Improving SaaS conversion rates with A/B testing with Sahil Patel @Spiralyze

saas.unbound is a podcast for and about founders who are working on scaling inspiring products that people love, brought to you by https://saas.group/, a serial acquirer of B2B SaaS companies.

In episode #16, Anna Nadeina talks with Sahil, CEO @ Spiralyze, about turning B2B SaaS websites into lead generation machines.

In the fast-paced world of B2B SaaS, optimizing your website’s conversion rate can be the difference between success and stagnation. Gone are the days of relying on gut instinct and expensive agency pitches to determine the perfect homepage or landing page design. 

Sahil Patel, CEO of Spiralyze, has made it his mission to turn B2B SaaS websites into lead generation machines through the strategic use of A/B testing. With a wealth of experience from his previous role as the founder and CEO of ER Express, Sahil understands the challenges and opportunities that SaaS companies face when it comes to optimizing their online presence.

When to Invest in A/B Testing

One of the key questions Sahil addresses is when the right time is for SaaS companies to invest in A/B testing. According to Sahil, the sweet spot is when a company is generating at least 100 conversions per month, whether that’s free trial sign-ups, demo requests, or contact form submissions. This threshold ensures that the data collected from A/B tests will be statistically significant and provide meaningful insights to drive improvements.

For companies just starting out, Sahil recommends focusing on optimizing the higher-intent conversion points, such as demo requests or free trial sign-ups, before diving into testing lower-funnel actions like webinar registrations or content downloads. By addressing the most valuable conversion points first, SaaS companies can maximize the impact of their A/B testing efforts.

Sourcing A/B Test Ideas and Guaranteeing Results

One of the unique aspects of Spiralyze’s approach is their ability to leverage data from over 34,000 websites that actively run A/B tests. This extensive database allows the Spiralyze team to identify winning test variations and apply them to their clients’ websites, guaranteeing a minimum 30% increase in conversions.

Sahil shares three simple yet effective A/B test ideas that any SaaS company can implement:

Optimizing Copywriting: Replace lengthy paragraphs with concise, skimmable bullet points and bold the most important words.

Leveraging Visual Cues: Test using a screenshot of your product instead of a lifestyle image, as the data shows this can lead to a 15-20% increase in conversions.

Making Quantitative Claims: Use a bold, quantitative headline that clearly communicates the value proposition, such as “Get paid 30% faster” or “Integrate third-party apps with 10% less effort”.

Navigating Inconclusive A/B Test Results

One of the challenges Sahil addresses is how to handle inconclusive A/B test results – a common occurrence in the world of conversion rate optimization. He explains that the industry average is that only 1 in 10 A/B tests will produce a statistically significant winner, with 8 being inconclusive and 1 being an underperformer.

Sahil’s advice for dealing with inconclusive results is to not get discouraged. Instead, he recommends:

1. Keeping the original control version as the default, as it has proven to perform at least as well as the new variation.
2. Gathering qualitative user feedback to understand why the new design may not be resonating as expected.
3. Continuing to test new ideas and iterate, as the path to optimization is rarely linear.

The Valleys and Peaks of Being a CEO

Sahil’s reflection on his experiences as a CEO, both at ER Express and Spiralyze, provides insights into the realities of entrepreneurship. He acknowledges that the CEO’s journey is not a constant upward trajectory, but rather a series of valleys and peaks – a sentiment that resonates with many founders.

One of Sahil’s biggest learnings was the importance of learning to “live in the valley” – to embrace the challenges and setbacks that inevitably arise, rather than being consumed by them. He also shares the painful experience of having a key partner lose faith in the dream, underscoring the critical role of recruiting and retaining the right team to build a successful venture.

The One-Second Test: A Simple Hack for Evaluating Homepage Effectiveness

Sahil shares a simple yet powerful advice on doing a “one-second test” that any SaaS company can use to evaluate the effectiveness of their homepage. The idea is to translate the homepage into a language that your test subjects are unlikely to understand, and then ask them what they think the company does. This removes the ability to rely on the text and forces them to rely solely on visual cues, providing insights into how well your homepage communicates your value proposition at a glance.

By embracing the power of A/B testing, leveraging data-driven insights, and learning from the ups and downs of the entrepreneurial journey, SaaS companies can transform their websites into lead-generation machines that drive sustainable growth.