Popular in the subscription landscape, free trials give users a way to test drive a product or service before they buy it. Without the barrier of a long-term financial commitment, potential buyers are free to determine if the item or service is right for them.
As a business owner, your challenge lies in inspiring people to sign up for the trial. At that time, you will ask them to disclose payment details that will not be used unless and until they decide to convert the trial into a one-time or subscription purchase.
For subscription-based companies, netting payment details upfront is common. This can have advantages and disadvantages.
When you provide customers with a free trial, you are granting them full or limited access to your product and its features for a set period of time. Collecting the buyer’s payment details before the trial begins allows you to securely store the information. This makes it easy to charge the customer later if they choose to commit to a long-term purchase or payment plan.
For you as the merchant, gathering these details in the beginning increases the likelihood that the customer will ultimately pay. It also lightens the burden for consumers when the free trial period is at an end. However, divulging payment details in the beginning can lead to friction, particularly for people who choose not to continue with the relationship. Therefore, it is important to engage in some basic best practices when you set up subscription billing and free trial protocols.
Surprises are great for birthdays, but customers never want them when it comes to free trials or subscriptions. Instead of springing a shocking payment disclosure on them at the last minute, explain early that they will need to furnish a payment form.
This transparency should involve a clear explanation of why you need the details. Common reasons include preventing abuse of the free trial and ensuring an easy transition into the paid version should the customer decide to pursue it. Additionally, you need to be open and honest about your expectations. Clarify the duration of the trial, what will occur when it ends, and what they will pay if they fail to cancel by the predetermined date.
Finally, instructions for cancellation need to be explicitly stated. Let customers know how they can terminate the trial before the first billing date to avoid being charged. When you do this, the likelihood of chargebacks decreases as you build enhanced trust.
When customers feel good about everything involved in signing up for their free trial, friction is minimized. What’s more, they are likely to trust your company and may be inclined to convert to a paid version down the line.
To optimize their experience, start with a simple onboarding form. Only ask for essential details, and make it as fast and easy as possible to finish the process. Language should be straightforward and free of jargon.
Finally, bend over backwards to reassure users that they are doing business with a respected, credible company. Trust signals like security badges and testimonials from satisfied customers can be very effective. Additionally, post any money-back guarantees that are in effect for the product they are trying.
When people pay upfront, they have heightened expectations. Accentuate your product’s value with easy onboarding, a personalized experience, and frequent communication about the product during the trial period.
Providing payment details upfront requires an added commitment from potential customers, and you must also raise your standards to meet it. To that end, introduce them to the product quickly so that they can realize the value right away. Without delay, personalize their journey using the data you collect to tailor their experience. For example, emphasize features that will best meet their expressed needs.
Throughout the trial, remain in regular communication. Using personalized emails or in-app messages, frequently emphasize the value users are receiving. Be proactive about informing customers about the time left in their trial, encouraging them to fully explore all of the available features while they still can.
Consider offering alternatives for people who cannot or will not provide credit card details. Options include limited freemium plans and catering to different segments by creating various models.
There are many instances when potential customers are unable or unwilling to give payment details up front. Instead of cutting them out altogether, consider giving alternative options.
One idea is to offer different types of pricing models. For instance, you could provide a limited freemium plan that possesses fewer features but still gives people a way to sample the product before buying.
If you haven’t yet used free trials as a marketing tool, now might be the time to get started. They can introduce your product to a larger number of candidates, allowing you time to convince them of the merits of what you have to offer at minimal risk.