SaaS Digital Marketing Benchmarks

In this article, we’ll explore key benchmarks for SaaS businesses across various digital marketing channels, such as SEO, paid ads, and customer acquisition costs. We'll provide insights into the average performance metrics in each area for you to compare your results with and identify areas for improvement. 

To begin with, let’s have a quick overview of the stages of customer acquisition in SaaS and the typical channels used at each stage.

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Each marketing channel impacts ROI differently, and all of them play an important role in your strategy.

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Let’s have a closer look at the benchmarks for each marketing channel to better understand their performance.

SaaS SEO Benchmarks

1. SEO Conversion Rate for SaaS

• Median conversion rate: 2.45%
• Median number of impressions: 95.82K

2. Organic Clicks

• Median number of organic clicks: 1.05K 

3. Organic CTR (Click-Through Rate)

• Median CTR: 1.25%
• Expert Tip: Organic CTR is influenced by factors like search intent. Optimize for featured snippets to enhance visibility and SEO performance, even if clicks aren’t guaranteed.

4. Average Position in Google Search Results

• Median average position: 33.44 

5. Monthly Sessions

• Median number of sessions: 4.12K
• Median conversion rate: 2.09%

_{Source: Databox}

6. Average ROI for SaaS SEO

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7. Average Organic Cost Per Lead for SaaS

• Median number of organic CPL is 164$ 

8. Average Session Duration for SaaS

• Median session duration is currently at 4:26

9. Engagement Rate

Median engagement rate for SaaS websites is 61%.

10. Change in Organic Traffic

The annual change in traffic for SaaS websites is 41% on average. 

_{Source: FirstPageSage}

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If you’d like to further optimize your website, this table will help you to evaluate the performance of different page types on your website:

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The Impact of Content Marketing on SEO

A research of Content Marketing trends by Stratabeat suggest that you can significantly improve your SEO results by paying attention to the following:

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Audience Segmentation:
Websites that segmented their target audience (e.g., by industry) saw significant improvements in their SEO performance. On average, these websites increased their Google Top 10 organic ranking keywords by 43.4%, compared to a 37.6% decline for those that did not segment their audience. 

Segmented websites also saw a 28.2% increase in organic traffic, whereas those without segmentation had only a 1.8% increase. 

Furthermore, these segmented websites experienced a 158.5% growth in referring domains (websites linking back to them), which was 5.1 times higher than websites without audience segmentation.

Free Online Tools:
Websites offering free tools like ROI or TCO calculators boosted their SEO metrics, with a 33.0% increase in Google Top 10 keywords, while those without tools saw a 28.9% decline. These tool-offering websites also achieved a 28.2% growth in referring domains.

Blogging Frequency:
Sites that published 9 or more blog posts per month saw a 41.5% year-over-year increase in organic traffic, compared to just a 21.3% increase for those posting 1 to 4 times per month. These high-frequency bloggers also enjoyed a referring domain growth rate that was 366.3% higher than those blogging less frequently.

Blog Length:
Blogs with posts averaging 2,000 words or more saw an organic traffic growth rate 293.3% higher than blogs with shorter posts under 1,000 words. Longer blog posts also led to a referring domain growth rate 562.6% higher than those with shorter content.

Use of Custom Graphics:
Websites that used custom graphics in their blogs experienced a 26.8% increase in organic traffic, compared to a 13.0% increase for those using stock images or no images at all.

Top Performing Websites:
The top 10% of websites in the study saw a 39.3% average increase in Google Top 10 keywords, compared to a 19.4% average increase across all websites.

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SaaS Benchmarks Paid Ads

Monitoring the performance of ad campaigns helps ensure you're getting the best return on investment (ROI) and not overspending on customer acquisition. 

The average Paid Ads  ROI for SaaS is 199%.

The average paid Cost Per Lead is approximately $310.

_{Source: FirstPageSage}

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‍Google Ads SaaS Benchmarks

• Spend: $1,978.68 (median)
• Average CPC: $1.52
• CTR: 4.28%
  Despite higher costs, Google Ads deliver the highest CTR, showing strong engagement and making it a top-performing channel for SaaS.
  

Facebook Ads SaaS Benchmarks

• Spend: $1,906.79 (median)
• Average CPC: $0.66
• CTR: 1.43%
  Facebook Ads spending is similar to Google Ads, but with a lower CTR. Improving audience targeting could enhance engagement.

Microsoft Ads SaaS Benchmarks

• Spend: $2,836.72 (median) — the highest of all platforms
• Average CPC: $1.04
• CTR: 2.87%
  Microsoft Ads saw significant spending, surpassing other platforms, with competitive CTR and CPC values close to Google Ads.

LinkedIn Ads SaaS Benchmarks

• Spend: $1,878.82 (median)
• Average CPC: $4.04 — the highest of all platforms
• CTR: 0.62% — the lowest engagement
  LinkedIn Ads are costly due to their specific professional audience, but they have the lowest CTR among the platforms analyzed.

