Reverse trial for SaaS: Can it boost free-to-paid conversions?

Setting up trial versions for your SaaS product can feel very daunting. It’s easy to interpret this as giving away your solution. If we told you reverse trials involve offering a premium version of your SaaS product upfront, your gut reaction might be "no," immediately.

That’s just part of the story, though; it’s a means to an end. In this blog post, we’ll explore the concept of reverse trials for SaaS products. You’ll learn how this free trial model can actually help boost your revenue and retention. 

Here’s what we’ll cover: 

• A definition of a reverse trial in SaaS
• A comparison of reverse trials with other similar models
• How to implement a reverse trial
• Three examples of SaaS companies that have used reverse trials successfully 
• Tips to make certain that your reverse trial strategy yields the results you need

Let’s get started. 

What is a reverse trial?

In SaaS, the reverse trial model is a twist on the traditional free trial. Instead of getting a taste of the full product experience and then facing a hard stop, users have access to the full version upfront. 

They get to dive into all those premium features. They get to experience what makes your SaaS product truly shine. 

But there’s a catch…

After a set period (usually 14 or 30 days), users are gracefully downgraded to a freemium plan instead of losing access entirely. This means they still get to use your product with fewer bells and whistles.

Why is this such a clever move?

Simple. It's the best of both worlds:

• Aids in converting users into paying customers: The initial full access creates that "gotta have it" feeling, driving more users to upgrade to paid plans.
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• Keeps users engaged: Even those who don't immediately convert stick around. They keep using your product and potentially become paying customers down the road.
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• Builds habits faster: Trying out the full version lets users integrate your solution into their workflow. The consequence is they end up craving those features when the trial ends.
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• Boosts brand fondness from users: Even freemium users become advocates. In the best-case scenario, they spread the word about your product.

Comparing free trials vs. freemium vs. reverse trials

The question then becomes, “Why consider a reverse trial?” It’s fair to ask yourself this question, especially since other options exist. Let’s make it fair and compare them in this chart:

Steps to implementing a reverse trial for your SaaS product

Have you decided to implement a reverse trial model for your SaaS product? Here's your roadmap to success:

1. Define your premium features

Consider this your opportunity to curate a showcase of your product's flagship features. These premium functionalities will leave a lasting impression on users during the trial. 

Focus on identifying "sticky" features that drive repeat usage. They highlight the unique value proposition of your paid plans. Carefully consider the trial duration. Make sure it aligns with the complexity of your product and allows users ample time to experience the full benefits.

2. Set up the reverse trial process

Creating a frictionless transition from the trial period to the freemium plan is key. Start by mapping the entire user journey. Outline the steps involved in signing up, accessing premium features, and the post-trial experience.

Leveraging automation tools like Userpilot or Zapier can facilitate this process. The goal? Making the transition effortless for both you and your users.

3. Craft a robust communication strategy 

Develop a communication strategy that effectively highlights the value of your premium features. Be careful not to overwhelm potential customers. Begin with a welcoming email introducing users to the trial and guiding them to maximize their experience.

As the trial progresses, send subtle reminders showcasing the benefits of upgrading. When the trial concludes, communicate the downgrade to the freemium plan. You want to emphasize the ease of upgrading to regain access to premium features.

4. Measure and analyze performance

It’s vital to understand the effectiveness of your reverse trial. This requires careful tracking and analysis of key metrics: 

• Monitor the trial sign-up rate to gauge initial interest.
• Analyze feature adoption to identify the most popular premium features. 
• Track the free-to-paid conversion rate as the ultimate measure of success. 
• Monitor the churn rate to see if users find value even within the freemium plan. 

You can also use tools like Orb, which has usage-tracking capabilities. These will help improve your reverse trial strategy with accurate user data. The great thing about Orb is that it’s a billing platform. This means all that data can then be used for accurate customer billing. 

SaaS reverse trial examples

Ready to see the reverse trial model in action? Let's peek at a few SaaS companies who've mastered this approach and reaped the rewards:

Example 1: Toggl

Toggl, the time-tracking and project management tool, initially offered a freemium plan and a free trial. However, some users found a loophole. It involved using multiple email addresses to snag endless free trials.

Then, Toggl switched gears and embraced the reverse trial. Now, every new user gets a 30-day all-access pass to premium features. After the trial, they're gently transitioned to the free plan. This move curbed misuse and doubled Toggl's premium plan revenue. 

