What’s your conversion rate from trial to paid?
Do you know how many of the people who start a free trial end up paying you real money? Customer.io has improved from a bad conversion rate to a slightly less bad conversion rate. Here it is reported from our internal dashboard: We currently convert at 3% from sign up to paid. For every 100 signups, we get about 3 paying customers. (edit: I reported this wrong. Our conversion rate is actually 6 – 10%) Your conversion rate might be higher, or it might be lower. Whatever your number is, it is likely your conversion rate will be vastly different to ours because your business is different.
Everything you do affects your free-to-paid conversion.Converting people from free-to-paid is the sum-total of every decision you’ve made and everything you do in your business. Some decisions get more people in the top of the funnel but those people may not be high quality leads. Other decisions might send fewer people through your funnel but have a much higher success rate. For example:
- Do you have a trial period?
- Do you require a credit card up front?
- Are you acquiring signups through advertising?
- Can people understand what your product does before signing up?
- Do support questions get answered quickly?
- How helpful are your on-boarding emails?
- How quickly do pages in your product load?
- There’s a free tier with no time-pressure to pay.
- We don’t do paid advertising — all signups are word of mouth or from reading blog posts like this.
- Sign ups receive our lifecycle emails to help them get started.
- Our entry level paid plan is $50 a month.
- We try to make our documentation comprehensive
- We have a features page and pricing to hopefully pre-qualify signups.
Can Concierge on-boarding improve free to paid conversion?For the past several months, I’ve been hearing people talking about “Concierge Onboarding”.
What to work on (SaaS): Concierge + automated onboarding, pricing strategy, paid acquisition, scalable content generation, lifecycle email.— Patrick McKenzie (@patio11) April 1, 2014With concierge onboarding you spend time helping your prospective customers get up and running with your product. For Customer.io this might mean working with a company’s developers on implementation details, or working with marketing teams to design triggered email campaigns that map to their activation funnel. If I had to put money on it, I’d guess that doing “Concierge On-boarding” might boost our conversion rate at least from 3 – 4%. At the high end it could even double our conversion rate. I’ve designed an experiment where we can test this hypothesis. Here’s what I’m doing. If you want to set up your own Concierge On-boarding experiment in Customer.io, you could use similar steps: