May 10, 2019

Offer Gamified Trial Extension

4. Revenue  >  Offer Gamified Trial Extension

Offer gamified trial extension to reduce SaaS churn

A perfect way to reduce churn and boost conversions by using gamification for trial extension. Ask users to complete certain tasks (that will make them fell in love with your app) to increase trial duration.

● PERSUASION

Prodpad

Prodpad did an amazing job at using gamification for trial extension.

Dropbox

Dropbox gives users free GBs for completing tasks that keep them engaged and provides them with awesome rewards.

Autodesk

Autodesk used gamification to increase free trial to paid conversions by 15% and trial usage by 54%.

How to use the technique

  • Develop a strategy on what to gamify. What actions and events need to be gamified should be based on research and audience preferences. Do surveys and interviews. Use buyer personas for more details. Our free churn optimization framework will reveal actionable insights. 
  • Divide trial period into small segments. Link segments to tasks and when a user completes the tasks, extend trial by a couple of days (or so). This works best to keep them engaged and they will be least likely to churn.
  • Shorten trial period. Let users earn trial through gamification. When they will earn it, they will be more likely to engage and stick with your app.
  • Use a checklist or progress bar to show users their progress. This will keep them motivated to do more.
  • Keep it interesting. It shouldn’t be boring. Don’t make it all about your app and its features. Don’t make users feel they're using an app. Track user actions.
  • Emphasize on conversions and engagement. Gamification is all about boosting engagement and developing user’s interest in your app so they eventually convert to paid subscription.
  • Track performance. Remove hurdles. Remove steps that take time for completion. Make it easier for users to extend free trial. Tracking and tweaking will become easier with our free actionable guide.

Mistakes to avoid

  • Hurting UX with gamification is a lethal mistake. Don’t ruin UX with gamification. Keep it simple and intuitive. It should improve UX instead of ruining it.
  • Overdoing with gamification can impact your app’s UVP negatively. Make sure gamification doesn’t become the reason why people use your app. Keep it interesting but don’t let it overcome your app features.

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> #1 Framework to Convert Free Trial Users Into Customers

> The Ultimate Guide to Hack Your Free Trial Conversion Rate

> User Onboarding: The UX Behind Our Magically Extending Free Trial

Research evidence

Lucassen and Jansen published a qualitative article in Elsevier on how gamification is and will be used on consumer marketing. They identified three benefits of gamification for businesses (via literature review): Engagement, brand loyalty, and brand awareness. Use of gamification was expected to increase in the future.

Play!

Lucassen and Jansen identified three benefits of gamification for businesses (via literature review): Engagement, brand loyalty, and brand awareness.

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May 10, 2019

Add Motivation To Paywall

4. Revenue  >  Address Motivation On Paywall

Address motivation on trial paywall to reduce SaaS churn

A soft paywall puts restrictions to some features of your app after free trial expiration. This is a perfect approach to reduce churn and motivate users to convert to get access to features that they don’t have access to.

● PERSUASION

Typeform

Typeform is free but it has several features walled that need upgradation.

Appcues

Appcues reduced its free trial from 30 to 14 days and added a soft paywall allowing users to extend the free trial for 5 more days by entering credit card details.

Slack

Slack smartly notifies users to get access to more features (which they're missing now) with an upgrade.

How to use the technique

  • Create a soft paywall strategy. What features to restrict? When to add the restriction? Do you need to target your entire audience? Have a complete strategy for your paywall that ensures the right context and timing. Read our free churn optimization framework for more details. 
  • Restrict some features of users who don’t upgrade after the expiration of free trial. Let them use your app. Remind them about the Aha! moment in a paywall to get them to upgrade.
  • Use in-app notifications to tell users what features are walled. Let users know why a specific feature is walled and how they can unlock it.
  • Use clear CTAs in the notifications and emails. Describe how to get access to the full app. Prominent CTAs with the right placement get attention and reduce churn.
  • Measure performance of soft paywall. Is it really helping you improve conversions and reduce churn? If users aren’t upgrading, consider restricting a few more features. Track user actions. Use our free actionable guide on testing and measuring performance.

Mistakes to avoid

  • Not highlighting the benefits of unlocking walled features. Show users what they're missing and how upgrading to premium will benefit them.
  • Not engaging with users who don’t upgrade and continue using your app with walled features. Don’t ignore them. Connect with them. Engage with them. Persuade them to convert with promotions and rewards.

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> How freemium apps convert users with brilliant upgrade prompts

> From trial to paid–how we accelerated sales by 68% with our very own paywall

> The freemium model and paywall strategies: how much should you give away?