Example 2: Calendly

Calendly, the popular scheduling app, offers a 14-day free trial that showcases all the bells and whistles.

When the trial ends, accounts are automatically downgraded. This allows Calendly to hook users with the full experience while hoping they'll have seen the value of the product and happily upgrade.

Example 3: Canva

Canva, the design tool, takes a bold approach with its reverse trial. For a generous 30 days, new users are welcomed with open arms to the full Canva Pro experience.

After the trial, it's back to the basics… unless, of course, users decide to subscribe. This strategy allows Canva to showcase its premium features to a broad audience. The goal? To spark a penchant for design that leads to paid conversions.

These examples prove that the reverse trial isn't just a theoretical concept. It's a practical strategy that can yield impressive results.

Tips for success when using reverse trials in SaaS

Reverse trials hold immense potential for boosting conversions. But, like any strategy, their success hinges on careful execution. Here are some tips to make sure your reverse trial implementation goes well:

A list of best practices for a successful reverse trial strategy 

• Curate your premium showcase: Choose the premium features that will captivate users during the trial. These should be your product's most valuable and differentiating assets.
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• Set the right tempo: Determine a trial duration that aligns with your product's complexity. It should give users enough time to experience the full value of your premium features. While 14 or 30 days are standard, adapt this timeline to suit your specific offering.
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• Frictionless transition: Guarantee a smooth shift from the full-featured trial to freemium. Use automated messaging, in-app notifications, and dedicated support to guide users.
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• Communicate with clarity: Articulate the value of your premium features during the trial period. Use email, in-app messaging, and other channels to effectively convey the benefits of upgrading.
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• Track your trajectory: Monitor key metrics such as trial sign-up, feature adoption, and conversion rates. The goal is to assess the success of your reverse trial. Use these insights to refine your strategy as needed.

Common pitfalls you should avoid during implementation

• Lackluster freemium: The freemium plan should offer genuine value. It should entice users to continue engaging with your product even after the trial ends.
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• Rocky transitions: Avoid abrupt or confusing transitions from the trial to the freemium plan. Make it as seamless as possible for users to continue their product journey.
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• Communication breakdown: Ensure users fully understand the value proposition of your premium features. It should also be clear how upgrading can enhance their experience.
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• Data blind spots: Neglecting to track key metrics can leave you in the dark about the effectiveness of your reverse trial. Use analytics tools to gain valuable insights and optimize your strategy.

Tips for tailoring reverse trials to your SaaS product

• Complexity considerations: Adjust the trial duration based on your product's complexity. More intricate products may warrant a longer trial period for users to fully grasp their value.
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• Know your audience: Tailor your reverse trial to your target audience's specific needs and pain points. Highlight how your premium features address their challenges and enhance their workflows.
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• Embrace experimentation: Don't be afraid to experiment with different approaches to reverse trials. Test various trial lengths, feature combinations, and communication strategies. You want to find the perfect fit for your product and audience.

Next steps

A successful reverse trial strategy requires more than just offering premium features for a limited time. It demands a robust technological foundation to manage the transition with minimal friction. 

Enter Orb, a billing management platform tailor-made for SaaS companies. Especially those aiming to grow through strategic pricing and monetization. 

Orb simplifies the intricacies of reverse trial management. It lets you fine-tune your offering, monitor usage, and convert trial users into paying customers. Plus, you can do all this without writing a single line of billing code.

How Orb empowers your reverse trial strategy:

• Effortless setup and customization: Orb's platform allows you to configure your reverse trial with ease. Define trial durations, feature limitations for the freemium plan, and customize the upgrade path. 
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• Insightful usage tracking: Gain deep insights into how trial users engage with your premium features. Orb's detailed usage reports provide invaluable data to refine your product and pricing strategy. It lets you turn user behavior into actionable data.
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• Transparent billing and pricing: When the trial ends, and users switch to the freemium plan, Orb guarantees smooth billing. Precise and accurate invoicing eliminates any surprises and fosters trust with your customers.
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• Seamless price changes: As your product evolves, so might your pricing. Orb's plan versioning capabilities allow you to easily manage and schedule price changes. You’re essentially establishing a smooth transition for your existing customers.

Learn how Orb can make reverse trial implementation for your SaaS product a breeze.