Are you frustrated with the low conversion rates of your SaaS free trial? You're not alone. Recent research indicates that the vast majority of free trial users fail to fully experience the value of a product within the initial trial period, resulting in missed opportunities for conversion.
If you're looking for a solution to this problem, offering trial extensions might be the answer. In this article, we'll explore the benefits of trial extensions and how they can help SaaS companies increase their conversion rates.
|Reason for Cancellation
|Didn't have enough time
|Product didn't meet expectations
|Found a better alternative
Common Reasons for Free Trial Cancellations
The Benefits of Trial Extensions
Here are some reasons why trial extensions can be an effective strategy for SaaS companies:
1. Increased Activation Rates
Activation rates tend to increase as users continue to use the product. This reinforces the idea that trial extensions can be beneficial for increasing activation and conversion rates.
By offering a trial extension, users who haven't had enough time to fully experience your product can continue using it. This can increase their chances of becoming activated and converting to paying customers.
2. Deeper Product Experience
Extending the trial period gives users more time to explore the product, making it more likely that they'll discover its value. This can lead to a deeper product experience, increasing their dependency on the product and ultimately leading to conversion.
3. Competitive Advantage
Offering a trial extension can differentiate your company from competitors not offering this option. It can also help build customer loyalty, as users appreciate the opportunity to try the product for longer.
How to Put Trial Extensions into Practice
Now that you understand the benefits of offering trial extensions, let's consider how to implement this tactic in your SaaS company.
Use Cases for Trial Extensions
Here are some specific use cases where trial extensions can be effective:
Tips for Implementing Trial Extensions
Here are some tips for implementing trial extensions in your SaaS company:
1. Be Strategic with Timing
Consider when to offer trial extensions. You don't want to offer them too early in the trial period, as this can undermine the urgency to explore the product. On the other hand, waiting until the end of the trial can be too late. Consider offering the extension around the halfway point of the trial period.
2. Communicate Clearly
Make sure to clearly communicate the option for a trial extension to users. This can be done through in-app messaging, email, or both. Be sure to explain the benefits of the extension and how it can help users fully experience the product.
3. Limit the Number of Extensions
Consider limiting the number of extensions a user can receive to prevent abuse of the system. For example, you could offer one extension per user, or limit the total number of extensions available each month.
4. Monitor and Analyze Results
Track user engagement and conversion rates before and after implementing trial extensions. Analyze the data to see if there's a noticeable improvement in conversion rates. Adjust your strategy if necessary.
Example of Trial Extension in Action
Let's say you're a SaaS company that offers a 14-day free trial. After analyzing your conversion rates, you notice that a large percentage of users are dropping off after day 7.
To combat this, you decide to offer users the option to extend their trial by an additional seven days. Here's what happens:
- Users who haven't had enough time to fully experience the product can continue using it, increasing their chances of becoming activated and converting to paying customers.
- Users who have already explored the product can deepen their experience, becoming more dependent on it and more likely to convert.
- You differentiate yourself from competitors who don't offer trial extensions, potentially attracting more customers and building loyalty among existing ones.
Offering trial extensions can be a valuable strategy for SaaS companies looking to increase their conversion rates. By giving users more time to explore the product, you can increase activation rates, deepen the product experience, and gain a competitive advantage.
Remember, only 17% of SaaS users are activated in the first week, so it's essential to provide users with enough time to fully experience your product. Offering trial extensions is a simple yet effective way to do this, and it could be the key to converting more leads into paying customers.