Most SaaS Funnels Are Built for Tourists, Not Tenants

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Welcome to the 114th edition of The Growth Elements Newsletter. Every Monday and sometimes on Thursday, I write an essay on growth metrics & experiments and business case studies.

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Most startups celebrate top-of-funnel (ToFu) traffic.
They obsess over sign-ups.
They optimise conversion rates on landing pages.

But here’s the uncomfortable truth:

The pages look good.
The CTAs pop.
The signup is frictionless.

But then?
Nothing.

The trialer lands inside the product and... wanders.
No direction. No intent. No outcome.

And eventually, no conversion.

[1] The Difference Between Tourists and Tenants

• Tourists click around, explore features, and never return.

• Tenants activate, invite teammates, and build routines.

• Tourists want a demo. Tenants want progress.

• Tourists leave. Tenants expand.

The problem?
Most SaaS funnels are optimised for the first click.
Very few are optimised for the first value.

[2] Tourist Funnels Look Like This:

• “Get started for free” → no segmentation

• Generic onboarding flow for all user types

• Endless feature tours, tooltips, checklists

• No signal → no sales follow-up

• “Let them explore” = let them churn

[3] Tenant Funnels Look Different

Here’s what we’ve started building:

[1] Segmentation at Entry

[2] First Signal Within 60 Seconds

[3] Trial Routing → Sales → Expansion

[4] Onboarding = Conversion, Not Support

[4] Metrics That Tell You You’re Building for Tourists

If these numbers look too familiar, you’ve got a tourist funnel:

• Activation rate below 30%

• Time-to-value > 10 minutes

• Demo show-up rate < 40%

• Trial-to-paid < 10%

• High CAC, low payback, flat expansion

[5] What We’re Doing Differently Now

• Weekly dashboard showing trial-to-signal velocity

• Tracking “expansion-qualified trialers” as a pipeline metric

• Routing product signals directly into HubSpot for AE prioritisation

• Onboarding experiments focused on value outcomes, not UI tours

• Tighter scoring between Sales & Marketing to disqualify tourists early

Final Word

SaaS growth doesn’t come from visitors.
It comes from residents.
Build your funnel like it’s a home, not a hotel.

That's it for today's article! I hope you found this essay insightful.

Wishing you a productive week ahead!

I always appreciate you reading.

Thanks,
Chintankumar Maisuria