_{Source: Databox}

Email Marketing Benchmarks for SaaS

Email marketing, with its 784% ROI remains one of the most effective channels for attracting and retaining customers for SaaS businesses.

According to HockeyStack Labs, email marketing contributes to 1.3% of total MQLs in SaaS.

Tracking these benchmarks helps improve your strategy to build stronger relationships with your audience and make the most out of your email marketing efforts:

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_{Source: Webxf}

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If your unsubscribe rate is significantly higher than the benchmark, consider these common reasons why people may be opting out of your emails:

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As for the email CTR in SaaS, here’re the benchmarks to consider:

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SaaS SMM Benchmarks

Social media remains a popular channel where people choose to interact with companies. The  key metrics are engagement rate, follower growth, click-through rate, and conversion rate from social channels. Here's what we know about social media marketing (SMM) for SaaS:

1. Facebook Pages
Despite claims that Facebook is no longer effective, data shows that SaaS companies can still find value in the platform. Facebook pages outperform LinkedIn in terms of reach and engagement.

• Organic Reach: Facebook Pages had a median reach of 2.39K in November.
• Page Engagements: The median number of engagements on Facebook Pages is 140.

2. LinkedIn Company Pages
LinkedIn is known for reaching professional audiences and decision-makers, making it a great tool for brand promotion and sales. 

• Unique Impressions: LinkedIn Pages had a median of 1.36K unique impressions.
• Reactions: The median number of reactions on LinkedIn Pages is 76.5.

Lifetime Value and CAC SaaS Benchmarks

LTV (Lifetime Value) and CAC (Customer Acquisition Cost) can vary significantly depending on the type of SaaS company, its pricing model, target market, and customer journey. Here is detailed data that includes LTV to CAC ratios across different SaaS segments.

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Source: FirstPageSage

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Saas Churn Rate Benchmark

The churn rate is a metric that measures the percentage of customers who stop using a product or service within a specific time period. It's a critical indicator of customer retention and can directly impact the growth and profitability of a business, especially in the SaaS industry. A high churn rate suggests that a company is losing customers faster than it is acquiring them.

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The typical churn rate for SaaS companies is often reported to be around 5%, but to maintain a healthy and sustainable business, you should aim for a churn rate of under 3%. 

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Source: Gong

Conversion Rate Benchmarks for SaaS

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Source: FirstPageSage

Boost Your SaaS Business’s Performance Benchmarks with Promodo

Promodo is a full-funnel digital agency, which means you can count on our experts no matter which metrics you would like to improve for your SaaS company. See how we helped other software companies meet their business goals:

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FAQ

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1. What are SaaS benchmarks, and why are they important for B2B companies?

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SaaS benchmarks are key performance indicators that help SaaS companies measure their success against industry standards. These benchmarks are crucial for B2B SaaS companies as they provide insights into areas like customer acquisition, churn rates, and marketing efficiency, allowing businesses to identify strengths, spot weaknesses, and make data-driven decisions to optimize their marketing strategies.

2. What are some common B2B SaaS marketing benchmarks for marketing performance?

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B2B SaaS marketing benchmarks typically include metrics such as lead conversion rates, customer acquisition costs (CAC), and the lifetime value (LTV) to CAC ratio. Monitoring these benchmarks helps B2B SaaS companies assess the effectiveness of their marketing efforts, ensuring that they are spending wisely and reaching their target audience efficiently.

3. How do SaaS marketing benchmarks differ across various segments of the SaaS industry?

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SaaS marketing benchmarks can vary widely depending on factors like target audience, product type, and sales model. For instance, B2B SaaS companies may have different benchmarks compared to B2C, especially when it comes to CAC and LTV due to differing customer lifecycles and deal sizes. Comparing your performance to relevant SaaS industry benchmarks helps set realistic goals based on your specific market segment.

4. What is a good churn rate for a SaaS company, and how does it compare to SaaS churn rate benchmarks?

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A good churn rate for SaaS companies is generally considered to be under 3%, though many companies hover around 5%. SaaS churn rate benchmarks are essential for understanding customer retention performance; staying below industry averages can signal strong customer satisfaction and product fit, while higher churn rates suggest the need for better customer engagement strategies.

5. How do B2B SaaS marketing benchmarks influence budget allocation?

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B2B SaaS marketing benchmarks help companies determine how to allocate their marketing budgets more effectively. By understanding metrics like CAC and the LTV to CAC ratio, SaaS companies can prioritize spending on high-impact marketing activities that deliver the best return on investment, leading to improved customer acquisition and retention rates.

6. What are the most critical SaaS company benchmarks to track for sustained growth?

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Key SaaS company benchmarks include metrics like monthly recurring revenue (MRR), customer acquisition cost (CAC), customer lifetime value (LTV), and churn rate. These benchmarks provide a comprehensive view of a company’s health, guiding strategic decisions in marketing, sales, and product development to ensure sustainable growth in the competitive SaaS landscape.

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