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New data: When folks are most likely to convert from trial-to-paid. It’s even earlier than I thought 👀

And it’s one of the best pieces of evidence I've seen in support of reverse trials.

For B2B SaaS companies, about 5% of new trialists convert from free-to-paid within 6 months. (In B2C, it's closer to 20%.)

Of these conversions:

- HALF (!) happen within the first 7 days

- 70% happen within the first 14 days

- 90% happen within the first month

- But only about 3% happen in months 3-6

The data comes from my friends at ChartMogul who looked at the GTM and conversion data of 2,500+ SaaS companies.

Look, the immediate takeaway of this data is that you have a very narrow window to impress trial users. Usually within the first week -- if not sooner.

My two cents about what to do with this data: re-engage signups post-trial!

1. Consider a 'reverse trial' -- letting folks downgrade to a freemium plan if they don't convert within the trial period.

Why? This gives users more time to see value. It then creates additional conversion opportunities over time: users hit a CTA in the product, they run into a feature gate, they trip a usage limit. And they can become product-qualified leads for the sales team.

In my recent State of B2B Monetization survey, still only 4% of software companies have a reverse trial. That's about one-tenth the rate of free trial/freemium.

2. Auto-extend free trials for accounts who reached an 'aha moment' but didn't buy.

Why? In my experience, about 25-40% of new signups reach an 'aha moment' within their first week. But this data shows only about 5% of folks are buying. That leaves 20-35% of signups reaching and 'aha moment' and NOT buying!

Depending on user signals, you could take a 'smart trial' approach to either (a) enforcing the trial time-limit, (b) extending the trial period and/or (c) collecting data on why they've decided not to buy.

3. Periodically re-open trial windows, especially around major milestones like new product releases or events.

Why? Your product is constantly improving. Make sure lapsed trial users see that and have a chance to experience it firsthand!

Jun 17
at
12:49 PM

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