Research evidence

Sjøvaag conducted a longitudinal comparative study to analyze how three Norwegian online newspapers are using the paywall. Findings revealed that premium content is used for paywall while news and syndicated content (not premium) is available for free. Users don’t hesitate to pay for the most valuable content. However, the free content keeps being a major contributor to traffic generation for the three newspapers.

$$$

Use paywalls to increase profit, use free trials and demos to drive traffic.

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Implement with our proven SaaS Churn Optimization Framework

Download a PDF with an exact process we use with our SaaS clients to research, define optimization opportunities and test.

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May 10, 2019

Offer Upgrade With Urgency

4. Revenue  >  Offer Upgrade With Urgency

Offer upgrade with urgency to reduce SaaS churn

Persuade users to upgrade by offering them with promotions that they cannot refuse. A powerful promotion coupled with urgency is a great way to skyrocket free trial to paid conversions.

● PERSUASION

Grammarly

Grammarly does an exceptional job at highlighting the upgrade to a business tier in the interface.

Getresponse

GetResponse offers an 18% discount on annual billing that’s a perfect way to create urgency for upgrade promotions.

Booking

Booking.com smartly uses urgency and promotions to persuade users to book now.

How to use the technique

  • Create relevant promotions based on user data, buyer personas, and your software. Such as a limited time discount. Get feedback from users as to what type of promotions they expect. Use our free churn optimization framework to get help on doing research. 
  • Link promotions to user behavior. For instance, if a user has used a specific feature of your app during the trial, link promotion to that particular feature. You can reduce churn with this simple technique.
  • Create urgency. The upgrade promotion should have an element of urgency attached to it. Let users know this promotion is available for a limited time only.
  • Clearly communicate the promotion. Send emails and notifications to pre-sell promotion. Send regular reminders to make users realize it’s urgent and important.
  • Describe the benefits of an upgrade along with the promotion. Differentiate upgrade promotion from a simple upgrade for persuasion and reducing churn rate.
  • Focus on upgrades. The purpose of the promotion and urgency should be to convert trial users to paid customers. Don’t dilute the actual benefits of the upgrade in the process.
  • Measure conversions. Analyze different upgrade promotions. Improve promotions based on user feedback. This free actionable guide will show you how to do it.

Mistakes to avoid

  • Offering upgrade promotions to all the users. Don’t do it. Only offer upgrade promotions to users who haven’t converted. Making it a norm will negatively impact conversions as users will always expect an upgrade promotion.
  • Fake urgency is suicidal. If it’s urgent, make sure it is real. Remove promotion after the said time period passes. Don’t make it permanent.

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> How to Use Urgency and Scarcity to Improve Conversions

> How freemium apps convert users with brilliant upgrade prompts

> 13 Loss Aversion Marketing Strategies to Increase Conversions

Research evidence

Zhu, Yang, and Hsee published an article in the Journal of Consumer Research (JCR). The authors conducted 5 different experiments to measure the impact of urgency on consumer behavior. The results revealed that individuals are more likely to prioritize unimportant task over important task when the former is characterized by urgency. It is known as mere urgency effect which reveals how consumers value urgency during buying.

!!!

Individuals are more likely to prioritize unimportant task over the important task when the former is characterized by urgency

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May 10, 2019

Optimize Payment Form

4. Revenue  >  Optimize Payment Form

Optimize payment form to reduce SaaS churn

The way how users pay for a premium plan is a critical variable that decides whether free trial users will convert or churn. Optimizing your payment methods for conversion will improve trail to paid conversions.

●● INTUITIVENESS

Soundcloud

Soundcloud let users pay through credit cards and PayPal, the two leading global payment forms.

Mailchimp

MailChimp offers 6 different payment forms including local ones to boost conversions.

Foodora

Foodora increased conversions significantly after adding mobile payments.

How to use the technique

  • Add payment forms consistent with your audience’s preferences. Do research and find what payment forms different personas prefer (if you don’t have this information already). This will help you offer the most relevant payment methods that users are familiar with. Conducting research will become easier if you'll read our free churn optimization framework. 
  • Use local payment forms. A credit card isn’t a global payment method. Users prefer local payment methods like Alipay in China, Visa in the US, SEPA in Germany, online banking in Indonesia, etc. Add as many payment methods as you can. The more you have, the better. Don’t give users a chance to churn due to unavailability of a payment method of their choice.
  • Add mobile payments. Not only that you should let users pay from their mobiles such as Apple Pay and Google Pay but the checkout process should be optimized for mobile.
  • Address security. One major reason why users will churn after the expiration of trial is that they're hesitant to share payment details. Make them feel secure. Add trust seals. Use HTPPS.
  • Add reward. It’s a known technique to persuade users to convert. Add a reward with payment details such as PDF, personalized help, a cheat sheet, etc.
  • Test conversions. Are there any payment forms that have a high conversion rate? Track everything related to payment forms for conversion optimization. This free guide will help you with actionable insights on how to do it.

