SAAS MARKETING

SaaS Trial Strategies for Conversions

Written by SaaS Writing Team | Nov 7, 2024 2:54:08 PM

When it comes to SaaS products, trials are one of the most effective tools to let your product sell itself. Whether it’s a short or extended trial, free or paid, with or without credit card requirements—trials allow prospects to experience your solution firsthand.

But no matter how carefully you craft a marketing strategy or design content that nudges prospects toward that 'Sign Up' button, it all comes down to conversion. Without the right trial strategy, you may be looking at an empty MRR dashboard.

Trial strategies vary, and so do the ways they impact conversions. Should you require a credit card upfront or allow a card-free entry? Should your trial be brief or generous? These factors will shape whether your trial users turn into long-term customers.

In this guide, we’ll explore different trial models for SaaS, when to use each, and how to implement them effectively.

Types of SaaS Trial Strategies

Here are your best bets.

Free Trial with Credit Card

Scenario: An email marketing tool requires a credit card to start a trial. Customers receive reminders as their trial nears its end, with options to upgrade.

  • Purpose: Attract qualified leads and filter out those less likely to convert.
  • Best for: Companies prioritizing higher-quality leads and revenue per user (RPU).
  • Example: Moz, the SEO platform, offers a 30-day trial with a credit card requirement.

Free Trial without Credit Card

Scenario: A visual board tool provides a card-free, no-strings-attached trial, making it easy for prospects to try the product risk-free.

  • Purpose: Minimize friction at sign-up and build trust.
  • Best for: Newer products aiming to grow user numbers quickly.
  • Example: Basecamp offers a 30-day trial with no credit card required.

Freemium with Usage Limits

Scenario: A design app offers a free plan that allows limited use and requires a credit card to stay active beyond certain usage.

  • Purpose: Attract a larger base with a free tier and upgrade options as usage increases.
  • Best for: Products with simple interfaces and room for scalability.
  • Example: SurveyMonkey provides a basic free plan with restrictions, collecting payment details upfront.

Free Trial of Premium Plans

Scenario: A design collaboration tool provides full access to its top-tier plan during a trial, then invites users to choose a subscription when the trial ends.

  • Purpose: Showcase all premium features upfront.
  • Best for: Products with clear tier distinctions in features and value.
  • Example: Xero’s accounting software offers a 30-day trial with full access to all features.

Paid Trials

Scenario: A fitness platform offers a 30-day paid trial to assess compatibility with a prospect’s needs.

  • Purpose: Motivate users to invest time in the product from the start.
  • Best for: Services where the trial incurs a significant cost.
  • Example: GuavaPass provides paid trials for its fitness services.

Trial Duration: Finding the Perfect Length

Choosing the right trial length can make all the difference. A trial that’s too short may not provide enough time for users to see value, while a trial that’s too long can reduce urgency.

Consider how long your target users need to experience the product’s benefits. Productivity tools like Basecamp and Hootsuite often offer 30-day trials to allow for thorough evaluation. On the other hand, well-known brands like Intercom and Shopify offer 14-day trials, trusting that customers will quickly grasp their value.

Key Metrics to Track for SaaS Trials

Monitoring these performance indicators can reveal if your trial strategy is effective or needs adjustment:

  1. Churn Rate: Measure monthly cancellations to ensure they remain below 5%.
  2. Monthly Recurring Revenue (MRR): Track revenue generated per month, reflecting subscription health.
  3. Customer Lifetime Value (CLV): Forecast the revenue you can expect from each customer.
  4. Net Revenue Retention (NRR): Assess revenue growth or loss from your current customer base.
  5. Customer Acquisition Cost (CAC): Evaluate how much you’re spending to gain each new customer.

Hire Winsome for SaaS Marketing

SaaS marketing success hinges on understanding customer needs, optimizing acquisition channels, and implementing a strategic trial model. A robust trial experience encourages customers to stay with your product long-term, boosting revenue and building loyalty.

At Winsome Marketing, we’re here to guide you in building SaaS trial strategies that convert. Let’s help you create a trial experience that makes your product stand out and encourages lasting customer relationships.