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How to Increase SaaS User Conversions from Freemium to Paid Plans

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Which free plan model is right for your business? How do we engage users successfully? Are changes allowed? Lessons we learned as a startup and now want to share with our peers. Enjoy!

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How to Increase SaaS User Conversions from Freemium to Paid Plans

  1. 1. How to Increase SaaS User Conversions from Freemium to Paid Plans by iridize
  2. 2. The Data iridize.com Which is better for SaaS – Freemium or Free Trial? Unfortunately, there is no simple answer. It depends on the nature of your service and on your user-base. Image source: Stuart Miles @ FreeDigitalPhotos.com
  3. 3. iridize.com Conversion from SaaS Freemium is a link in the chain of a successful onboarding and adoption process.
  4. 4. iridize.com There is no single neat trick for getting free users to randomly decide to start paying. So we put conversion in the right context. Img source under CC license: http://www.flickr.com/photos/pasukaru76/5944308910
  5. 5. iridize.com Balance should be maintained between two parameters: Source: http://www.flickr.com/photos/29174632@N00/2208944056 Is Freemium right for you? Ask yourself:
  6. 6. iridize.com Balance should be maintained between two parameters: Source: http://www.flickr.com/photos/29174632@N00/2208944056 It’s safe to assume the average SaaS user “tries out” 1-3 services/ webapps a week. Lengthy onboarding processes are less effective. A Freemium SaaS plan will work only with a simple service.
  7. 7. iridize.com The consensus is that conversion rates for Freemium services are around 2-3%.
  8. 8. iridize.com If you are a B2C service, you will need to establish a huge free-user-base until you can convert those 2-3 out of each 100 users.
  9. 9. iridize.com If you are an SMB or startup, you will need to hold on for a long time, raise funds and find investors before this business model will work. Img source: stockimages @FreeDigitalphotos.net
  10. 10. iridize.com However, if you’re a B2B – you’re in luck: business owners are more likely to spend money on services and applications than individual users.
  11. 11. iridize.com If you are still debating which free software model is right for you, read our SaaS free trials conversion to paid plans Slideshare.
  12. 12. iridize.com How to Engage Users with the Freemium Model?
  13. 13. iridize.com A common Freemium strategy: provide a service that becomes indispensable. Eventually, your users will have to upgrade their account so as not to lose their storage space/ data.
  14. 14. iridize.com Balance the free/paid plans: The free plan is enough for base users. The paid plan is where free users will want to expand and grow into. Loyal, long-time users naturally evolve into power users.
  15. 15. iridize.com Earn your users’ loyalty. Do that by providing stellar customer service and by being upfront and frank about the upgrade options.
  16. 16. iridize.com LinkedIn is a terrific example: the average professional can enjoy the platform’s many services and opt to pay only if they want a specific set of helpful tools.
  17. 17. iridize.com Stellar Customer Service
  18. 18. iridize.com Customer service is perhaps the single most important expression of care and concern a software service can show its users.
  19. 19. iridize.com Changes are allowed
  20. 20. iridize.com Good news: your users are well aware that you are a budding business or a startup.
  21. 21. iridize.com  Implement them gradually  Over-communicate them in advance. Your users will be tolerant toward changes in your interface, pricing model and features – so long as you:
  22. 22. Why Iridize Mobile?We Hope That Was Helpful! Read more about onboarding solutions at blog.iridize.com Or request a demo at contact@iridize.com iridize.com
  23. 23. Icons in this presentation made from Flaticon.com:Freepikby iridize.com

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