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!