SaaS Marketing Strategy - Free Trial Success Secret 5: Credit Cards are a Red Herring
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SaaS Marketing Strategy - Free Trial Success Secret 5: Credit Cards are a Red Herring

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SaaS Marketing Strategies to Make Your Web App Dominate...

SaaS Marketing Strategies to Make Your Web App Dominate

SaaS Marketing Strategy Focus: Scalable Customer Acquisition

Through scalable SaaS Marketing practices, Sixteen Ventures lead by Lincoln Murphy, provides software-as-a-service (SaaS) and Web App companies everything they need to acquire customers, improve retention, and grow the lifetime value of those customers.

New Challenges – and Opportunities – Require an Optimized SaaS Marketing Strategy

The cloud introduces new challenges for traditional Independent Software Vendors (ISV), but even for those who are building new Software-as-a-Service (SaaS) or Web Applications (Web Apps) from scratch, many challenges exist, with marketing being one of the biggest.

The Goal of Your SaaS Marketing Strategy: to Quickly Create Profitable Customers

Because Software-as-a-Service (SaaS) and Web Apps are very often sold on a recurring revenue, monthly basis – without a large upfront payment like traditional software – the key to successful SaaS Marketing is efficiency and scalability.

Payback Customer Acquisition Costs Quickly with a Great SaaS Marketing Strategy

Regardless of the type of sales process, SaaS Marketing requires you to leverage scalable methods to attract the right audience up-front, to get the customer to try before they buy, and the methods used to convert your prospect to a paying customer.

SaaS Marketing ultimately breaks down to a per-customer cost and should be paid back as quickly as possible in an effort to turn new customers into profitable customers.

But, when your Free Trial fails to convert customers, it’s probably doing exactly what it was designed to do!

You need to design your Free Trial to actually sell your product if you want to make any money in the SaaS or Web App business.

So I’ve put together a list of 7 Secrets to Free Trial Success... how to turn your SaaS Marketing efforts - your sales process - and your Free Trial - into a Customer-Creating Machine.

This is SaaS Marketing / Free Trial Domination Secret #5: Credit Cards are a Red Herring

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SaaS Marketing Strategy - Free Trial Success Secret 5: Credit Cards are a Red Herring Presentation Transcript

