CRO for Ecommerce vs CRO for SaaS

Introduction:

Conversion Rate Optimization is generally described by practitioners as one single discipline when, in fact, it is really two different subjects altogether – E-commerce and SaaS – that just happen to share the same name.

This misinterpretation explains why companies that run online ecommerce stores hire CRO groups that use the “SaaS” model and see zero change,s as well as why many SaaS companies have borrowed ecommerce CRO tactics but are optimizing for incorrect metrics.

It also shows how often teams are more focused on the tools they use rather than the final outcome of conversion optimization.

In this article, I will break down the areas of structure for the purposes of Comparing Ecommerce CRO & SaaS CRO: goals, funnels, metrics/tools, experimentation strategies, and ownership within the organization. Understanding these differences should allow you to stop using the CRO playbook for both E-commerce and SaaS.

The Key Distinction Between E-commerce CRO And SaaS CRO

The primary difference is this:

E-commerce CRO Optimizes a Single Transaction

SaaS CRO maximizes Customer Journey

All other aspects of CRO stem from this KEY distinction.

E-commerce CRO – What You Optimize

To Maximize The Number Of Completed Purchases per Visitor

The funnel is short, direct, and immediately revenue-generating.

Traffic –> Product –> Cart –> Checkout –> Purchase

That’s why searches like:

conversion rate optimization, ecommerce, and

conversion rate optimization for e-commerce

are predominantly commercially oriented.

High-Impact Methods for Optimizing Ecommerce CRO

The main areas utilized when optimizing e-commerce CTR include:

Clarity of Product Page

Visibility of Pricing/Discounts

Trust Signals (Reviews/Returns/Shipping)

Checkout Procedure Friction

Performance/Page Speed

Conversions in e-commerce usually take place in a single session.

E-commerce Metrics for CRO

Most Important Core Metrics for CRO

To achieve your goals with CRO, you will want to track five core metrics;

Conversion Rate, Revenue per Visitor (RPV), Checkout Abandonment Rate, Checkout Completion Rate, Average Order Value (AOV).

Each of these five metrics is tied to all others in terms of their associations.

SaaS CRO Is a Different Kind of Thing

Primary Objective

With regards to SaaS CRO, your objective is not to close a single sale. Instead, your Primary Objective is to facilitate the customer’s progression through a multi-step customer journey.

A typical SaaS funnel consists of the following stages: TRAFFIC, SIGNUP, ACTIVATION, ENGAGEMENT, CONVERSION, RETENTION.

Therefore, SaaS companies will be looking for…

CRO Agencies that specialize in SaaS, and/or

CRO Agencies with experience in helping SaaS companies increase their CR.

What You Are Optimizing in SaaS CRO

When it comes to SaaS CRO, the focus is not just on improving a single transaction; it’s about improving the entire process over time.

Improve Signup; Clarify Onboarding; Time to First Value; Adoption Rates for Features; Trial to Paid Customers. A user can convert weeks after their first touchpoint with your product; so, this will have a significant impact on how you approach experimentation.

Most Important SaaS CRO Metrics

The following are SaaS CRO metrics:

Activation Rate, Time to First Value, Trial to Paid Customer Conversion Rate, Adoption Rate of Features, & Retention & Churn.

Under the SaaS definition of conversion, you cannot declare conversion based on a single click of the mouse.

Different Structures Between E-commerce and SaaS Funnels

Ecommerce

Structure: Linear; Flow: Session-Based; Focus: Page; Revenue Generation: Immediate.

SaaS:

Structure: Non-Linear; Flow: Multi-Session; Focus: The Product; Revenue Generation: Delayed.

Therefore, you cannot simply copy/paste CRO tactics between the two types of funnels.

A/B Testing – A Different Approach to CRO

As it relates to the two types of CRO, A/B Testing is applied differently.

E-commerce A/B Testing usually focuses on:

the layout of product pages; Placement of CTAs on product pages; Presentation of Pricing; Steps to Checkout;

E-commerce A/B duration is typically longer because they typically receive high levels of traffic, have immediate outcomes, and have clear winners.

