When to Use a Reverse Trial

Maximizing Engagement and Conversion with SaaS Reverse Trial

Utilizing reverse trials enhances participation in your growth loops, achieving the 15% conversion rate of a free trial and boosting the usage rate of a freemium plan to 25%. The Reverse Trial method (Full-Use Trial -> Trial End -> Freemium) allows users to fully explore all features without abrupt access termination at the trial’s conclusion, providing a clear perspective on the benefits they stand to lose.

In the reverse trial model, customers initially gain access to paid features during the acquisition phase, seamlessly transitioning to a freemium model if they choose not to upgrade. This approach ensures continuous, albeit limited, access without abrupt terminations. This model adeptly balances user engagement with conversion prospects: it not only encourages habit formation by allowing customers to experience premium features initially but also maintains user interest by offering a continued free version if the paid services don’t align with their needs. Additionally, the option for free users to re-initiate their trials serves as a strategic tool to foster ongoing conversions.

What is a SaaS reverse trial?

A SaaS reverse trial is an innovative approach that blends elements of both freemium and free trial models. In this model, when users sign up, they are initially given access to the full suite of premium features. However, instead of completely losing access after the trial period ends, users are downgraded to a more limited, free version of the product. This method allows users to fully experience and appreciate the product’s capabilities and the added value of its premium features. The intent is to encourage users to become accustomed to and value these advanced features, potentially leading to a paid subscription. This approach is not just theoretical; it’s been adopted by notable SaaS companies like Notion and Figma, demonstrating its practical application and success in the market.

Free trial vs. freemium pricing models

In the realm of SaaS pricing strategies, the free trial and freemium models each offer distinct approaches to user acquisition and conversion.

The free trial model grants users complete access to a product’s entire range of features, but this access is time-bound, typically lasting 14 or 30 days. This model is designed to give potential customers a comprehensive experience of the product’s full capabilities, hoping to convince them of its value and lead to a paid subscription once the trial period expires.

Conversely, the freemium model provides users with indefinite access to a basic version of the product at no cost. This version usually includes limited features, with the option to upgrade to a more feature-rich, paid version. The challenge with the freemium model is that users might become accustomed to the basic functionality and may not perceive the need to upgrade to the paid version. This could result in lower conversion rates to paid plans.

A critical aspect of both models is the value they bring to the company. While they can attract a large user base, the real benefit to the company often depends on these users converting to paying customers, leaving positive reviews, or promoting the product through word-of-mouth. However, these benefits alone may not suffice, especially for companies aiming to maximize revenue per user.

In practice, my team at 150birds and I have implemented these strategies, including crafting calls-to-action (CTAs) for a 14-Day Free Trial to effectively engage potential users and encourage them to experience the full capabilities of our product within a limited timeframe.

150birds 14-Day Free Trial

Benefits of Using the SaaS Reverse Trial Method

The SaaS reverse trial method cleverly marries the best aspects of both freemium and free trial models while mitigating their respective drawbacks. It offers a unique advantage in user retention and conversion:

1. User Retention: Unlike traditional trials where users face a hard stop — either upgrade or lose access — the reverse trial shifts users to a freemium model post-trial. This approach retains users who aren’t ready to commit to a paid plan but are still interested in the product.
2. Conversion Opportunities: The transition from a full-featured trial to a more limited freemium offering subtly demonstrates the value of the paid features, potentially encouraging users to eventually upgrade.
3. Balanced Engagement: Users are less likely to feel the pressure of a looming trial expiration, leading to a more natural and engaged exploration of the product.

Ideal Length of a SaaS Free Trial

Determining the optimal length of a SaaS free trial is nuanced and depends on several factors:

• Product Complexity: More intricate products may require longer trials for users to fully grasp their value.
• Subscription Cost: Higher-priced offerings might need extended trial periods for decision-making, especially in cases requiring management approval.
• 14-Day Standard: Generally, a 14-day trial strikes a balance, offering enough time for exploration without being overly generous to the point of attracting non-serious users.

Reasonable Conversion Rate for SaaS Trials

• Early Stage: For newer SaaS companies still finding their market fit, a 15% conversion rate is considered acceptable.
• Industry Standard: A 25% conversion rate is the average in the SaaS industry.
• Mature Companies: Well-established companies should aim for a 50–75% conversion rate, particularly when employing an opt-out model.

Free Trial Models for SaaS

1. With Credit Card (Opt-Out Free Trial):

• Best for qualifying high-intent leads.
• Fewer but more quality leads.
• Caution advised for newer companies without strong market presence.

2. Without Credit Card (Opt-In Free Trial):

• Lower barrier to entry, attracting a broader audience.
• Ideal for new product launches needing extensive user testing.

3. Live Demo Free Trial:

• Suitable for complex SaaS products requiring guided demonstrations.
• Can be supplemented with sandbox environments, video tutorials, and webinars.

Converting Users Before the Reverse Trial Ends

Maximizing conversions from free to paid users in a reverse trial model is challenging yet crucial. Strategies to enhance conversion rates include:

• Optimized Onboarding: Tailoring the onboarding experience to different user segments.
• Engagement Tactics: Using interactive UI elements and checklists to drive user engagement and demonstrate product value.
• FOMO and Reminders: Effectively communicating the impending end of the trial period to create a sense of urgency.
• Journey Mapping: Continuously refining the user journey, identifying pain points, and optimizing the experience to guide users towards conversion.

Implementing these strategies can significantly increase the likelihood of converting trial users into paying customers in the SaaS reverse trial model.

Trial to Paid Conversion Rate (CR)

Ensuring a Stellar Onboarding Experience for Trial Users

Onboarding is a pivotal moment in the user journey, serving as the initial interaction with your brand. This first impression can significantly impact the user’s perception and decision-making process.

Tailoring the Onboarding Experience

Customizing the onboarding process is crucial during the trial phase. Since your product offers a range of features, it’s vital to align these with the specific needs and interests of different user segments. Personalizing the experience not only speeds up user activation but also enhances the overall user engagement. Utilize welcome screens to gather initial data and then categorize users into different cohorts to provide them with relevant experiences and UI elements.

Utilizing Checklists to Expedite Value Realization

Checklists are an effective tool to encourage users to engage with key features and complete the onboarding process. They provide a clear roadmap of actions to take, creating a sense of accomplishment as users progress.

Engaging Users with Interactive Elements

Frequent engagement is key to user retention. Interactive walkthroughs offer a hands-on approach to learning about your product, as opposed to passive product tours. This active engagement helps in building a deeper connection with the tool.

Leveraging FOMO Before Trial Expiration

Create a sense of urgency by reminding users about the impending end of their trial period. Highlight what they stand to lose if they don’t upgrade, and communicate effectively when their account is downgraded to seize the last opportunity for conversion.

Optimizing the Trial User Journey

Mapping the user journey is essential to understand how users interact with your product. Analyze this journey to identify friction points and areas where users tend to disengage. Techniques like funnel analytics can reveal the steps users take towards specific outcomes and where they drop off, allowing for continuous optimization of the trial experience.

Conclusion

Regardless of the trial model you employ — be it opt-in, opt-out, or live demo — the goal is to demonstrate the value of your product to the users. By showcasing how your product meets their needs, you can significantly boost your conversion rates. Experiment with the reverse trial approach, evaluate its effectiveness against your current strategies and choose the one that yields the best results. For more expert advice and insights on enhancing your go-to-market strategy, visit RiteGTM. Ready to take your SaaS business to the next level? Schedule a call with our experts at RiteGTM and start transforming your go-to-market approach today.