If a user doesn’t convert at the end of a trial, do you follow up with an offer (like a discount or extended trial) to try to win them, or do you just let them churn and focus on new leads?

Based on the discussion in our SaaS pricing book, Price to Scale, our approach is to proactively follow up with targeted, tailored offers rather than simply letting users churn. Here are the key points:

• Tailored Follow-Up Offers:
Instead of treating all churn identically, we use metrics (like the churn propensity score discussed in Chapter 11) to identify segments of users who may still be a good fit. For these users, we consider strategic offers such as discounts or extended trials.

• Segmentation Is Key:
As highlighted on page 245 and 287, the idea is to segment your customer base. Not every non-converter needs the same treatment; by understanding their behavior and usage during the trial, you can craft offers that specifically address their needs. For instance, offering a modest discount (ranging from 10% to 30% as our book outlines) can work if paired with a commitment to longer contracts or further engagement.

• Strategic Communication:
It's not just about making an offer. Effective communication ensures the customer understands the added value. This could involve presenting the offer as a gesture of appreciation while also demonstrating continued value and potential improvements in the product or service, as mentioned in the communication strategy updates in our book.

In summary, our pricing strategy recommends not giving up on every non-converter but rather leveraging data-driven segmentation to selectively offer incentives. This balanced approach helps to recapture valuable users without compromising the overall pricing integrity.

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