You’re here because freemium users aren’t upgrading to paid subscriptions, right?
So you want to learn how to nudge them to click the upgrade button?
We’ve got your back.
Getting freemium users to become paying customers is one of the biggest challenges faced by B2B SaaS subscription businesses.
A recent study shows that freemium plans have conversion rates of about 5%, while free trial conversion rates are at around 17%.
You have to ensure the free version offers enough features and resources to convince users to upgrade to the premium plan so that they can gain additional features.
Aside from that, there is no one-size-fits-all technique to boost your freemium conversion rate.
Some proven strategies for converting B2B SaaS freemium can help businesses to boost freemium conversion rates.
The freemium model is a B2B SaaS subscription pricing strategy in which you offer your most basic product features for free but impose usage restrictions.
The idea behind the freemium model is to get users to test the value of your product and upgrade to the premium version once their needs change after ascertaining that your product will benefit them.
The freemium version of your product is beneficial in many ways including:
To boost your freemium conversion rate, you need to use a mix of the following strategies:
To convert freemium users into paying customers, you need to treat them the way you treat your paying customers.
Here, you need to help freemium users to experience the value your product offers while letting them know what direction to follow.
You should focus on helping them if they experience trouble using your software solution to give them an excellent experience with your product.
While at it, ensure you let freemium users understand the benefits of your premium version while avoiding being pushy.
Remind them what they are missing for not upgrading to the premium version. You could also show businesses that are benefiting from your product by upgrading.
To convert free trial users with this strategy, all you need to do is to send them a quick email with “your free trial ends soon, upgrade to unlock the full potential of---”
This will tell them that they will no longer be able to enjoy your product and encourage them to upgrade to a paid version.
For freemium users, it’s a different game. However, you can still get them to act by offering them time-sensitive offers.
LinkedIn leverages this strategy to get users to upgrade to their premium version.
For instance, they will send you a notification with “You appeared in 13 searches this week”.
Then when you open the message, you will get another one with “see who's viewed your profile in the last 90 days with Premium”
In that case, LinkedIn shows you what you’re missing and that when you upgrade to their premium version, you will be able to send direct messages to people viewing your profile.
The freemium model’s main goal is to enable users to experience the product value but not fully, then convince them to upgrade to experience the full potential of your product.
However, you have to educate them more about your product and let them understand how to get the best out of it.
This is where providing a personalized user onboarding experience becomes helpful.
By personalizing the onboarding experience, you can easily push them toward the activation button.
As explored in the Younium SaaS subscription billing guide, B2B SaaS businesses can educate users about subscription billing and how the subscription billing process works.
Unless you make users thirsty to want more of your product, they will not upgrade.
In this case, you need to offer only the basic features in the freemium plan and promise users more advanced features when they upgrade.
Here, you need to tease your freemium users in a way that will get them to take action.
Instead of designing your pricing pages showing a comparison of features included in the freemium and premium tiers, you need to go further and show them what they are missing for not upgrading.
How do you achieve this?
Show your freemium version on the premium plan but make the premium features invisible unless the user pays.
This shows them what they are missing because they aren’t upgrading their accounts.
Congratulations!
You have successfully convinced freemium users, and they are ready to upgrade. However, you still have one more hurdle to overcome.
Customers are more likely to drop off during the upgrading process if it’s too long, complicated, or there is too much information needed in the form.
According to Attrock, for most subscription management software solutions, users aren’t required to provide too much information to start using the solutions. Make it easy for users to upgrade to the premium version of your product.
You need to ask only for the necessary information until when they have access to the full features of the product. In fact, a good rule of thumb is to collect the information when they are opting for the freemium version of your product.
To convert freemium users into paying customers in B2B SaaS, you need to focus on providing a great user experience. Today’s B2B SaaS customers have a host of options to choose from.
You need to ensure freemium users discover the true potential of your product to make it easy to upgrade to the premium version.
Be the first to post comment!
