Want to turn more free trial users into paying customers? Trial extensions might be your secret weapon. Here's why they work:
- Give users extra time to explore your product
- Tackle the main reason for cancellations (42% say they didn't have enough time)
- Boost activation rates and engagement
Key strategies for effective trial extensions:
- Pick the right users based on engagement and product usage
- Offer automatic or manual extensions
- Communicate clearly about the extension and its value
- Guide users to key features during the extra time
- Time your payment ask right after the "aha moment"
- Use tiered pricing and early-bird incentives
By implementing smart trial extensions, you can significantly increase your conversion rates. Aim for 7-10%+ free-to-paid conversions, and keep an eye on user engagement and activation rates to measure success.
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How Trial Extensions Affect Sales
Trial extensions can boost your conversion rates and increase customer value. Let's look at how they work and what numbers matter.
What Are Trial Extensions
Trial extensions give potential customers extra time to explore your product after the initial free trial. They work well for users who haven't fully experienced your product's value yet.
Why are trial extensions effective?
- Users get more time to engage with your product
- Activation rates go up as users spend more time with your product
- They tackle the main reason for free trial cancellations - 42% of users say they didn't have enough time to explore
Key Numbers to Watch
To see if your trial extensions are working, keep an eye on these metrics:
1. Conversion rates: The percentage of trial users who become paying customers. Here are some benchmarks:
- Opt-in trials: 18.20%
- Opt-out trials: 48.80%
- B2B companies: 14-25%
- B2C companies: Around 57%
2. Activation rates: How user activation increases over time:
- Week 1: 17%
- Week 2: 25%
- Week 3: 32%
- Week 4: 38%
- Week 5: 43%
3. Time to convert: How long it takes users to upgrade from a free trial to a paid plan. This helps you figure out the best trial length and extension period.
4. Engagement metrics: Specific actions that lead to conversions. For example:
- Help Scout found that a certain number of customer conversations and adding one more user strongly linked to trial conversions
- Chartbeat saw that time spent in the dashboard during the first 7 days was key for conversion rates
5. Customer Acquisition Cost (CAC): How trial extensions affect your overall CAC. Good extensions should lower this cost by increasing conversions without spending much more.
6. Lifetime Value (LTV): Users who try your product through a trial or freemium model often have a higher LTV. See how trial extensions change this important metric.
As Suneet Bhatt, a growth expert, says:
"I don't like the idea of having an entire company with one North Star Metric."
So, look at a mix of these metrics to get a full picture of how your trial extension strategy is doing.
Finding the Right Users for Extensions
Picking the right users for extended trials can seriously boost your conversion rates. Let's dive into how to spot these potential customers.
How Users Interact
User behavior during trials can tell you a lot. Here's what to watch for:
Engagement levels: Look for users who log in often. They're interested but might need more time to see the full value.
Feature exploration: Users trying out different features are curious. They might just need extra time to test everything.
Help-seeking behavior: If they're reaching out to support or checking help docs, they're trying to overcome hurdles. More time could help them get comfortable.
Incomplete onboarding: Some users might not finish onboarding. They could use more time to get the hang of things.
Buffer, a social media tool, has a smart approach. They send six emails during a 14-day trial, each showcasing new features. This helps them spot engaged users who might benefit from an extension.
Product Usage Signs
Certain usage metrics can help you find users who are close to converting. Keep an eye on:
Activation rate: This shows how fast users hit their "aha moment". Amplitude's research says the average 7-day activation rate is 6.8%, but it varies by industry.
Feature adoption rate: Track which features users are picking up. Steady increase? They might be good extension candidates.
Time in product: More time spent often means more engagement. Watch for users increasing their time.
Paywalls hit: Users bumping into paywalls for premium features are showing interest. They might just need more time to justify upgrading.
Core action completion: Identify key actions that usually lead to conversions. Users close to finishing these are prime for extensions.
Suneet Bhatt, a growth expert, says:
"I don't like the idea of having an entire company with one North Star Metric."
This applies here too. Don't just look at one thing. Combine interaction patterns and usage metrics to find your best extension candidates.
Setting Up Trial Extensions
Let's dive into how trial extensions can boost your conversion rates. We'll look at two main approaches and how to talk to your users about them.
Auto vs. Manual Extensions
You've got two options: automatic extensions and manual requests. Each has its pros and cons.
Automatic Extensions:
These can keep engaged users without extra work. Here's how:
- Pick users with high potential based on how much they use your product and their company size.
- Set up your system to automatically extend trials for users who fit certain criteria.
- Let users know about the extension via email or in your app.
