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