Post on 10-May-2015
description
The Data
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Which is better for SaaS – Freemium or Free Trial?
Unfortunately, there is no simple answer. It
depends on the nature of your service and on your
user-base.
Image source: Stuart Miles @ FreeDigitalPhotos.com
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Conversion from SaaS
Freemium is a link in
the chain of a
successful onboarding
and adoption process.
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There is no single
neat trick for
getting free users
to randomly
decide to start
paying. So we put
conversion in the
right context.
Img source under CC license: http://www.flickr.com/photos/pasukaru76/5944308910
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Balance should
be maintained
between two
parameters: Source: http://www.flickr.com/photos/29174632@N00/2208944056
Is Freemium
right for you?
Ask yourself:
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Balance should
be maintained
between two
parameters: Source: http://www.flickr.com/photos/29174632@N00/2208944056
It’s safe to assume the
average SaaS user “tries
out” 1-3 services/ webapps
a week. Lengthy onboarding
processes are less effective.
A Freemium SaaS plan will
work only with a simple
service.
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The consensus is that conversion
rates for Freemium services are
around 2-3%.
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If you are a B2C service, you will need to
establish a huge free-user-base until you
can convert those 2-3 out of each 100
users.
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If you are an SMB or
startup, you will need
to hold on for a long
time, raise funds and
find investors before
this business model will
work. Img source: stockimages @FreeDigitalphotos.net
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However, if you’re a
B2B – you’re in luck:
business owners are
more likely to spend
money on services and
applications than
individual users.
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If you are still
debating which free
software model is
right for you, read
our SaaS free trials
conversion to paid
plans Slideshare.
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How to
Engage Users
with the
Freemium Model?
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A common Freemium strategy: provide a
service that becomes indispensable.
Eventually, your users will have to upgrade
their account so as not to lose their storage
space/ data.
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Balance the free/paid plans:
The free plan is
enough for base
users.
The paid plan is where free
users will want to expand and
grow into. Loyal, long-time
users naturally evolve into
power users.
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Earn your users’
loyalty. Do that by
providing stellar
customer service and
by being upfront and
frank about the
upgrade options.
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LinkedIn is a terrific
example: the average
professional can enjoy
the platform’s many
services and opt to pay
only if they want a
specific set of helpful
tools.
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Stellar
Customer Service
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Customer service is perhaps the single most
important expression of care and concern a
software service can show its users.
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Changes
are
allowed
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Good news: your
users are well aware
that you are a
budding business or
a startup.
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Implement them gradually
Over-communicate them in
advance.
Your users will be tolerant toward
changes in your interface, pricing
model and features – so long as you:
Why Iridize Mobile? We Hope That Was Helpful!
Read more about onboarding solutions at blog.iridize.com Or request a demo at contact@iridize.com
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Icons in this presentation made from Flaticon.com: Freepik by
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