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Posted by / 14-Nov-2020 19:59

As per one of Totango’s reports, companies which didn’t require credit card information showed a higher end-to-end conversion percentage when compared to those that ask for the information for the free trial.So what else was the underlying reason behind this data? According to him, by setting up the credit card barrier, you’re only adding to the distractions, and affecting the trust factor. A company that’s just coming out with the beta version of its product Typical characteristics of such a product will be that it caters to a niche set of audience, and hasn’t found its product-market fit yet.A user might end up spending more with Mail Chimp at a later stage, but will initially go with Mail Chimp, because they face no friction when they want to try out the product.The user’s logic is simple: When I don’t even know whether I want to buy the product or not, why would I pay a dollar for it?Turns out that a free trial brought in more revenue as opposed to a money back guarantee. Does this mean that if you’re offering a free trial, you should ask for the user’s credit card information during sign-up?How will that affect the results of the free trial? Let’s take a look at both sides of the coin, learn what their perks and pitfalls are, when to use them, and how to nail them right. If you ask for a credit card number during a free trial, two outcomes are bound to happen: Granted, the sign-up rate will be lower compared to this model’s counterpart, but the trial-to-paid conversion will be more.

Such situations will inevitably lead to them sending you emails requesting refunds. If your intent is to get more people to try out your product, then the best option is to make your sign-up process as frictionless as possible: no credit card details required, no strings attached.The baseline is this: Unless people like your product, they wouldn’t want to share their personal details with you. (One exception could be the enterprise software products, where offering a demo will make more sense than offering a free trial.This one deserves a post of its own, and hence we shall stick to the main topic for now.) To increase the conversion rate of his product, Quick Sprout Traffic System, Neil Patel experimented with two options: a free trial with credit card and a money back guarantee, and guess what?Determine the Common Conversion Activities (CCAs) of your most active customers, motivate your trial users to perform those activities, and design your app to support the same. In fact, this process helped in boosting our trial-to-paid conversion rate from 8% to 15%. Venture capitalist Christopher Janz has given a pretty neat model to check which strategy works for your business. Basically, you just have to replace the blue values with your company’s values, and watch the magic happen.

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