{"id":2142,"date":"2021-07-19T12:05:56","date_gmt":"2021-07-19T12:05:56","guid":{"rendered":"https:\/\/fpgrowth.io\/?post_type=resources&p=2142"},"modified":"2024-04-22T13:18:17","modified_gmt":"2024-04-22T13:18:17","slug":"freemium-vs-free-trial","status":"publish","type":"post","link":"https:\/\/fpgrowth.io\/blog\/freemium-vs-free-trial\/","title":{"rendered":"How To Optimize and Increase Your Freemium Conversion Rate?"},"content":{"rendered":"\n

Freemium vs free-trial pricing model, which one is better? Well, both drive traffic to your product and increase the signup rate but the reality is that neither generates revenue. You can drive all the traffic you want to your business but if your users aren\u2019t converting, you will fail to see the growth.<\/span><\/p>\n\n\n\n

Although a lot of SaaS companies out there have employed the freemium models<\/a>, not all have been successful. Take for example the case of <\/span>Evernote<\/span><\/a> – Cloud-based note-taking software they weren\u2019t able to convert most of their 200M users into paying subscribers. The story isn\u2019t unique to them, Dropbox<\/a>, a file-storage service, has managed to convert only 10% of their 500M users into paying subscribers.<\/span><\/p>\n\n\n\n

You need to use your strategic energy to figure out how to transition more free users into paying customers. You need to deep dive into what can motivate your customers to upgrade. In this article, we will give you the best ways which can help you increase your conversion rate<\/a> and build a strong SaaS business using the freemium model:<\/span><\/p>\n\n\n\n

<\/span><\/a>Set The Right Product Limitations<\/span><\/h2>\n\n\n\n

One of the first things that you should analyze for a low conversion rate is your product limitations. What does your free version offer? Is it too extensive? If your users feel their needs have been satisfied with the free version, they won\u2019t go ahead to buy a paid version of the same product. <\/span><\/p>\n\n\n\n

You can use data from your competitors to analyze what should be free and what should go in the paid version of your product. You obviously don\u2019t need to copy them, the collected data will help you set a benchmark and help you understand what the competitive landscape is so you can later design your marketing campaigns accordingly, leveraging your USPs. You just need to leave enough value to lure your customers into upgrading. <\/span><\/p>\n\n\n\n

<\/span><\/a>Free Trial Of Premium<\/span><\/h2>\n\n\n\n

You might have decided on implementing a freemium model over the free trial model for your product. Wait, who said you\u2019ve to choose when you can use both.<\/span><\/p>\n\n\n\n

Since you\u2019ve taken up the freemium model, you can offer users a free trial of the premium version of your product. The two strategies complement each other very well, so you get the best of both worlds. This will allow users to explore the premium features and functionalities of the product, i.e., they get to see the full value of the product and then decide whether to go for it or not. Also, users aren\u2019t forced to upgrade once the free trial is over, reducing the free trial churn rate. <\/span><\/p>\n\n\n\n

<\/span><\/a>Let Your Product Speak<\/span><\/h2>\n\n\n\n

When using a freemium model it\u2019s your product that needs to sell itself. You should be well aware of the USPs and leverage them while convincing your users for an upgrade. They should be able to see the benefits of your product as soon as they hit the signup button.<\/span><\/p>\n\n\n\n

There are many things you can do to improve customer success, such as:<\/span><\/p>\n\n\n\n