![]() ![]() Making free trials work for your SaaS business requires a reasonable degree of thought and preplanning. While you should take these figures with a pinch of salt, there’s no question that free trials can be a remarkably effective way to convince users to become paying customers. Although reported SaaS free trial conversion rates vary widely, depending on your source, a study from Totango found that opt-in free trials produce a 15% conversion rate, while opt-out free trials lead to a 50% conversion rate. To do that, we need to think about conversion rate. Now that you know a little more about the benefits of free trial products, let’s consider whether they’re actually useful. Understanding SaaS free trial conversion rates On the whole, SaaS free trials can be an effective pricing strategy, but you need to need to ensure that you’re optimising the process for your business. You should also consider the fact that some SaaS products need too steep a learning curve for a free trial to be genuinely effective. In some cases, the additional effort required to bridge that gap isn’t worth it. For a start, it requires you to spend much more time on the sales funnel – there are essentially two conversions that need to happen: trying the product and buying the product. Of course, there are several disadvantages associated with free trial products that you should consider. Besides, SaaS free trials provide you with extensive user data, which is valuable in and of itself. This can help to encourage more customers to sign up, making it an effective strategy for businesses attempting to penetrate the market. Put simply, you can reduce the friction of converting by giving potential customers a chance to see what your product offers before they officially commit. What are the benefits of SaaS free trials?įirstly, it can be much easier to convert users to paying customers with a free trial. ![]() Explore our guide to SaaS free trial best practices, right here. Beyond these examples, there are plenty of reasons why letting customers try before they buy could prove beneficial for your business. Some of the best-known success stories in the SaaS space – including Xero, Dropbox, and Salesforce – have used free trials to grow their customer base and expand their market reach. Free trials are a SaaS pricing strategy that can pay dividends for companies that know how to use them. ![]()
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