For those who do offer a free trial, do more people end up converting if you require a credit card (ensuring they’re serious) or if you don’t require one (lowering friction)?

Based on the insights provided in Price to Scale, requiring a credit card (or even a nominal charge) during a free trial can lead to higher conversion rates. Here’s why:

• It signals commitment – By asking for a credit card upfront, you effectively filter out users who aren’t serious about engaging with your product. The ones who are willing to provide their information are more likely to be genuinely interested.

• It improves conversion quality – Although a no-credit-card approach may attract a larger pool initially, the conversion rate from those free sign-ups is historically low (often around 2–6%). With a small financial commitment, companies like Aftership have found that the conversion rate tends to improve because the trial users are more qualified.

• It reduces resource strain – Free trials without accountability may require significant resources to support users who are unlikely to convert. Requiring credit card details helps ensure that the engagement you’re building is with potential long-term customers.

In summary, as illustrated in our SaaS pricing strategy book Price to Scale, while lowering friction by not requiring a credit card might boost sign-up numbers, the quality and subsequent conversion rate of those sign-ups generally see a better outcome when you ensure that only serious users enter the trial phase.