🚨 SaaS Free Trials: Amazing Strategy or Grave Mistake? 🚨
How to benefit from one of the most misunderstood concepts in SaaS! 📈
Harvard Business Review conducted extensive research into free trials.
Their conclusion?
The average customer lifetime value of free-trial customers is 59% lower than
that of regular customers. 🤯
Freemium and free trial pricing strategies are infamously difficult to implement
successfully.
On average, companies convert between 2 and 4% of their freemium clients into
paying customers. (Redpoint Ventures)
Even Dropbox has 500 million users but only 175,000 pay for the service.
What’s the best method for companies to benefit from free trials?
✅Give free trials to customers who already have a higher chance of purchasing
your service.
✅Instead of having a freemium campaign with limited features, give a premium
campaign for a limited time.
✅Include a sharing/referral feature in the offer after the free trial ends.
Following these three simple tips led to a 50% increase in conversation rates
from HBR’s study!
I’m curious to know your thoughts on the freemium business model! 👇 👇
I Help SaaS Founders Scale Quickly - Dan Martell
#SaaS #B2B #Founders #Entrepreneurship
Originally posted by Dan Martell on LinkedIn
link: linkedin.com/in/dmartell
How to benefit from one of the most misunderstood concepts in SaaS! 📈
Harvard Business Review conducted extensive research into free trials.
Their conclusion?
The average customer lifetime value of free-trial customers is 59% lower than
that of regular customers. 🤯
Freemium and free trial pricing strategies are infamously difficult to implement
successfully.
On average, companies convert between 2 and 4% of their freemium clients into
paying customers. (Redpoint Ventures)
Even Dropbox has 500 million users but only 175,000 pay for the service.
What’s the best method for companies to benefit from free trials?
✅Give free trials to customers who already have a higher chance of purchasing
your service.
✅Instead of having a freemium campaign with limited features, give a premium
campaign for a limited time.
✅Include a sharing/referral feature in the offer after the free trial ends.
Following these three simple tips led to a 50% increase in conversation rates
from HBR’s study!
I’m curious to know your thoughts on the freemium business model! 👇 👇
I Help SaaS Founders Scale Quickly - Dan Martell
#SaaS #B2B #Founders #Entrepreneurship
Originally posted by Dan Martell on LinkedIn
link: linkedin.com/in/dmartell