👉 Get Access to the FREE SaaS Lead Modeller
A consistent challenge for SaaS marketers is explaining and defending marketing budget requests and targets for Leads and sales conversions.
Scroll down to access my free Leads modelling calculator that will allow you to model CAC, required leads, target conversion rates and helps request a defensible marketing budget.
How many leads do I need to attract and convert for hitting my sales goals?
The good news: The SaaS Leads Modeller can help!
Simply input a few required key metrics and targets, and the calculator outputs required traffic volume and conversion rates for required MQLs, SQLs, target CPL and CPC.
Clarity drives success and before you start, know your lead funnel and conversion events.
What are your MQLs and when does a lead become an SQL in your funnel? Check out the streamlined funnel on the right column (“Know your Funnel“). Use as guidance only, every funnel requires its unique approach and can look different.
Click to Enlarge
Required inputs
- CAC per closed deal
- Closed deals
- Visit to demo conversion
- Demo to closed rate
Modelled outputs
- Required clicks/visits
- Minimum SQLs
- Minimum budget
- Cost per Lead
- Target CPC
CAC per closed deal
- CAC is crucial for tracking and optimising acquisition. It’s total sales and marketing spend divided by new customers. Shows spend per customer. Tweak marketing and sales to lower costs and improve efficiency.
- Calculate your specific CAC including marketing, sales, and people costs. Or input your target CAC.
Closed Deals
- Pretty simple. Enter new logos added monthly, quarterly, or annually. Only signed contracts. Ignore verbal commitments or LOIs.
Visit to SQL conversion rate
- The visit to SQL rate shows optimisation of your funnel’s top and middle. SQLs are ready to move forward.
- Define SQL criteria. Mature companies implement lead scoring.
- Input your rate.
SQL to Closed Deal conversion rate
- This rate indicates later funnel health. Shows Sales effectiveness, collateral quality, and targeting.
- Enter your SQL-to-Closed rate.
Clearly Define Your Objectives
Leave no room for interpretation. Vague goals result in scattered messaging and wasted budget.Conduct Thorough Keyword Research
Know your primary keywords driving traffic and at what cost.Leverage Google Ads’ Keyword Planner
It’s (kinda) free and helps forecasts cost-per-click trends. It suggests new keywords and displays competitor bids.Calculate Your Target Click Amount
Separate total clicks by conversions to reveal your average clicks-per-conversion. Multiply that number by your average cost-per-click to determine your required budget.
B2B SaaS funnel conversion benchmarks by channel.
Note: Benchmark data and table layout taken from FirstPageSage (Nov. 2023). Please use for reference only.
B2B SaaS funnel conversion benchmarks by channel
A consistent challenge for SaaS marketers is explaining and defending marketing budget requests and targets for Leads and sales conversions.
Scroll down to access my free Leads modelling calculator that will allow you to model CAC, required leads, target conversion rates and helps request a defensible marketing budget.
How many leads do I need to attract and convert for hitting my sales goals?
The good news: The SaaS Leads Modeller can help!
Simply input a few required key metrics and targets, and the calculator outputs required traffic volume and conversion rates for required MQLs, SQLs, target CPL and CPC.
Clarity drives success and before you start, know your lead funnel and conversion events. What are your MQLs and when does a lead become an SQL in your funnel? Check out the streamlined funnel below. Use as guidance only, every funnel requires its unique approach and can look different.
Click to Enlarge
Required inputs
- CAC per closed deal
- Closed deals
- Visit to demo conversion
- Demo to closed rate
Modelled outputs
- Required clicks/visits
- Minimum SQLs
- Minimum budget
- Cost per Lead
- Target CPC
CAC per closed deal
- CAC is crucial for tracking and optimising acquisition. It’s total sales and marketing spend divided by new customers. Shows spend per customer. Tweak marketing and sales to lower costs and improve efficiency.
- Calculate your specific CAC including marketing, sales, and people costs. Or input your target CAC.
Closed Deals
- Pretty simple. Enter new logos added monthly, quarterly, or annually. Only signed contracts. Ignore verbal commitments or LOIs.
Visit to SQL conversion rate
- The visit to SQL rate shows optimisation of your funnel’s top and middle. SQLs are ready to move forward.
- Define SQL criteria. Mature companies implement lead scoring.
- Input your rate.
SQL to Closed Deal conversion rate
- This rate indicates later funnel health. Shows Sales effectiveness, collateral quality, and targeting.
- Enter your SQL-to-Closed rate.
Clearly Define Your Objectives
Leave no room for interpretation. Vague goals result in scattered messaging and wasted budget.Conduct Thorough Keyword Research
Know your primary keywords driving traffic and at what cost.Leverage Google Ads’ Keyword Planner
It’s (kinda) free and helps forecasts cost-per-click trends. It suggests new keywords and displays competitor bids.Calculate Your Target Click Amount
Separate total clicks by conversions to reveal your average clicks-per-conversion. Multiply that number by your average cost-per-click to determine your required budget.
B2B SaaS funnel conversion benchmarks by channel.
Note: Benchmark data and table layout taken from FirstPageSage (Nov. 2023). Please use for reference only.
B2B SaaS funnel conversion benchmarks by channel
Next steps and further reading
Once you have set your targets and required sales and marketing budget, review your organisation’s Sales approach to moving leads down the funnel and optimise how to increase demo requests for your SaaS.
