How to

Increase SaaS User Conversions from Freemium to Paid Plans by iridize

The Data

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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

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Conversion from SaaS

Freemium is a link in

the chain of a

successful onboarding

and adoption process.

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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

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Balance should

be maintained

between two

parameters: Source: http://www.flickr.com/photos/29174632@N00/2208944056

Is Freemium

right for you?

Ask yourself:

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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.

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The consensus is that conversion

rates for Freemium services are

around 2-3%.

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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.

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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

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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.

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If you are still

debating which free

software model is

right for you, read

our SaaS free trials

conversion to paid

plans Slideshare.

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How to

Engage Users

with the

Freemium Model?

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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.

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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.

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Earn your users’

loyalty. Do that by

providing stellar

customer service and

by being upfront and

frank about the

upgrade options.

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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.

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Stellar

Customer Service

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Customer service is perhaps the single most

important expression of care and concern a

software service can show its users.

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Changes

are

allowed

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Good news: your

users are well aware

that you are a

budding business or

a startup.

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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:

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

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Icons in this presentation made from Flaticon.com: Freepik by

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