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10 Learnings
About Free Trials
Patrick Chase & Tomasz Tunguz
Top 10 Learning about Free Trials
The Survey
590 Responses
24 Questions
1000+ Lines of
Code
599
Respondents Across ARRs, ACVs, and Customers
Respondents Span Many Different Buyers
16% of Respondents Target Marketers
Goals
Contract
Length
Annual Contracts Most Common in MidMarket
80% of Respondents with $15-$50k ACV Use Annual Contracts Predominantly
Stick with
Annual
Contracts
1
Logo
Retention
Two Thirds Retain 80%+ of Logos; One Third Retain
90%+
Larger Customers Churn Less
45% of Respondents Targeting Enterprise Retain 90-100% of Customers/Logos
Strive for
90% Logo
Retention
2
Net Dollar
Retention
Top Quartile Expand Accounts by 120% or More
Enterprises Expand More than SMBs
34% of Respondents Targeting Enterprise Exhibit NDR of 100%-120%
NDR Target
Should be
100-140%
3
Trial Structure
Time-Based Free Trials Most Common
58% of Respondents with ACVS between $15k-$50k Use Time Limited Trials
Reason: Time & Usage Trials Convert Up to 2x Better
12% of Leads in Usage Limited Trials Convert to Paid
Explore Time
and Usage
Based Trials
4
Trial Length
14 Day Trials Most Common; 30+ Days Second Most
47% of Respondents With Time Limited Trials Cap Trial Length at 14 Days
But Conversion Rate Same Across Trial Lengths
16% of Leads in 7 Day Trials Convert to Paid on Average
Trial Length
Doesn’t Alter
Conversion;
Shorten It
5
Salespeople
Have
Salespeople
Contact
Freemium
Leads75%
For good reason: Salespeople increase conversion 3x
15% of Assisted Leads Convert to Customers for the Median Respondent
Sales Assistance Impact Evident at Every ACV
The Median Respondent with 15k-50k ACVs Converts Assisted Leads at 20%
Hire
Salespeople
to Call Your
Leads
6
Conversion
50th Percentile of Respondents Report 4%
Unassisted Conversion
25th 50th 75th
1% 4% 12%
Aim for 4%+
Unassisted
Conversion
7
50% of Respondents Report 15.5% Assisted
Conversion
25th 50th 75th
6.8% 15.5% 30%
Shoot for
15%+
Assisted
Conversion
8
Activity
Qualification
Activity Scoring Effectiveness Decreases with Price
4% of $50-$150k Leads Which Have Been Scored By Activity Convert to Paid
Question
Activity
Scoring in
Enterprise
9
Payment
of
Respondents
Require
Payment Info12%
But the Data Suggests Many More Should
On Average Unassisted Leads with Payment Collected Before Trial Convert at 10%
Test
Requiring
Payment at
Outset
10
Summary
Summary
1. Stick to Annual Contracts
2. Strive for 90% Logo Retention
3. Target 100-140% NDR
4. Prefer Time and Usage Based Trials
5. Shorten Trial Length
Summary
6. Hire Sales People to Call Leads
7. Aim for 4% Unassisted Conversion
8. Shoot for 15% Assisted Conversion
9. Question Activity Scoring in Enterprise
10. Test Requiring Payment
tomtunguz.com
Top 10 Learning about Free Trials
Appendix
Contract Length by Buyer - Same!
Net Dollar Retention by Buyer - Same!
Time-Based Free Trials Most Common; Features and
Seats Increase with ACV
50% of Respondents Report 5% Unassisted
Conversion
50% of Respondents Report 15% Assisted Conversion
Conversion Rates by Contract Length - Same!

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