SaaS companies today are constantly competing for consumer attention, and free trials have proven to be the best method of attracting leads by providing them with a test of the services provided.
Trial Conversion Rate = Free to Paid Converted Users/ Total Number of Users
On average, the industry’s free trial conversion rate is 9.2%. However, this conversion rate varies from industry to industry, depending on the trial duration, size of the company, and type of trial provided.
Let’s explore in detail the average free trial conversion rates, trial conversion rates by industry, duration, customer size, and conversion rate benchmarks.
Key Highlights
- The average free trial conversion rate is recorded to be 9.2%
- Opt-in free trials, where users do not have to provide card details, have a 17.8% of the trial-to-paid conversion rate.
- Trial-to-paid conversion rate for the Opt-out free trial is 49.9%
- The RegTech industry has the highest trial-to-paid conversion rate of 5.8%.
- The Education/EdTech has the lowest trial-to-paid conversion rate of 2.8%.
Average Free Trial Conversion rate
The average free trial conversion rate is recorded to be 9.2%
The free trial conversion rate stands for the number of customers who opt for a paid product from the free version.
This conversion rate varies from industry to industry as well as for different types of trials.
Source: Klipfolio.
On average, 8% to 12% is a good conversion rate for a free trial, while 15% to 25% is a great conversion rate.
Comparatively, 7% to 11% is a good conversion rate for reverse trial, while 14% to 21% is a great conversion rate.
The following table displays the good and great free-to-paid conversion rates:
| Free to Paid Type | Good Conversion Rates | Great Conversion Rates |
|---|---|---|
| Free trial | 8% to 12% | 15% to 25% |
| Reverse trial | 7% to 11% | 14% to 21% |
| Freemium-self serve | 3% to 5% | 6% to 8% |
| Freemium-self assist | 5% to 7% | 10% to 15% |
Source: Lenny’s Newsletter.
Types Of Free Trials
Brands and businesses provide different types of free trials. Each free trial has unique offerings and limitations.
Let’s take a look at them separately:
- Unlimited free trial: The unlimited free trial offers access to all the services and products for free. However, this trial usually lasts for a week or two.
- Limited free trial: This trial offers users access to one or two products or the lowest available plan.
- Opt-In free trial: In the opt-in free trial, the users do not have to enter their credit card number to access the free trial.
- Opt-out free trial: Opt-out credit card requires credit card details before accessing the free trial. Hence, by the end of the free trial, users are automatically charged for the products they have selected for the free trial.
- B2C Free Trials: B2C free trials usually have longer trial periods, which may last up to 30 days on average.
- B2B free trials: These usually last two weeks on average and have a higher conversion rate.
Free Trial Conversion Rates By Industry
Visitor-to-trial conversion rate is 15.5% in the IoT industry.
The average visitor-to-trial conversion rate in the IoT industry is the highest compared to other industries. As a result, the industry also has the highest benchmark.
Conversely, the enterprise industry has the lowest visitor-to-trial conversion rate of 11.8%.
On the other hand, the RegTech industry has the highest trial-to-paid conversion rate of 5.8%, while the Education/EdTech industry has the lowest.
The following table displays the visitor-to-trial and trial-to-paid conversion rates among different industries.
| Industry | Visitor to Trial Conversion rate | Trial to Paid Conversion Rate |
|---|---|---|
| IoT | 15.5% | 4.1% |
| Healthcare/MedTech | 15.3% | 4.0% |
| ERP | 14% | 4.8% |
| RegTech | 14.2% | 5.8% |
| Advertising/AdTech | 13.9% | 3.6% |
| Education/EdTech | 13.9% | 2.6% |
| Legal/LegalTech | 13.8% | 5.7% |
| Financial/Fintech | 13.5% | 3.7% |
| HR | 13.1% | 3.6% |
| CRM | 12.8% | 3.4% |
| Real Estate/PropTech | 12.2% | 3.4% |
| Communications | 12.1% | 3.5% |
| Agriculture/AgTech | 11.9% | 4.5% |
| Cybersecurity | 11.9% | 3.3% |
| Enterprise | 11.8% | 3.4% |
Source: FirstPageSage
SaaS Free Trial Conversion Rates
This section includes details about the conversation rates recorded for the visitor-to-trial conversions and trial-to-paid conversions according to the freemium model in the SaaS industry.
Visitor To Freemium Conversion Rates
Opt-in free trials, where users do not have to provide their card details, have a visitor-to-trial conversion rate of 7.8%.
On the other hand, the Opt-out free trials, where users have to provide their card details, have a visitors-to-trial conversion rate of 2.4%.
The following table displays the visitor-to-trial conversion rates for different types of freemium models.
| Freemium Model | Visitor to Freemium Conversion Rates |
|---|---|
| Traditional Freemium | 13.7% |
| Land & Expand | 14.5% |
| Freeware 2.0 | 13.2% |
| Opt-In Free Trials | 7.8% |
| Opt-Out Free Trials | 2.4% |
Source: FirstPageSage
Freemium To Paid Conversion Rates
Opt-in free trials have a 17.8% of the trial-to-paid conversion rate.
