How to Improve Conversion Rates

Conversion measures how efficiently people move from one step to the next, and growth depends on balancing conversion with churn. Hale says to focus on conversion when a business has a leaky bucket. He gives freemium SaaS conversion rates of 1.5% to 5%, averaging about 3%, and contrasts them with higher rates for products with strong purchase intent, such as TurboTax Online at 70%.

Hale uses designer Jared Spool’s knowledge spectrum to describe the gap between what users currently understand and what they need to know to use a product. Interface improvements can either give users more of the knowledge they need or make the product easier to understand. He suggests imagining a page with one button and asking what information would help someone choose to press it.

Hale’s seven questions cover the call to action, what the product is, whether it looks legitimate, who else uses it, how much it costs and what the catch is, and where users can get help. The call to action should lead users close to the product’s “magic moment,” when they understand its value. Clear descriptions, visible pricing, evidence of use, and easy access to help can reduce uncertainty.

For MeetingRoom.io, Hale points to competing calls to action, a seven-step carousel before users can make a room, and beta messaging that may make the product seem unready. He suggests making the main action clearer and helping visitors experience a meeting sooner. For Divjoy, he says the templates hide that the product generates a complete SaaS codebase; download counts help show that people use it, while missing FAQs and company information leave questions unanswered.