- Time-based trials often expire before users experience real value
- Usage-based trials align better with consumption-priced products
- Customers learn the metric and can forecast real production needs
- Trial usage data provides early insight into feature adoption and pricing fit
- Usage-based trials control infrastructure cost while improving customer experience
Free trials can be a great way to provide prospective users with hands-on experience. But what's the best way to go about conducting a trial? SaaS trial conversion rates are incredibly low — "66% of SaaS vendors reporting Free Trial conversion rates of 25% or less." For companies with usage-based products, the answer is clear: nix time-based trials and opt for usage-based trials instead.
1. Time-Based Trials Rarely Work
How many times have you downloaded a time-based trial with the best of intentions and found you just can't get to use it in the time allotted? This is particularly true if the trial requires any set up, 3rd party integrations, or back-end approvals with other teams. Time-based trials are meant to create a sense of urgency. But typically that urgency is only felt by the company offering the trial. The person using it is usually on a completely different timeline.
2. Usage-Based Trials Provide an Easier Transition to Production
If you are planning on putting usage-based pricing in place, then usage-based trials will make it easier for your customers to understand and predict how much of your product or service they will likely need when they move to production. It will also get them more familiar with your metric and will help them put a business case together to support moving to the next phase.
3. Usage-Based Trials Are an Early Indicator for Pricing Success
Curious about what features are being used? Usage-based trials can give you real-time visibility into which capabilities or features are most widely adopted. These trials are fantastic for companies introducing consumption-based pricing into the market for the first time — especially if they are using a brand new metric. They give you a window into usage and help you understand where customers are getting hung up and whether or not your new pricing model will fly.
4. Usage-Based Trials Allow You to Minimize Costs and Maximize Customer Experience
If you have a new product or service with metered pricing, you likely have to account for some costs on the backend. These infrastructure and hosting costs can quickly add up and will be difficult to predict with time-based trials. Going with usage-based trials helps curb costs and ensures organizations can predictably plan and support customers to ensure they have the best possible experience throughout their trial.
In the End
Trials are a great way to bring new customers into the fold. But just because you build it, doesn't mean customers will come. Making sure your trial is easy to use and adopt is key to driving conversion. And this often means throwing time-based trials out the window in favor of usage-based trials — especially when it comes to usage-based pricing and products.