Mistakes to avoid

  • Not addressing cart abandonment. Not tracking and addressing cart abandonment is a big mistake. Connect with abandoned users who left a payment page without conversion. Send emails to identify issues and to offer help.
  • Sticking with one payment form. Visa is a famous payment method but doesn’t make the mistake of only adding credit cards as a payment form. Add multiple methods to make payments easier.

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> 40 Checkout Page Strategies to Improve Conversion Rates

> Discover the preferred ways to pay in markets around the world.

> 5 ways to optimize payments for profitability 

> What Is the Link Between Payment Methods and Conversion Rates?

Research evidence

TSYS 2016 US consumer payment study surveyed 1000 consumers to understand payment preferences. The study found that consumers prefer different payment forms depending on where they're shopping. However, credit card remains the most used and preferred payment method among others.

40%

When presented with the question: “When given a choice, what payment form do you prefer?”, 40 percent of participants selected credit

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May 7, 2019

Less Than 2-Steps Forms

4. Revenue  >  Less Than 2-Steps Forms

Include less than 2-steps forms to reduce SaaS churn

Make it simple and easier for users to upgrade to a paid plan. Let them upgrade plan in two steps and remove all barriers that cause friction. A major reason for high churn is friction in the upgrading process.

●● INTUITIVENESS

Insound

Insound increased its checkout conversions by 54% with a minor tweak.

Intuit

Intuit added a live chat option on its checkout page which increased conversions by 20%.

Starngeloopnetworks

Starngeloopnetworks increased conversions by 66% after removing extra pages from its checkout process.

How to use the technique

  • Use existing data to simplify the process. You have personas, you have their usage statistics, you have enough personal details, and behavioral data. Use it to make the entire process simple and effective. If you don’t know how to do it, grab our free churn optimization framework. 
  • Reduce the number of steps. The steps a user has to take to convert from free to a paid customer should be minimized. If you have payment details, it should be a one-step process. If you don’t have payment details, it shouldn’t have more than two steps. You can minimize churn with this simple technique.
  • Reduce form fields. Form fields add friction. Keep the form short. Remove unnecessary fields. You'll get all the time to get more details after they will convert.
  • Add progress notification. Let users know how many steps are left. It will reduce churn and they will be more likely to complete the transaction.
  • Continuous improvement is the key to success. Keep removing barriers as long as it improves conversions. Read this free guide to get more details on how to do it practically.

Mistakes to avoid

  • Adding distractions. A big mistake is related to adding distractions that make users churn. Remove everything that’s not needed from the process.
  • Asking for irrelevant information will increase the churn rate because it irritates users. And while they're busy adding information, they might lose attention and might leave in the middle.

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READ MORE ON THE TOPIC

> 5 Ways to Convert Loyal Freemium & Trial Users Into Happy Paying Customers

> Top 5 Ways to Increase Free Trial Conversions & Revenue

Research evidence

Baymard conducted a survey to understand why consumers leave cart without paying. Over 26% of consumers reported that they will leave a website if the checkout process is long or complicated. Removing friction and making the checkout process convenient is a sure way to improve conversions and reduce churn.

26%

According to Baymard, this is exactly how many people get so tired with your long and lousy checkout flow that they leave and never get back.

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May 7, 2019

Include Clear “Upgrade” CTA

4. Revenue  >  Include Clear “Upgrade” CTA

Include clear “Upgrade” CTA to reduce SaaS churn

A call to action lets users know what they should do to upgrade their plan. It tells users they can upgrade anytime without any hurdle. A clearly visible, prominent, and descriptive CTA reduces churn.

●● INTUITIVENESS

Branch

Branch uses descriptive CTAs within its app to let users know how they can access a premium feature.

Buffer

Buffer has a permanent above the fold CTA with a strong copy to persuade users to upgrade whenever they're ready.

Zapier

Zapier shows users simple but descriptive CTAs when they access a feature not available with their plan.

