The increasing free trial conversion rates could help businesses sustain themselves. It includes five strategies to improve conversions by turning a free user into a profitable customer. This document also highlights the possibility of freemium in product-driven growth (PDGs). Free trial or premium products may help you acquire, engage and retain customers. The success of free trials and premium products depends on how your customers adopt your business model and growth plan.
What is a free trial conversion rate?
Free trials give customers free use of the software for a limited time. It aims to help them experience the value of the product.
Free trials can last anywhere around 7-6 weeks. The more complex the product, the longer the free trials will last. You should, however, be able to provide sufficient money to make the whole thing run smoothly. Which is better – an unlimited free trial or a limited free trial?
With a free trial, users have all the features you offer to select their plans based on their requirements and needs. The problem remains. Like most free samples, there will be people trying to play a software gamer for free. Many will use multiple accounts with several e-mails to use your products for free and do not want purchase plans. Free limited functionality trials are only available to a small number of users to prevent the possibility of misuse. The problem is that you limit yourself purely to the markets that might interest these features.
Which is better Opt-in or Opt-out?
Opt-in trials generate more interest as they don’t need much product investment. If the user gets activated during the free test period, the user will generally stay active for the entire period. You must invest much more time learning how to use your services for a new employee. Consequently, this resulted in lower conversions compared with opt-out tests. Opt-out trials are difficult because there is a lower user base. Nobody is interested in using your credit card information if you do not know it.
How to accurately measure your free trial to the conversion rate for SaaS?
Even though you only need to do simple math to calculate your Free Trial conversion rate, there’s nothing you want to generalize to the whole customer base. You must start by defining personas, plans, sizes, etc., in the audience. – so you understand the average conversion rate for each segment and the conversion rate. Determine which segment has the most value to you. Userpilot allows you to customize welcome screens for products that will help you segment them into segments.
You get conversions from the trial to the paid customer if you cannot pay for a trial. For an accurate free trial rate, use the following calculation: Trial conversion rate = number of users who pay the trial fees. Typically you’ll see 500 trial users convert into paying clients. In the example above, you would have a conversion rate of 90 500 = 180 0%.
Why is a free trial conversion rate important for your SaaS business?
This metric allows you to determine whether the product offers any value and why they are paying for them. The better your SaaS trial-to-pay conversion rate, the more profitable you are. With the most effective SaaS conversion ratio and the most favorable LTV: CAC ratio coupled with the highest retention rate, it becomes an incredibly sticky product that nobody is interested in leaving. It’s time for a bigger deal! Another critical reason why free trials can be helpful is that there is an abundance of product qualification leads that can be used for a sales campaign.
What is an excellent free trial conversion rate?
It is difficult to say if there are good free test conversion rates because they vary widely. A B2C company that sells freemium products has a much different
conversion rate from a B2C company that offers opt-out trials for free. Benchmarking conversions and the average number of hits for the best brands is tricky because the difference in sales is enormous. Slack recently converted 80% of its freemium users to a subscription program that Slack partnered with for a new product. A company that offers opt-out free trials can achieve more than 60%!
How to improve your SaaS free trial-to-paid conversion rate?
How can you improve free trial conversion rates? This is the most effective way of growing an organization’s revenue. It boils down to selling a free trial – to attract users and give them an engaging experience. It is more challenging than it seems. When 8% conversion occurs, 92% of prospects don’t turn into customers.
Sometimes the problem comes from an uninspiring user experience like this.
Interactive walkthroughs
A walk-through allows your users to understand your brand for the first time. It’s a different type of product tour because it follows a user’s experience rather than an extensive feature list. Typically, they appear as overlays on your website and tell users what specific ways they should get started with your product and get to their active stages. You will have to understand the different stages for activation for every user segment. Here’s another example of the excellent onboarding done by Rocketbot. The integration of the interactive walkthrough in Rocketbot’s products has tripled Rocketbot activation rates!
Personalized Your Checkout Page
A branded checkout is of huge help for eCommerce businesses o all kids. Customers will notice your brand, recognize it and trust it to make the payment.
Additionally, it is essential to optimize your checkout and simplify as much as possible. The most efficient way to do this is by collaborating with an eCommerce solution. An example in this regard is PayPro Global, an all-in-one eCommerce.
partner offering users strong, robust tools sure to improve your conversion rates and boost sales.
Checklists
Checklists are another excellent way for your customers to initiate and keep the activating phase of the process in mind. The initial onboarding processes aren’t developed, but you should always do a thorough test to improve your skills.
Userspilot provides many ways to convert more people into customers.
How can I convert free trial users into paid subscribers?
Ensuring the product’s perceived value is always higher than its cost and friction compared to the product during a trial period. Let’s talk about the best strategy for improving free trial conversion.
Remind Users to Upgrade and Why Every Chance You Get
Some companies have made the error of waiting for the end of a trial before getting users to upgrade a system, which can be late. You will be tested for 30 days. Once the trial runs, the user is prompted by email to download the free trial. Upon hearing this message and taking advantage of the offer, the customer may be out for several days without any goods
Use Checklists to Motivate Users to Stay Around
The checklist will make the product harder to use, allowing the customer to use it more often. One way to address these dilemmas is to reduce wasted expenses.
When a customer has completed significant progress or gained fast wins, it is unlikely he will opt out of your product and follow a similar set of steps with another competitor. This is their goal. Checklists have the psychological ability to boost the probability that the closer one is to finish it, the greater the chances of that process achieving completion.
Optimize your trial user journey for conversions
Marketers are always trying to emulate the best practices of companies. Nevertheless, it is essential when looking for best practices that complement each other and provide an optimal user experience. How can you do it? Put yourself into the shoes of the prospect and experience them like this. Sure, you could include the fields in your opt-in form to improve customer segmentation in your CRM system, but I’m going to say 40 fields is far too many. Oftentimes a field of more than three or four would also be too many.
Track product usage and trigger activity-based alerts
After users register for the free trial, it is not possible to create a blackout of data because you are unaware of the progress that the user is at. Using the salesperson’s contact number is expensive and may prove frustrating for a client. I think it is worth investing in a tool to track and monitor your users, actions, and features. ( Fastspring has a Pendo app. These tools help send emails if you trigger an activity.
Make upgrading or downgrading easy
How can you encourage people to upgrade? Before we move on to reducing the complexity, it is essential for you to also simplify downgrading or canceling. It’s not worth investing money in people whose conversion rate never increases. I once worked for a job with an email list with more than 500.000 users, but only 10,000 emails were good fits. We contacted the 40,000 emails, and they distorted our numbers.
Use Chatbots or Sales Tools to Proactively Handle Objections
Before many users start using paid software, some people ask questions that keep them from changing the software. Is it worth the money? Does it make sense to have an employee that does not like the product, and is it worth using? How much does cost mean? Any objections you have made must come up transparently and honestly if they are not before they are heard.
Communicate Expectations Clearly Throughout the Trial Period
Most people would like to know what they can get with the free trial. So, it’s relevant to provide users with all the pieces of information that might interest them regarding the free trial.
Conclusion
Applying cognitive neuroscience to your free trial conversion rates can be a successful strategy. By understanding how people think and make decisions, you can use this knowledge to increase the chances that they will convert to paying customers.
