Docs Revenue metrics Trial conversion rate

Trial Conversion Rate

Trial Conversion Rate gives you insight into how many new customers are moving from a trial period to becoming paying subscribers. This metric helps you understand the effectiveness of your trial offerings and customer onboarding process.

What is Trial Conversion Rate?

Trial Conversion Rate measures the percentage of new customers who convert from a trial period to a paid subscription. It’s calculated by dividing the number of trial users who become paying customers by the total number of trial users, then multiplying by 100. Here’s the formula:

Trial Conversion Rate = Number of Trial Conversions / Total Number of Trials * 100

Key Components

  • Converted: The total value of subscriptions that have converted from trial to paid. This indicates the monetary value of trial users who found enough value in your product to continue with a paid subscription.
  • Canceled: The total value of subscriptions that have canceled their trial before the end of the trial period. This helps you understand the monetary impact of users who did not find enough value to continue after the trial period.
  • Conversion rate: The percentage of new customers that have converted from trial to paid. This is the key metric to gauge the effectiveness of your trial period.

Why is Trial Conversion Rate important?

Trial Conversion Rate is important because it shows how effectively your trial period converts potential customers into paying users. Here’s why this metric matters:

  • Customer acquisition Insight: Understanding your conversion rate helps you evaluate how well your trial period attracts and retains new customers.
  • Product value Confirmation: A high conversion rate indicates that users see significant value in your product during the trial period.
  • Revenue growth: Improving your trial conversion rate can directly impact your revenue by increasing the number of paying customers.
  • Customer feedback: Analyzing cancellations during the trial period can provide valuable feedback for improving your product or onboarding process.

Actions you can take with Trial Conversion Rate insights

  • Enhance trial experience: Use feedback from trial users to improve the trial experience, ensuring that it clearly demonstrates the value of your product.
  • Optimize onboarding: Ensure that your onboarding process is smooth and helps users quickly understand how to use your product effectively.
  • Engage with trial users: Regularly engage with trial users through emails, tutorials, or support to help them make the most of the trial period.
  • Monitor and adjust: Regularly monitor your trial conversion rate and make necessary adjustments to your trial offerings and marketing strategies.

By understanding and regularly monitoring your Trial Conversion Rate, you can gain valuable insights into how effectively your trials convert to paying customers. This metric helps you make informed decisions that drive growth, improve customer acquisition, and ensure long-term success for your business.