How to use the technique

  • Personalize CTA. Use behavior data to make CTA relevant. For example, share usage details or mention a recent action in the CTA copy. Link CTA to buyer personas for better customization. Use our free churn optimization framework to get better at personalization and research. 
  • Add CTA in the app. Make it visible all the time. Keep it above the fold. This will constantly remind users of what they're missing and how to upgrade. It will reduce churn significantly.
  • Make CTA descriptive. Describe benefits in the CTA copy. Add details as to what will happen after the click. Use power words.
  • Use contrasting colors. The CTA has to be prominent and fairly visible. It should grab attention instantly. Use contrasting colors and white space for prominence.
  • Add CTA in all the emails you send to users after sign up. Adding a CTA in email sequence will increase trial to paid conversions.
  • Test different variations. Create multiple CTA buttons, place them at different locations, and test them all for conversion optimization. This free guide will show you how to do it.

Mistakes to avoid

  • Using generic CTAs. Don’t do it. CTAs like ‘click here’ and ‘more info’ won’t work. Spend time to create better CTAs.
  • Not making UVP clear. Text around the CTA should be relevant and it needs to focus on the UVP and benefits that users will get after the upgrade. CTAs don’t survive all alone without any context.

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> How to convert free trial users to paying customers?

Research evidence

Jeffrey Vocell analyzed 330K CTAs over a time period of 6 months. He found that personalized CTAs convert 202% better than other types of CTAs. He calls them smart CTAs that are relevant to the user’s interest. This makes CTAs appealing and users are more likely to click and convert.

202%

This is how much better personalized CTAs convert in comparison with other types of Call To Action buttons. The lesson? Relevant = Good.

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May 7, 2019

Send An Expiry Warning

4. Revenue  >  Send An Expiry Warning

Send an expiry warning to reduce SaaS churn

Notifying users when their trial is about to expire will remind and motivate them to upgrade. The purpose of expiry warning is to nudge users so they don’t churn and continue using your software.

●●● FUNCTIONALITY

Squarespace

SquareSpace let users extend their trial in the warning email and also tells them what benefit they will get if they choose to upgrade.

Dropbox

Dropbox sends a short warning email to its users that reminds them, tells the benefit of upgrading, and offers multiple plans.

CloudApp

CloudApp has an amazing expiry warning email template that’s extremely personalized and relevant to user behavior.

How to use the technique

  • Send personalized warnings. The best expiry warnings are the ones that are highly personalized. Refer to usage data, pain points, challenges, how the app has been used so far, and relevant information in an email to boost engagement. Refer to our free churn optimization framework for more help.
  • Craft awesome email copy. Create a great email copy. The way how you craft copy is critical for conversions and reducing churn. Keep it short and relevant. Use small paragraphs, bullets, and subheadings. Use interactive media.
  • Tell users how much time they have to upgrade their account. Let them know what will happen if they will fail to upgrade.
  • Add a clear CTA. It is essential to have a clear and descriptive CTA in expiry warning emails. Explain how they can upgrade and continue using the app.
  • Share the benefits of upgrading the plan. An expiry warning doesn’t just have to be a warning rather it needs to explain benefits they have been enjoying and the benefits they will enjoy with a premium plan. Explain the difference between free and premium plan. This works best to minimize churn.
  • Provide help. Not all users are ready to upgrade while others are not sure whether they need to upgrade. Add customer support phone numbers and emails, and invite users to contact you for help.
  • Track conversions. Create multiple expiry warning templates and copies. Send on different timings. Monitor success rate and conversion rate. And select the best-performing sequence and template. Read more on the science of testing and tracking in our free ebook. 

Mistakes to avoid

  • Not highlighting app benefits. An expiry warning shouldn’t just be a warning email. Use it to pitch your premium plan. Explain the benefits. Make users realize that switching to premium is the best way to move forward.
  • Not extending the trial. What you do if users don’t convert? Don’t let them walk away just like that. Not offering trial extension is a big mistake that makes users churn. Offer an extension. Let them stay with you for a few more days. Try changing their mind during the extension period.

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> #1 Framework to Convert Free Trial Users Into Customers

> Are Your Free Trial Emails Making You Look Desperate? Here’s How to Fix That

> Trial expiration email best-practices

Research evidence

Listrak analyzed email campaigns of over 950 retailers in a study to track open rates, click through rates, conversions, and revenue per email. Replenishment emails had the highest open rate (53.6%) which was the highest open rate for all the triggered email campaigns analyzed in the study. This shows the importance of sending expiry emails to users.

54%

This is an open rate of replenishment emails whic his the highest in comparison with other email types.

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May 6, 2019

Send Usage Overview

4. Revenue  >  Send Usage Overview

Send usage overview to reduce SaaS churn

Increasing free to paid conversions gets easier when you regularly remind users about the benefits they are getting on real examples from their experience. Usage overview emails and in-app prompts keep users motivated for conversion.

●●● FUNCTIONALITY

Soundcloud

SoundCloud shares usage details with its users’ right in its app with a clear CTA.

