When your Free Trial fails to convert customers, it drives down your SaaS conversion rate by doing exactly what it was designed to do.
Think about that for a second.
There I was working on a ‘Optimizing SaaS Conversions’ presentation and I wrote this statement:
For many SaaS & Web App vendors, 100% of sales come through your Free Trial.
Which took me down this path…
But what if ONLY 10% of the people that enter your Free Trial convert to customers?
That means that 90% of the people that enter your Free Trial leave and don’t become customers!
This isn’t very complicated math, but I think that means ONLY 10 out of every 100 people that enter your Free Trial become a customer.
But again, FULLY 100% of your sales are from people that went through your Free Trial and converted.
Oddly, your attention and dollars go to getting more people into your Free Trial through advertising, content marketing, outbound and inbound sales, affiliate programs, marketplaces, or more likely… adding features because that’ll get’em!
SaaS Conversion Rate Trick
This makes no sense when you consider this little “trick.”
If 100% of your customers come through the Free Trial, but your Free Trial is squeezing out 90% of the potential customers, and you were able to take your Free Trial from converting ONLY 10% to converting JUST 20% of the prospects to paying customers…
YOU’LL DOUBLE YOUR REVENUE!
In fact, a company I helped recently with their SaaS conversion rate – Project Bubble – did just that when they increased free-to-paid conversions from their Free Trial by 240% in JUST 30 days and more than DOUBLED REVENUE!
Oh, and just like Project Bubble, if you optimize your Free Trial conversion process, you’ll double your revenue without spending a dime more on getting or buying additional site traffic, making more sales calls, etc… the potential customers are ALREADY IN YOUR FUNNEL… you’re just not converting them!
So focusing some attention on improving your Free Trial conversion rate is a quick way to Double Revenue while cutting Customer Acquisition Costs by 50%, too. (if you spent $10 to get 10 prospects, and 1 converted, that is $10 CAC. If you get 2 conversions, that is $5 CAC.)
Not bad, huh?
Let’s Double Your Revenue!
If you’re curious how we could Accelerate your Profitable Growth – perhaps by optimizing your Free Trial – contact me and we’ll setup a time to discuss your options for moving your company forward.