SaaS Free Trial: Everything you have to know

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A free trial is a technique integrated into a SaaS sales funnel that allows consumers to use the service for free for a limited time period. This helps users perceive the value without the perceived cost. While over 40% of SaaS companies list pricing on their site, only around 56% offer a free trial. Companies should consider if their product can demonstrate value through a free trial or if alternatives may work better. Analytics of the full funnel can help optimize elements like trial duration and pricing to improve conversion of users to paying customers.

Pequenos negócios e empreendedorismo Tecnologia Design

SaaS Free Trial
Pierre Lechelle
www.pierrelechelle.com

Consumers can use the service for free
for a limited period of time

Make users perceive the
value of your service
Perceived
Value
Perceived
Cost

Some statistics
• Totango Benchmark
• Sample of 550 B2B SaaS Companies
• 41% list pricing on their site
• 56% did not offer a free trial

Should you have one?
• It’s not obvious!
• Does it make sense to have a free trial inside
your sales funnel?

Think about the big picture
Customer Pricing Distribution
Sales
Funnel
Onboarding
Process
…

Should you have one?
• Can your product “sell itself”?
• Can the free trial, demonstrate value and
create usage?

Analytics & Optimization
• Consider your whole funnel
• Optimize your whole funnel
• Test whatever you can, including:
– Duration of free trial
– Pricing
• Measure Activation (Usage & Revenue)
Acquisition Activation Retention Referral Revenue

Convert users to paying customers
• Demonstrate value – it’s not about price
• Discover CCAs: set of actions users are doing
that demonstrates the value of the service
• Dig deep into Analytics to discover CCAs
• Push users to execute CCAs

Duration
• Free Trial should be
– Long enough for users to execute CCAs
– Short enough to create scarcity
• Experiment & Test Trial Duration

Repartition of Duration
30-day, 41%
2-week, 18%
1-week, 4%
60 days, 2%
10 days, 1%
45 days, 1%
6 months, 1%
Other, 9%
Totango’s Benchmark - Only 68% of the sample is known

You can also contact the people that did not
complete their payment details

Users did not convert?
• Impossible to get 100% conversion rate
• Contact them personally
• They’re still prospect, don’t let them down
• Make use of
– Lead Nurturing
– Email Marketing
– Retargeting

Alternatives to Free Trial?
• Sandbox demo
• Videos
• Money-back guarantee
• Non-obligation contract

Conclusion
• Try to better understand your customers and
the sales cycle
• SaaS Success come with
– Analyze and Optimize
– Tweaks

Wanna read more?
• Check out the full article
• Follow me on my blog

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1. SaaS Free Trial Pierre Lechelle www.pierrelechelle.com

2. WHAT IS A FREE TRIAL?

3. Consumers can use the service for free for a limited period of time

4. Make users perceive the value of your service Perceived Value Perceived Cost

7. Integrated inside the SaaS Sales Funnel

8. LEAD GENERATION TECHNIQUE

9. BRING QUALIFIED LEADS

10. Some statistics • Totango Benchmark • Sample of 550 B2B SaaS Companies • 41% list pricing on their site • 56% did not offer a free trial

11. Should you have one? • It’s not obvious! • Does it make sense to have a free trial inside your sales funnel?

12. Think about the big picture Customer Pricing Distribution Sales Funnel Onboarding Process …

13. Should you have one? • Can your product “sell itself”? • Can the free trial, demonstrate value and create usage?

14. Analytics & Optimization • Consider your whole funnel • Optimize your whole funnel • Test whatever you can, including: – Duration of free trial – Pricing • Measure Activation (Usage & Revenue) Acquisition Activation Retention Referral Revenue

15. Convert users to paying customers • Demonstrate value – it’s not about price • Discover CCAs: set of actions users are doing that demonstrates the value of the service • Dig deep into Analytics to discover CCAs • Push users to execute CCAs

16. Duration • Free Trial should be – Long enough for users to execute CCAs – Short enough to create scarcity • Experiment & Test Trial Duration

17. Repartition of Duration 30-day, 41% 2-week, 18% 1-week, 4% 60 days, 2% 10 days, 1% 45 days, 1% 6 months, 1% Other, 9% Totango’s Benchmark - Only 68% of the sample is known

18. CREDIT CARD AT SIGNUP?

19.

20. Conversion Rate Prospects Quality

21. HAVE A VERY SELF-EXPLANATORY WEBSITE

22. You can also contact the people that did not complete their payment details

23. Users did not convert? • Impossible to get 100% conversion rate • Contact them personally • They’re still prospect, don’t let them down • Make use of – Lead Nurturing – Email Marketing – Retargeting

24. Alternatives to Free Trial? • Sandbox demo • Videos • Money-back guarantee • Non-obligation contract

25. Conclusion • Try to better understand your customers and the sales cycle • SaaS Success come with – Analyze and Optimize – Tweaks

26. Wanna read more? • Check out the full article • Follow me on my blog

SaaS Free Trial: Everything you have to know

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