing the other metric.
- No correlation - meaning that if you increase the selected metric, there is little to no chance of increasing the other metric.
Things to consider when analysing the impact:
- Goals can take place during or after the onboarding process. When a goal is reached during the onboarding, you’ll encounter this situation: increasing, for example, the second step of the onboarding might give you a higher chance of increasing that goal, compared with increasing the last step of the onboarding.
- Select an older, and as large as possible period of time, in order to have a higher statistical relevance.