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We've all obsessed about the "optimal" SaaS trial model. 30-day? 14-day? Freemium. Last week we decided to look at the data for some answers. We took 9 SaaS companies with different models and trial lengths and studied their conversion rates. Our observations: 1. After about 40 days the cumulative conversion rate for different trial lengths and freemium all hit about 80%. 2. 50% of SaaS conversions happen AFTER the trial ends. Customers continue to convert 6 months after a trial ends. 3. SaaS companies with an "S" shaped cumulative conversion graph have the best opportunity to accelerate revenue with behavior based conversions. Our conclusions/suggestions: There doesn't seem to be anything magical about the length of a free trial because different customers convert and adopt at different rates. Rather than look for the optimal, 1-size-fits-all trial length convert based on a customers' qualification and behavior. Then use the timed-trial to create purchasing incentive.

  • GS

    Gerardo Salandra

    about 3 years ago #

    Great article! Our company has been discussing the trial period length lately, and is hard to come up with this "magic number".

    However, this analysis is based on the assumption that the trial period length does not influence the number of potential customer. In other words, they all might come to 80% of total subscriber after 40 days, but maybe 80% of subscriber for a 14-days trial would differ from a 30-days trial.

    Would be interesting to find out how big that difference is!

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