What is free trial conversion rate?
Free trial conversion rate is a metric that measures how many of your free trial visitors convert to paying customers. It is an important metric because if users don’t convert into paying customers, you won’t earn revenue.
Free trial conversion rate also helps you lower your acquisition costs by growing the value of your current visitors and users.
How to calculate free trial conversion rate?
To calculate the free trial conversion rate, divide the ‘number of conversions’ by the ‘total number of free trial users’ and multiply by 100.
Formula for calculating free trial conversion rate
Real-life example of free trial conversion rate
Let’s assume you run a micro SaaS business and you are providing a free trial to your visitors for a specific time frame. 200 visitors signed up for your free trial of the product. After one month, the free trial gets over. Out of those 200 free trial users, 80 of them upgraded to the paid version of your product.
By putting the figures in the formula, you’ll get a free trial conversion rate of: 80/200 x 100 = 40%.
What’s an average free trial conversion rate? (benchmark)
Free trial conversion rate depends on the type of model you use for free trials. One is, without providing any credit card information and the other is when you collect credit card details up-front.
With an opt-in trial (without card info), 25% is the average industry benchmark and for an opt-out trial (with card info), 60% is the average free trial conversion rate.
B2C companies have an industry average of 57% while in the B2B space, the industry average is between 14-25%.
Ways to increase your free trial conversion rate
- Provide a frictionless onboarding: You need to ensure that your sign-up process is not complicated and provide an engaging product tour to your users. Read this guide on: How To Create Better Product Tours
- Predict users’ likeliness to convert: You can segregate your free trial users by using behavioural segmentation. By having an estimate, you can determine if a new trial user will likely convert or not and you can perform various measures to motivate them to upgrade.
- Getting their hands dirty ASAP: You can tailor the app’s demo data according to your user and hand-hold them through the workings of the tool. This way the users will be able to get a better grasp of how things work and see your solution as the best one to get their job done.
Also Read: Related Metrics
- Net Promoter Score
- Customer Churn Rate
- Customer Lifetime Value
- Customer Retention Rate
- Repeat Purchase Rate
- Customer Satisfaction Score (CSAT)
- Renewal Rate
- Customer Acquisition Cost
- First Contact Resolution Rate (FCR)
- Daily Active Users (DAU)
- Monthly Active Users (MAU)
- Average Revenue Per User
- Referral Program ROI
- Upsell Rate & Cross-sell Rate
- Viral Coefficient
- Participant Share Rate
- Invitation Conversion Rate
- Net Dollar Retention
- Product Adoption Rate
- Sessions per User