Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

How to Increase SaaS User Conversions from Freemium to Paid Plans


Published on

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!

Published in: Technology
  • Be the first to comment

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 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 @
  3. 3. Conversion from SaaS Freemium is a link in the chain of a successful onboarding and adoption process.
  4. 4. 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:
  5. 5. Balance should be maintained between two parameters: Source: Is Freemium right for you? Ask yourself:
  6. 6. Balance should be maintained between two parameters: Source: 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. The consensus is that conversion rates for Freemium services are around 2-3%.
  8. 8. 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. 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
  10. 10. 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. 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. How to Engage Users with the Freemium Model?
  13. 13. 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. 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. Earn your users’ loyalty. Do that by providing stellar customer service and by being upfront and frank about the upgrade options.
  16. 16. 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. Stellar Customer Service
  18. 18. Customer service is perhaps the single most important expression of care and concern a software service can show its users.
  19. 19. Changes are allowed
  20. 20. Good news: your users are well aware that you are a budding business or a startup.
  21. 21.  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 Or request a demo at
  23. 23. Icons in this presentation made from