Sales, Marketing
Trial-to-Paid Conversion Rate
Trial-to-Paid Conversion Rate measures the percentage of users who convert from a free trial of a product or service to a paid subscription. This metric is essential for companies offering trial periods, helping them understand the effectiveness of the trial in convincing users to purchase.
HOW TO MEASURE
Calculate the rate by dividing the number of users who convert to a paid subscription at the end of their trial period by the total number of users who started the trial, then multiply by 100 to express it as a percentage.
HOW TO IMPROVE
Enhance Trial Experience: Ensure the trial provides full access to key features that demonstrate the product's value.
Effective Onboarding: Guide new trial users through the product’s features and benefits to maximize their engagement and understanding.
Timely Communication: Send reminders and promotional offers before the trial period ends to encourage conversion.
Feedback Collection: Gather feedback during and after the trial to improve the product and the trial process.
FORMULA
Trial-to-Paid Conversion Rate = ( Number of Trial Users Who Convert to Paid / Total Number of Trial User ) × 100%
EXAMPLE
A SaaS company offers a 30-day free trial, and out of 200 trial users, 40 subscribe to a paid plan. The Trial-to-Paid Conversion Rate would be: Trial-to-Paid Conversion Rate=(40/200)×100%=20%. This means 20% of trial users converted to paying customers.
DEPARTMENT USAGE
Sales: To understand and improve the effectiveness of the sales funnel.
Marketing: To tailor marketing strategies based on the conversion rates and feedback.
Product: To refine product offerings based on user experiences and conversion data.
Customer Success: To enhance user support and engagement during the trial period.
View the collection of Metrics Workshops.