Take Zendesk, for example. They offer a 14-day free trial. They could automatically give an extra 7 days to users who've logged in at least 5 times and used key features.
Manual Extensions:
These let you personalize your approach, but they take more effort. Here's the deal:
- Give users an easy way to ask for more time, like a simple form or email support.
- Make sure your support team can handle these requests quickly and nicely.
- For big potential customers, think about offering one-on-one calls to discuss strategy.
ClassPass does this well. When users try to cancel, they offer to extend the trial. It's a smart way to give users another shot at seeing the value.
How to Talk to Users
When you offer more trial time, you need to communicate clearly and persuasively. Here's how:
- Make it personal: Talk to users based on who they are and what they need. If someone's been using your project tools, tell them how extra time can help them set up their first project.
- Show the good stuff: Tell users exactly what they get with more time. For example: "Get 7 more days to try our advanced reports and see what our platform can really do."
- Create a sense of urgency: Give users more time, but encourage them to act. Try something like: "You've got 5 more days to use our best features - don't miss out on supercharging your work!"
- Guide them: Give users a clear plan for their extra time. For instance: "During your extra week, try these three key features to get the most out of our product..."
- Be clear: Tell users how long the extension lasts and what happens next. Like this: "Your extra 7 days start now. After that, you'll need to upgrade to keep using our premium features."
Remember, you're trying to boost your conversion rate by giving users the time they need to see your product's value. As Alice Muir, a SaaS growth expert, says:
"The ultimate goal here is to increase the Conversion Rate, however, there's no unified metric for how many trial days a user needs in order to convert, varying case by case."
Getting Results from Extensions
Trial extensions can boost your SaaS conversions and help users grasp your product's value. Here's how to make the most of them:
Showing Product Worth
When you extend a trial, you're giving users extra time to experience your product. Make sure they see its value:
Personalize the experience
Tailor your approach based on user behavior. If someone's been exploring your project management features, send them tips on setting up their first project during the extended trial.
Highlight key features
Use the extra time to showcase your product's best features. Canva, for example, offers thousands of pre-built templates instead of a blank canvas. This shows the product's potential and gets users started quickly.
Guide users through your product
Offer step-by-step tutorials to shorten the learning curve and help users reach their "Aha!" moment faster.
Celebrate progress
Acknowledge when users complete important actions or hit milestones. This can motivate them to dig deeper into your product.
"Celebrating small wins increases the chance of higher engagement. That's because the user is motivated to repeat the actions that drove the initial success and got them the dopamine hit."
Empower users with self-service support
Build a resource center where users can find answers quickly. This keeps them engaged and helps them solve problems on their own.
Working with Decision Makers
Converting trials often means impressing more than just the end-user. You need to connect with the people who make buying decisions:
Find the key players
Use your trial data to spot decision-makers. Look for users exploring admin features or inviting team members to the trial.
Focus on value in your communication
When you reach out to decision-makers, highlight the concrete benefits your product brings. Show potential time savings or ROI based on their specific trial usage.
Offer tailored demos
For promising leads, consider one-on-one demos customized to their needs. Customer.io doubled their free trial conversion rate with this kind of personalized onboarding.
Tackle common concerns head-on
Anticipate and address worries decision-makers might have, like security features, integration options, or how well your product scales.
Share success stories
Provide case studies from similar companies or industries. This helps decision-makers picture how your product could work for them.
Turning Trials into Sales
Let's dive into how SaaS companies can turn trial users into paying customers.
When to Ask for Payment
Timing is key. Here's what you need to know:
Find Your Product's "Aha" Moment
Ask for payment right after users see your product's value. This "aha" moment is different for every product.
Take Inspire Planner, a Salesforce project management app. They offer a 30-day free trial. Why? Tim Koroteev, their Director of Marketing, explains:
"Even though our software is intuitive, our potential customers typically need more time to experience the full value of our product."
Short Trials Can Work Better
Surprisingly, shorter trials often convert better. Jake Rheude from Red Stag Fulfillment says:
"The shorter the trial length, the lower your customer acquisition cost will be."
Here's a fun fact: Apps with trials of 4 days or less see a 30% conversion rate. Bump that up to 5-9 days, and you're looking at a 45% conversion rate.
Don't Stop at Trial's End
If users don't buy right away, keep trying. MadKudu found that it takes about 40 days to get 80% of SaaS conversions. Half of those happen after the trial ends.
Setting the Right Price
Your pricing can make or break conversions. Here's how to nail it:
Show Value, Not Just Cost
Don't just talk about price. Show why your product is worth it. Maggie Paveza from The Good puts it well:
"Your job is to convince them that the value they'll get from the product is worth the price."
Reward Early Birds
Give special deals to users who upgrade before their trial ends. It creates urgency and can boost conversions.
Use Tiered Pricing
Offer different price levels. It lets users pick what fits their needs and budget, making them more likely to buy.
Be Clear About Pricing
Don't hide your prices. Be upfront throughout the trial. It helps users make informed choices and avoids last-minute surprises that could scare them off.
Checking Extension Results
Let's dig into the numbers to see if your trial extensions are working. We'll look at both sales and financial impacts.
Sales Numbers
Here's how to tell if your extensions are boosting sales:
Conversion Rates
Keep tabs on your free-to-paid conversion rates before and after extensions. Here's what to aim for:
- 5%-7%: Not bad
- 7%-10%: You're nailing it
- 10%-20%: You're crushing it
If your rate goes up after adding extensions, you're on the right path.
Activation Rates
The longer users stick around, the more likely they are to activate. Check out these average rates:
| Week | Activation Rate |
|---|---|
| 1 | 17% |
| 2 | 25% |
| 3 | 32% |
| 4 | 38% |
| 5 | 43% |
If your extended trials push users further along this curve, that's a good sign.
User Engagement
Watch how users behave during the extension. Are they trying out more features? Adding team members? These actions often lead to more conversions.
"The average activation rate for day seven activation is 6.8% and varies across industries - it's 5.1% in retail and 10% in manufacturing." - Amplitude Research
Financial Impact
More sales are great, but make sure your extension strategy makes financial sense too:
Customer Acquisition Cost (CAC)
Calculate your CAC before and after extensions. If it's going down, that means more users are converting without extra marketing spend.
Lifetime Value (LTV)
Amplitude says users who start with freemium models (including extended trials) often have a higher LTV than those who jump straight to paid plans. See if this holds true for your extended trial users.
Revenue Growth
Is your overall revenue growth speeding up after adding extensions? That's a good sign.
Churn Rate
Keep an eye on churn. Good trial extensions should lead to more loyal customers and possibly lower churn rates.
Don't just look at these numbers in isolation. As growth expert Suneet Bhatt puts it:
"I don't like the idea of having an entire company with one North Star Metric."
Look at the big picture to really understand how your extensions are performing.
Conclusion
Trial extensions can boost SaaS conversion rates and revenue. By giving users extra time to explore, companies increase their chances of turning free users into paying customers.
Here's how to make trial extensions work:
1. Track the right metrics
Keep an eye on:
- Free-to-paid conversion rates (aim for 7-10%+)
- Activation rates (they go up over time)
- User engagement
2. Find the sweet spot for trial length
Shorter trials often convert better. 4-day trials see 30% conversion, while 5-9 day trials hit 45%. But your ideal length depends on your product and audience.
3. Be smart about extensions
Offer automatic extensions to promising users based on engagement and company size. For example, extend a 14-day trial by a week for users who've logged in 5+ times and used key features.
4. Make the user experience count
Get users to their "aha" moment FAST. Customer.io doubled conversions with personalized onboarding. Canva shows off templates right away to showcase what's possible.
5. Talk to your users
Personalize your messages based on how they use your product. When you offer extensions, create urgency but also show them how to make the most of that extra time.
6. Think hard about pricing
Be upfront about costs during the trial. Offer different price tiers for different needs. Highrise saw a 200% jump in signups by changing their CTA from "Sign up for free trial" to "See plans and pricing".
7. Keep at it after the trial
Conversions don't stop when the trial does. MadKudu found it takes about 40 days to get 80% of SaaS conversions, with half happening after the trial ends.
Discover the Top 500 Products From Indie Hacker Community
Need tools to manage trial extensions and boost conversions? Disrupt500.com might be your new best friend.
This platform showcases 500 innovative products from indie hackers and startups. It's like a curated buffet of tools, perfect for startups hungry to optimize their trial strategies.
Disrupt500.com breaks down its offerings into 23 categories, including Marketing and Productivity. Want to track user engagement during extended trials? There's probably an analytics tool for that. Looking to send personalized reminders to trial users? You might find the perfect email automation software.
Here's the kicker: Disrupt500 is human-curated. Instead of drowning you in options, they've hand-picked the cream of the crop. It's quality over quantity, folks.
So, if you're itching to implement those trial extension strategies we talked about - like personalized onboarding or chatting up decision-makers - Disrupt500 could be your treasure map. It's packed with tools that align with trial management best practices and conversion optimization tricks.
