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why free users won't upgrade in sass apps (and it's a game-changer!)
Here's a valuable insight I uncovered while exploring a Sass app that was hindering its business from converting free users into paying clients:
The app offered something remarkable but not essential.
While they allowed free usage, they restricted video exports in their caption video app. If you needed to export, you hit a roadblock. And just like that, users left the app!
A free trial isn't always sufficient; users need to experience how the tool streamlines content creation, and exporting and sharing are integral to that experience.
Should they offer free exports? Perhaps not outright.
But they could consider adding a watermark or a similar feature.
This not only provides users with a taste of the tool's capabilities but also generates exposure for the solution, potentially enticing other users to become paying customers.
What do you think? What other strategies you think could work?
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@samuel_dev strategy can be tricky but it's about exploring how users are behaving.
Another thing I was thinking about regarding your idea is to always ensure that your free users are getting educated about your solution. Offer them results, but build up your premium pack so that users, when they're ready to upgrade, trust your interface enough to do so.
I think the worst thing a tool trying to make its way in the SaaS market with so many options can do is to close doors to users who aren't willing to pay. But it's definitely about finding a balance between running a business in the short and long term, of course
Builders need to start the other way. Build for the core users who are ready and wiling to pay first, and offer the free version to 'peripheral' categories of users who might need the product or might be good for word-of-mouth.
@zaryat love this! ha! Yes, but once again, free users need to be nurtured to become premium users. You need to build that bond with them
You sure are right that it's very important to give free users enough value. For the paid plans, I'd condiser the following:
* multiple tires, so that it's fair for casual users, while you get a fair revenue from power users
* lower prices in low-income countries
* both yearly and monthly billing cycles, auto-renewal optional, possibly lifetime option
Tbh I would probably consider looking into moset frequently used features, let users experience these for some time as a Premium subscription and after 1 month limit access in free version. I would use that month to retain as much value as possible to drive user motivation for paid access. That's one strategy.
I just recently deconstructed engagement strategy of Duolingo which has a free model with optional subscription. It's so good, it has over 7% of users actually subsrcibing on their own. Things can be done ;)