Tools are available for e-commerce A/B testing; commonly used software includes Optimizely

A/B Testing for SaaS Conversion Rate Optimization (CRO)

A/B Testing for SaaS focuses on:

Signup Flows

Onboarding Steps

Feature Exposure

In-Product Messaging

The challenges of SaaS CRO lie in the following areas:

Limited Sample Sizes

Longer Feedback Loops

Multiple Metric Evaluations

A SaaS A/B Test typically requires weeks rather than days to validate.

Tools: Same Categories, Different Methods

While many CRO tools overlap for e-commerce and SaaS, the way they are used differs significantly.

E-commerce CRO Tools

E-commerce CRO Tools typically focus on:

Funnel Performance Analytics

Heatmaps & Session Recordings

Checkout Process Optimization

A/B Testing Software

Tools are generally used to enhance e-commerce pages and processes.

SaaS CRO Tools

SaaS CRO Tools typically focus on:

Product Performance Analytics

Event Tracking

Cohort Analysis

Feature Performance Analysis

Tools are usually used to guide product decisions rather than just marketing decisions.

Heatmaps and Session Recordings: Contextual Differences

Search terms such as:

Website heatmap & session recording tool comparison

is used for both e-commerce and SaaS. However, how the data is interpreted can be very different.

E-commerce Heatmap Examples Include:

Understanding where on a website visitors stop paying attention

Improving website hierarchies

Reducing Checkout Confusion

SaaS Session Recording Examples Include:

Identifying Onboarding Friction

Identifying Confusion About Features

Watching Users Hesitate

While using a similar tool, the insights are different.

Which Agencies to Hire for Conversion Rate Optimization?

Many companies search for terms like:

conversion rate optimization agency

conversion rate optimization companies

conversion rate optimization consultant

However, the best profile for each agency will vary based upon the type of business to work together with PMs and engineers

How to optimise onboarding and activation

How to measure long-term effects

The Worst SaaS CRO agencies view SaaS as just a landing page issue

CRO Strategies Finding Saas CRO Strategies

E-commerce CRO strategies are targeted mostly at the page level with pages like:

Product pages

Category pages

Checkout steps

The goal is to eliminate any buyer “friction’.

SaaS CRO Strategies SaaS CRO Strategy Methodology

SaaS CRO strategy is primarily done at the system level across user journeys.

Users

Features

Behaviour-triggered events

The goal is to provide time to value for the customer as quickly as possible.

Is SaaS Pricing Higher Than E-Commerce Pricing for CRO?

Another common question is, “What is the cost for conversion rate optimisation services?” Generally speaking, SaaS CRO costs more than e-commerce for the following reasons:

Experiments take longer to complete

Attribution is harder

Multiple-team coordination

Requires product changes

The CRO for e-commerce is fast and transactional.

SaaS CRO Teams: Mistakes Being Made in Transitioning Models

Some common mistakes that e-commerce teams make as they move to SaaS include:

Too much focus on landing pages

Not enough focus on product activation

Measuring before you have provided enough time

Some common mistakes SaaS teams make when copying e-commerce’s CRO approach:

Over-testing copy

Ignoring friction in onboarding

Focusing on sign-up vs. retention

Unless there is organisation-wide alignment, CRO is not successful.

Ownership of CRO

E-commerce’s CRO is typically owned by:

Growth

Marketing

UX

Engineering helps execute CRO.

For SaaS, CRO ownership is divided among:

Growth

Engineering

Product

CRO is a cross-functional discipline.

How Do I Determine What Approach to Use?

Before answering these questions, it is helpful to ask:

Is revenue immediate or delayed?

Do users convert in one or many sessions?

Is the friction caused by the page or is it the product?

Does the marketing team control the funnel or the product team?

Your answers to these questions will help guide your understanding of whether to use e-commerce or SaaS models or if a hybrid of both is necessary.

Final Thoughts

CRO for e-commerce is different from CRO for SaaS.

E-commerce CRO drives decision-making, while SaaS CRO focuses on outcomes over time.

Once the team understands the difference between CRO models and the tools they use to complete their objectives, they will build systems that will generate conversions organically.

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