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Frameworks, core principles and top case studies for SaaS pricing, learnt and refined over 28+ years of SaaS-monetization experience.
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Based on the principles outlined in our pricing strategy book, Price to Scale, the decision to end a free trial early versus letting it run its full period should be driven by how well you understand and measure user engagement against the core value your product delivers. Here are some key considerations:
• Directly tie trial duration to user activity. If your product’s value is realized through active usage and there are clear milestones that indicate success (or potential success), then a usage-based trial makes sense. This approach lets you measure whether a user has truly experienced that critical value during the trial.
• If a user isn’t active, ending their trial early can help you avoid “wasting” a trial period on disengaged users. However, it’s important to balance this with the risk that some users may need more time or guidance to reach key milestones. An early termination might also be used as a signal for your customer success team to intervene and assist in engagement.
• On the other hand, a fixed-period trial ensures every user gets a uniform chance to explore the product—but it may delay the identification of non-engagement. In our book, we emphasize that regardless of the method chosen, it’s essential that your trial model (whether fixed or milestone-triggered) aligns closely with the outcomes that define value for your customers.
In summary, our book recommends that you:
- Clearly define the key usage or activity milestones that correlate with real value.
- Decide whether the trial period should pivot on less active users (ending it early to better target engagement efforts) or if a full-length trial works best for your product.
- Consider piloting a usage-based trial and tracking the conversion rates and customer feedback before fully committing to that model.
Ultimately, aligning your free trial approach with the core value metrics of your offering is crucial to both maximizing conversion and ensuring that early disengagement is addressed appropriately.