Tomasz Tunguz delivered a session on 10 Learnings About Free Trials at Saastr 2019. Based on a survey with 590 respondents – from single digit ARR to public SaaS companies and a wide variety of price points and customer profiles. 1000+ lines of R code was written to make sense of the data.
My learnings –
1. that conversion rates are not impacted by trial length. I believed it does (PitchLink offers 90 days). But that belief has to be suspended until further data can be obtained.
2. At all levels, sales person assisted conversions are 3.5x better.
3. Most surprising for me : For mid-market and SMB’s requirement of payment info increases conversion by 2.5x.
Here is what he found:
1.Annual Contracts Dominate.
2.Aim for 90%+ Logo Retention.
3.Target 100-140% Net Dollar Retention.
4.Time and Usage Based Free Trials Convert Better.
5.Conversion Rates Aren’t Impacted by Trial Length. Shorten Trial Length.
6.Salespeople Increase Conversion by 3.5x+.
7.Target 4%+ Unassisted Conversion.
8.Target 15%+ Assisted Conversion.
9.Scoring Leads by Activity May Lead to False Conclusions.
10.Requiring payment Increases Conversion Rate by 2.5x.
Top 10 Learnings from the Redpoint Free Trial Survey by Tomasz Tunguz https://bit.ly/2SfGi7i