  • 1. Lincoln Murphy Presents... The 7 Secrets to Free Trial SuccessTurn your ‘Free Trial’ into a Customer-Creating Machine! Lincoln Murphy http://sixteenventures.com
  • 2. 7 Secrets to Increasing Conversions with Free Trials Secret #5: Credit Cards are a Red Herring Lincoln Murphy
  • 3. 7 Secrets to Increasing Conversions with Free Trials “I’ll ask for a credit card up front so only serious, highly qualified leads enter my funnel” - many SaaS vendorsSecret #5: Credit Cards are a Red Herring Lincoln Murphy
  • 4. 7 Secrets to Increasing Conversions with Free Trials Vendors think asking for a Credit Card up front qualifies people, but it simply does not.Secret #5: Credit Cards are a Red Herring Lincoln Murphy
  • 5. 7 Secrets to Increasing Conversions with Free Trials One member of my Free Trial Dominator program was adamant that this was the case...Secret #5: Credit Cards are a Red Herring Lincoln Murphy
  • 6. 7 Secrets to Increasing Conversions with Free Trials So they convert 48% of their Free Trial signups... pretty good right?Secret #5: Credit Cards are a Red Herring Lincoln Murphy
  • 7. 7 Secrets to Increasing Conversions with Free Trials Until you look at their overall numbers... Unique Visitors (UV): 15k/mo Trial Signups: 327 (2.18%) Trialists that convert to customers: 180 (55% of trialists/ 1.2% overall)Secret #5: Credit Cards are a Red Herring Lincoln Murphy
  • 8. 7 Secrets to Increasing Conversions with Free Trials How many people would have signed-up for the Free Trial if they didn’t ask for the credit card up front?Secret #5: Credit Cards are a Red Herring Lincoln Murphy
  • 9. 7 Secrets to Increasing Conversions with Free Trials Another vendor shared that they got rid of the Credit Card requirement because so many complained about the charges.Secret #5: Credit Cards are a Red Herring Lincoln Murphy
  • 10. 7 Secrets to Increasing Conversions with Free Trials In fact, most Web App vendors who’ve dropped the Credit Card requirement did so because of complaints from customers about being billed at the end of the Free TrialSecret #5: Credit Cards are a Red Herring Lincoln Murphy
  • 11. 7 Secrets to Increasing Conversions with Free Trials Some of those billings resulted in charge backs (bad for your relationship with your processor)Secret #5: Credit Cards are a Red Herring Lincoln Murphy
  • 12. 7 Secrets to Increasing Conversions with Free Trials Many result in bad feelings that have to be - and hopefully are - resolvedSecret #5: Credit Cards are a Red Herring Lincoln Murphy
  • 13. 7 Secrets to Increasing Conversions with Free Trials All of those complaints and refund requests add overhead that could be avoidedSecret #5: Credit Cards are a Red Herring Lincoln Murphy
  • 14. 7 Secrets to Increasing Conversions with Free Trials This idea of taking a credit card to start the trial and then 31 days later on a 30- day free trial isn’t on the surface a bad idea, but the execution of the post-signup strategy is often flawed.Secret #5: Credit Cards are a Red Herring Lincoln Murphy
  • 15. 7 Secrets to Increasing Conversions with Free Trials Some vendors literally don’t want to bother the person after they’ve signed-up because reminding them that they signed-up might remind them to cancel their accountSecret #5: Credit Cards are a Red Herring Lincoln Murphy
  • 16. 7 Secrets to Increasing Conversions with Free Trials Not realizing that they will find out - when you bill them - and since they haven’t heard from you in almost a month, the likelihood that they’ll be upset by this charge on their bill that they don’t recognize and ask for a refund (or initiate a chargeback) is much higher than if you communicated with them the whole time.Secret #5: Credit Cards are a Red Herring Lincoln Murphy
  • 17. 7 Secrets to Increasing Conversions with Free Trials And of course there are the vendors who have high conversion rate percentages, but when you look at their super-low initial Free Trial sign-up numbers, and the actual number of conversions, it is easy to see that the Credit Card requirement is turning people off.Secret #5: Credit Cards are a Red Herring Lincoln Murphy
  • 18. 7 Secrets to Increasing Conversions with Free Trials Yes, asking people for a Credit Card up front turns them off... you aren’t “qualifying them out”.Secret #5: Credit Cards are a Red Herring Lincoln Murphy
  • 19. 7 Secrets to Increasing Conversions with Free Trials If someone wants to become a customer today, give them the opportunity to sign- up with their credit card and pay, today.Secret #5: Credit Cards are a Red Herring Lincoln Murphy
  • 20. 7 Secrets to Increasing Conversions with Free Trials But if they just want to try (remember, they think they’re just ‘trying’ the product!) your product, they aren’t ready to buy so they aren’t ready to plunk down the credit card; require it, and they’ll bounce.Secret #5: Credit Cards are a Red Herring Lincoln Murphy
  • 21. 7 Secrets to Increasing Conversions with Free Trials CC-walls turn off people who arent ready to commit without seeing what you’ve gotSecret #5: Credit Cards are a Red Herring Lincoln Murphy
  • 22. 7 Secrets to Increasing Conversions with Free Trials But the truth is, the whole “Credit Card to start a Free Trial” debate is a Red Herring... something that causes us to take our eye off the ball, to focus on it and not on what really matters.Secret #5: Credit Cards are a Red Herring Lincoln Murphy
  • 23. 7 Secrets to Increasing Conversions with Free Trials Whether you require a credit card or not to start the Free Trial (<7% of the SaaS vendors that I’ve run into do, BTW), to be successful, you need to have a strong post- signup Free Trial strategy that drives Engagement, Investment, and Conversion!Secret #5: Credit Cards are a Red Herring Lincoln Murphy
  • 24. For the Ultimate Free Trial Resource Guide, visit:http://sixteenventures.com/free-trial-resource-guide