How To Budget SaaS Advertising & Marketing
Determining a marketing and advertising budget isn't easy, so we've brought together industry benchmarks and our own best practices to give you a leg up.
Scroll down to follow our wizard that walks through each budgeting step or just jump straight to our results.
Ok, first thing is first, let's get some initial information.
Now we're going to talk conversion and retention.
Do you use trials or freemium?
Can potential customers try before they buy or do they need to purchase without a trial?
Trial Conversion Rate
We want to understand how many trials or freemiums convert into paid accounts. If you have 10 trials and on average 1 becomes a paying customer, you have a 10% Trial Conversion Rate.
User Churn Rate
Our goal here is to understand how many paid accounts you lose per month on average.
It’s vastly cheaper to retain customers than it is to acquire new ones according to a now famous Bain & Company study, and the lower your churn rate, the less it requires to reach goals.
Next, we want to look at traffic from paid advertising.
Average Ad Click-Through Rate
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