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Learn why free trials are a powerful tool for increasing conversions, attracting new customers and driving growth for your SaaS business.
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In the competitive world of Software as a service (SaaS), it can be difficult to stand out and attract new customers. However, offering a free trial can be a powerful way to entice potential customers to try your product and convert them into paying subscribers.
In this article, we'll explore the benefits of offering a free trial for your SaaS app and provide examples of successful companies that have thrived by offering free trials or freemium plans.
Reason 1: Increase Conversions
Offering a free trial is a powerful way to increase conversions and drive growth for your SaaS business. By allowing potential customers to try your product before committing to a paid subscription, you can reduce their risk and increase the likelihood of a conversion.
Reason 2: Attract New Customers
Offering a free trial can also be a powerful tool for attracting new customers to your SaaS platform. By providing a taste of your product's features and benefits, you can entice potential customers to try your platform and potentially convert them into long-term subscribers.
Reason 3: Improve User Engagement
Offering a free trial or freemium plan can also improve user engagement and drive customer loyalty. By providing a free trial or freemium plan, you can encourage users to explore your platform's features and benefits, increasing their engagement and likelihood of becoming a paying subscriber.
Examples of Successful Companies
Successful SaaS companies that offer free trials or freemium plans include:
Dropbox: Dropbox offers a freemium plan that allows users to store up to 2GB of data for free, which has helped attract millions of users to its platform.
HubSpot: HubSpot offers a free trial of its marketing, sales, and service software, which has helped it attract thousands of new customers and grow its business.
Zoom: Zoom offers a free plan with limited features that allows users to host meetings with up to 100 participants for up to 40 minutes. This has helped Zoom become one of the most popular video conferencing platforms in the world.
Statistical Data
According to a study by Small Business Trends, SaaS companies that offer free trials or freemium plans experience a conversion rate of 15-20%. In addition, research by ProfitWell found that companies that offer free trials have a higher customer lifetime value and lower churn rate than those that don't.
Conclusion
Offering a free trial or freemium plan is a powerful tool for increasing conversions, attracting new customers, and driving growth for your SaaS business. By reducing risk, improving engagement, and driving customer loyalty, free trials can be a valuable investment for any SaaS business. Use the examples and statistics outlined in this article to help inform your own free trial strategy and drive success for your SaaS business.