Google_Drive

Google Drive has a permanent usage stat in its footer with a clear CTA.

Zendesk

Zendesk sends purely informative usage overview emails that motivate users to use more of their app.

How to use the technique

  • Send timely reminders. Create an email sequence based on usage details. Personalize reminders. Use data from buyer personas for personalization. Our free churn optimization framework will show you how to do it practically.
  • Use in-app notifications. Emails aren’t enough, send in-app notifications on usage details. Show expiration date and time so users don’t churn unintentionally.
  • Add a CTA. A clear call to action in the email to upgrade the plan is an absolute must. Usage overview without a CTA won’t tell users what they're supposed to do next.
  • Send usage tips. Tell users how they can use remaining free resources. Send actionable tips with the benefits of using more. If they will keep using it, they won’t churn and will be more likely to convert to a paid plan.
  • Show how to upgrade to remove limitations. Usage overview emails and notifications should have clear instructions on how to upgrade to use the software without any capacity restrictions.
  • Track conversions. It is all about converting free users to customers. Implement a tracking code to measure the impact of individual emails and notifications on conversions. Here is a free resource to learn more about our approach to research & tracking.

Mistakes to avoid

  • Overdoing it. Sending too many usage tips and overview notifications isn’t recommended. Don’t spam. Send notifications on regular intervals (after a couple of days).
  • Not persuading to upgrade. The whole purpose of sending usage over is to motivate users to convert. Share usage details with a strong CTA to persuade users to convert.

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> #1 Framework to Convert Free Trial Users Into Customers

Research evidence

Harvard published an article where they argued that the more a user uses free service, the more likely one is to convert to premium. Sending usage details with an intention to persuade users to use more service (because they're getting it free) and to let them know of expiration (if they're already enjoying it) will improve conversions.

$0

According to Harvard's Research, thhe more a user uses free service, the more likely one is to convert to premium. So don't be greedy!

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May 6, 2019

Set The Right Limitations

4. Revenue  >  Set The Right Product Limitations

Set the right product limitations to reduce SaaS churn

Offering limited features to free users is a smart technique to motivate users to switch to a premium plan. Carefully selecting and setting the right limitations will significantly improve free trial to paid conversions and will reduce churn.

●●● FUNCTIONALITY

Mailchimp

MailChimp smartly put limits on free users. Their core feature (autoresponder) is fully available to free users but they don’t get access to add-on features.

Selz

Selz makes it absolutely clear what a user will miss in each plan. Even premium plans come with limitations which keeps users motivated to move to the next plan.

Zapier

Zapier clearly distinguishes between free and premium plan. Users get to know what they will miss with the free plan.

How to use the technique

  • Choose appropriate limitations. Should you limit features, output, usage, capacity, or something else? This should be linked to customer lifecycle and buyer persona. Let them solve their big problem with your app but with restrictions. This will motivate them to convert and will reduce churn. Read more in our free churn optimization framework.
  • Decide what features to offer free users. Of course, you can offer all the features but do apply restrictions (such as time) so as to motivate users. Else, they will stick with free plan forever.
  • Differentiate premium from the free plan. There should be a clear and significant difference between premium and freemium. It should be evident.
  • Limited support. Use it with care. Limited support doesn’t mean not responding to the queries of free users. Use limited support as a differentiator to persuade them to convert.
  • Tell users what they're missing. Send emails. Send in-app notifications. Use powerful CTAs to show them how they can get what they're missing.
  • Make conversion easy. Keep conversion straightforward. Allow users to upgrade their plan with one-click. This works best to reduce churn and increase conversions.
  • Track conversions. Measure performance and conversion rate. Tweak limitations for comparison. Do users become paid customers? Read our free guide to learn everything about testing and tracking.

Mistakes to avoid

  • Not setting limits at all. This can prove to be suicidal for your business. If there aren’t any limits and free users can enjoy your app without any restrictions, they won’t convert. There has to be something missing to motivate them.
  • Limiting the core feature. Don’t limit the core feature of your app. Let users fully explore your app’s primary feature. It is best to partially limit the core feature.

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READ MORE ON THE TOPIC

> The Ultimate Guide to Freemium

> Best Free Trial Practices for B2B SaaS

> Making “Freemium” Work

Research evidence

Vineet Kumar published an article in Harvard Business Review where he discussed how to make freemium work for your business. The purpose of a freemium plan is to get new users. It should be clear upfront what is be free and how you'll motivate free users to buy a premium plan. Make users understand your premium offer and differentiate it from freemium.

Free

Make it clear upfront what is free and what isn't to maximalize your conversion and cut down churn. It's always good to set-up expectations

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