Many SaaS products offer some form of trial period during which a user can test the functionality, the suitability in their context, and overall experience of using the product. These users are known as trial users or trials.
Trials provide a low risk way for a new user to test out a product. They are offered with the intent of converting the trial user into a paid user. Trail Conversion Rate measures the number of trial users converting to a paid model as a percentage of the total number of trial users in any given period. This includes trial users that convert at any point in the trial period, including during and after the trial period has ended.
Trial Conversion Rate can reveal the best-fit customer for your product. By segmenting Trial Conversion Rate data by a variety of user demographics, companies can determine the types of users that convert from free to paid accounts at the highest rates. They can then target their marketing campaigns to focus on attracting the highest converting types of users.
Before you start to track your conversion rates, determine the best pricing model for your business objectives. In addition to free trial and freemium models, usage based pricing is an emerging trend in SaaS where prices are flexible based on the customers' actual usage of the product.