Meanwhile, the trial-to-paid conversion rate for the SaaS industry for the Opt-out free trial is 49.9%. It is twice as compared to that of the Opt-In Free Trials.
Here is a table providing details about the trial-to-paid conversion rate for the SaaS industry by the freemium model.
| Freemium Model | Trial to Paid Conversion Rate |
|---|---|
| Traditional Freemium | 3.7% |
| Land & Expand | 3.0% |
| Freeware 2.0 | 3.3% |
| Opt-In Free Trials | 17.8% |
| Opt-Out Free Trials | 49.9% |
Source: FirstPageSage
Conversion Rate By Customer Size
Very small businesses usually have the highest free trial conversions, with a median conversion rate of 12%.
On the other hand, the mid-market businesses have a median free trial conversion rate of just 8%, and the small businesses have a median free trial conversion rate of 10%.
The following table displays the free-trial conversion rates of the businesses by customer size.
| Business Size | Bottom Quartile | Median | Top Quartile |
|---|---|---|---|
| Very Small Business | 5% | 12% | 25% |
| Small Business | 4% | 10% | 20% |
| Midmarket business | 4% | 8% | 18% |
Source: Lennys Newsletter
Trial Conversion Rate By Duration
The top 25% of the apps with a trial duration between 17 and 32 days have the highest trial conversion rate of 67%.
Conversely, the bottom 25% of the apps with a trial period of 17 to 32 days have an average trial conversion rate of 21%.
The median conversion rate of the apps with longer trial periods is almost the same, around 45%.
On the other hand, the median trial conversion rate of the apps with a trial period of less than 4 days is 30%.
The following table displays the trial conversion rates by trial duration.
| Trial Duration | Bottom 25% of Apps | Median Trial Conversion Rate | Top 25% of Apps |
|---|---|---|---|
| Less than 4 days | 47% | 30% | 19% |
| 5 to 9 days | 62% | 45% | 28% |
| 10 to 16 days | 61% | 44% | 21% |
| 17 to 32 days | 67% | 45% | 21% |
Source: RevenueCat.
Free Trial Conversion Rate Benchmarks By Industry
The IoT industry has the highest visitor-to-trial conversion rate benchmark of 12.6%.
At the same time, the CRM industry has the highest trial-to-paid conversion rate of 29.0%.
Conversely, the visitor-to-trial conversion rate and the trial-to-paid conversion rate benchmarks are recorded to be the lowest for the enterprise industry.
The following table displays the benchmarks for visitor-to-trial conversion rate and trial-to-paid conversion rate.
| Industry | Visitor to Trial Conversion Rate | Trial to Paid Conversion Rate |
|---|---|---|
| Advertising / AdTech | 9.1% | 24.3% |
| Agriculture / Agtech | 8.8% | 21.5% |
| Communications | 8.3% | 23.4% |
| CRM | 9.7% | 29.0% |
| Cybersecurity | 7.4% | 21.9% |
| Education / Edtech | 10.3% | 24.8% |
| Enterprise | 5.5% | 18.6% |
| ERP | 9.4% | 23.7% |
| Environmental / CleanTech | 11.1% | 22.9% |
| Financial / Fintech | 9.0% | 19.4% |
| Healthcare / Medtech | 12.3% | 21.5% |
| HR | 8.1% | 22.7% |
| IoT | 12.6% | 25.2% |
| Legal / Legaltech | 9.7% | 23.1% |
| Real Estate / Proptech | 7.1% | 22.7% |
| Regtech | 11.7% | 23.6% |
Source: FirstPageSage
Free Trial Conversion Rate Benchmarks By Trial Type
The organic conversion rate benchmark for the visitor to the free trial conversion rate is 8.5% for the opt-in ones.
Meanwhile, the organic conversion rate benchmark for the trial to paid-for opt-in ones is 18.2%, and for the opt-out ones, it is recorded to be 48.8%.
On the other hand, the paid conversion rate benchmark for free trial to paid consumers is 51%.
The following table displays the organic conversion and paid conversion rates by the trial type.
| Trial Type | Organic Conversion Rate | Paid Conversion Rates |
|---|---|---|
| Visitor to Free Trial (Opt-In) | 8.5% | 7.1% |
| Free Trial (Opt-In) to Paid | 18.2% | 17.4% |
| Visitor to Free Trial (Opt-Out) | 2.5% | 2.2% |
| Free Trial (Opt-Out) to Paid | 48.8% | 51% |
| Visitor to Freemium | 13.3% | 15.9% |
| Freemium to Paid | 2.6% | 2.8% |
Source: FirstPageSage
How Free Trial Conversion Rate Is Calculated
The free trial conversion rate measures the percentage of free users that convert to paid users over the predefined period in the SaaS industry.
Trial Conversion Rate = Free to Paid Converted Users/ Total Number of Users
Conclusion: 8% To 12% Is A Good Conversion Rate For Free Trial
Meanwhile, the average conversion rate is 9.2%, and a great trial conversion rate is between 15% and 25%.
The trials that last 5 to 9 days and 17 to 32 days have a median trial conversion rate of 45%.
On the other hand, very small businesses have a higher trial conversion rate than small and mid-sized businesses.
Overall, the trial conversion rate varies according to factors like trial duration, company size, type of trial, industry, and more.