While just about every B2B SaaS company offers a Free Trial – especially those with self-service sales models – in my experience, the percentage of SaaS companies that feel their Free Trial is “successful” is fairly low.
Disappointingly low, actually.
And it absolutely doesn’t have to be that way and in this article I’ll show you how to create high-converting Free Trials!
Software as a Service (SaaS) companies often rely on free trials to convert potential customers into paying ones. However, not all free trials are created equal. Some result in a high conversion rate, while others fall short. Here are seven secrets of high-converting SaaS free trials:
- Set Clear Expectations
Be upfront about what the free trial includes and what it does not. This can help prevent customers from feeling misled or disappointed when the trial ends. It is also important to provide clear instructions on how to get started with the trial and any limitations or restrictions that may apply.
- Limit Trial Duration
Keep the trial period short enough to create a sense of urgency but long enough to allow users to fully test out the software. A trial period of 14-30 days is typically effective.
- Provide Exceptional Onboarding
The onboarding process should be simple and intuitive, making it easy for users to get started with the software. Provide clear instructions and guidance, and make it easy for users to reach out to support if they have any questions or issues.
- Highlight Key Features
Highlight the key features of the software that are likely to be of interest to potential customers. This can help them see the value in the software and make an informed decision about whether to purchase it.
- Collect Feedback
During the trial period, ask users for feedback on their experience with the software. This can provide valuable insights into what is working well and what can be improved. Use this feedback to make improvements and better tailor the software to the needs of potential customers.
- Offer Incentives
Consider offering incentives to users who sign up for the trial or convert to paying customers. This can include discounts, extended trial periods, or access to additional features.
- Follow Up
After the trial period ends, follow up with users who have not converted to paying customers. This can include sending reminder emails or offering additional support or incentives to encourage them to purchase the software.
By implementing these seven secrets of high-converting SaaS free trials, you can increase the likelihood of converting potential customers into paying ones. Remember, a successful free trial is about more than just getting users to try the software. It’s about providing an exceptional user experience and demonstrating the value of the software to potential customers.
Successful High-Converting SaaS Free Trials: statistics and real world examples
Free trials are a popular method for SaaS businesses to acquire and convert customers. The following statistics and real-world examples showcase the success of high-converting SaaS free trials:
- Conversion Rates: According to research by SaaS Capital, SaaS companies with a free trial have a median conversion rate of 20%, while companies without a free trial have a median conversion rate of 8%.
- Freemium vs. Free Trial: Freemium models, where a limited version of the product is offered for free, have lower conversion rates than free trials. According to a study by Totango, free trial conversion rates are 2-5 times higher than freemium conversion rates.
- Time Limits: Free trials that last between 7-14 days have the highest conversion rates. After 14 days, the conversion rates start to decrease. A study by ConversionXL found that companies with a 14-day free trial had a median conversion rate of 14.9%, while companies with a 30-day free trial had a median conversion rate of 11.3%.
- Customization: Customizing the free trial experience can improve conversion rates. For example, HubSpot found that customizing the onboarding process for each customer resulted in a 35% increase in conversion rates.
- Demos: Offering a demo in addition to a free trial can improve conversion rates. A study by SaaS Capital found that companies with a demo had a median conversion rate of 22%, compared to a median conversion rate of 18% for companies without a demo.
- Metrics: Measuring and analyzing free trial metrics can help identify areas for improvement. For example, Intercom increased their free trial conversion rate by 25% by focusing on activation metrics, such as the number of users who completed a key action during the trial.
- Real-World Examples: Companies such as Dropbox and HubSpot have seen success with free trials. Dropbox’s free trial resulted in a 60% conversion rate, while HubSpot’s customized onboarding process and free trial resulted in a 25% increase in conversion rates.
In conclusion, free trials are a successful strategy for SaaS businesses to acquire and convert customers. The key to success is customizing the experience, setting appropriate time limits, and measuring and analyzing metrics to identify areas for improvement. Real-world examples such as Dropbox and HubSpot showcase the effectiveness of free trials in driving conversion rates.