Reverse Trial Method: How to Increase SaaS Conversions (+ Examples)

Wondering if the reverse trial method can help you improve conversions?

While the exact figure can vary, most studies show that 75% of B2B customers don’t convert after a standard free trial.

The main issues? Limited time and features, sticker shock, and the lack of ongoing engagement.

A reverse trial flips the traditional free trial model on its head. By starting users with full access to your product and then transitioning them to a limited free version, you can create a more engaging and effective user journey that drives conversions and encourages long-term customer relationships.

How? Read on to find out.

What’s a reverse trial?

A reverse trial is a pricing model that lets users experience the full version of a product for a limited time. They’re automatically downgraded to a freemium version if they don’t upgrade.

This approach essentially combines a free trial and freemium plan in one to help users make more informed buying decisions.

What is a reverse trial in SaaS?

SaaS companies use reverse trials to help users have a taste of the added capabilities that come with premium plans. It’s a great way to advertise your product while still retaining the customer if they choose not to upgrade immediately.

But how effective are reverse trials compared to other pricing models? Research by OpenView reveals some interesting insights. While traditional free trials convert at a rate of 8-25%, reverse trials achieve a higher average conversion rate (7-21%) than freemium models (3-15%). This strong performance is due to a combination of factors, including increased user engagement, a more gradual transition to a paid plan, and the opportunity for users to fully experience the product’s value before making a commitment.

An example of a SaaS reverse trial? Calendly. The scheduling app offers new users 14 days of free access to its premium plan with no credit card required. If they fail to pay within the 14-day window, they’re automatically downgraded to the free version.

With this approach, the company gets to convert more users compared to a pricing model that just locks users out if they choose not to subscribe to premium.

Free trial model vs. freemium model vs. reverse trial model

So what’s the difference between free trial, freemium, and reverse trial?

• Free trials allow users access to all features for a limited time and cut them off if they don’t subscribe to the paid version. Free trial models tend to have higher initial conversion rates because they use techniques like credit card gating to ensure only high-intent prospects take the trials.
• Freemium models, like Slack, offer limited features that are free forever. It’s like saying, “Start now, upgrade as you go.”
• Reverse trials, as mentioned above, let users experience the full product before downgrading them to a limited free version if they don’t subscribe.

The image below illustrates the user journey for each model:

Notice two things from the illustration:

• Free trials cut users off completely, losing the opportunity to nurture them for future conversions.
• Even when a freemium model offers premium trials, not all users will opt-in, compared with a reverse trial that starts all new users with the full experience.

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Benefits of the SaaS reverse trial method

Here are some key advantages of the reverse trial approach:

1. Better user retention

Imagine this: a user tries your product and loves it but isn’t quite ready to commit to a paid plan when the trial ends. With a traditional trial, they hit a wall: it’s either subscribe or lose all access. This abrupt cutoff can create frustration and lead to churn.

Reverse trials offer a “soft landing” instead. Transitioning users to a freemium model ensures they retain access to core features and continue engaging with your product. This ongoing interaction encourages familiarity and habit formation, increasing the likelihood of paid conversions.

2. Improve user engagement

A reverse trial model ensures users get immediate access to all features. This allows them to fully explore the product’s potential and experience its true value from the start.

They can explore advanced features, experiment with different use cases, and even start achieving some business goals—all without feeling rushed by a looming trial expiration date.

This contrasts with the typical 14-day free trial, where users often feel pressured to cram exploration and evaluation into a short timeframe.

The freedom to explore creates a deeper understanding of the product and its capabilities, leading to long-term engagement and a stronger connection with the product.

3. Increase conversion opportunities

Reverse trials cleverly leverage the psychology of loss aversion. When users experience the full value of your product, they become accustomed to the benefits and convenience it offers. Then, when the trial ends, and some features are removed, they feel a sense of loss that motivates them to upgrade and regain the full experience they’ve come to appreciate.

Furthermore, reverse trials allow users to experience the complete value proposition upfront, something that freemium users don’t get. This firsthand experience creates a stronger desire for the full product and leads to higher conversion rates.

Let Elena Verna convince you. She’s a partner at 20VC and has worked with several PLG companies. Elena is currently the VP of Growth at DropBox, and in her experience, the reverse trial strategy increases conversion from freemium to premium by 10 – 40%.

Dropbox itself is successfully A/B testing this model, allowing users to enjoy the full power of its collaboration and storage features before transitioning to a free plan with limited space.

4 successful reverse trial examples

Ready to see how top SaaS companies are achieving remarkable results with reverse trials? Let’s dive into four successful examples and uncover their key takeaways.

1. Canva

Canva allows new users to try any of its premium plans free for 30 days. This grants users access to its advanced design tools, a vast library of stock photos and videos, and other capabilities.

After the 30-day trial period, users lose access to all premium features. However, instead of being locked out of the platform, they are downgraded to the basic version with limited features. This creates a sense of loss aversion that motivates users to upgrade from free to paid.

2. Toggl

Toggl Track initially faced challenges with users creating multiple accounts to exploit its free trial period. This led the company to adopt a reverse trial strategy, which has proven to be a winning solution.

Now, new users get full access to Toggl Track’s premium time tracking features for 30 days. After the trial period, they transition to a free plan with more limited functionality.

This approach effectively addresses the misuse of free trials while still encouraging ongoing engagement. It allows Toggl Track to retain users who may need more time to evaluate the full value of the paid features, ultimately increasing the likelihood of conversions down the line.

3. Airtable

Airtable automatically upgrades new users to the pro plan for 14 days.

The company’s strategy goes beyond simply offering a free trial. While the free plan is more limited, it still provides valuable functionality.

This creates a soft landing for users who aren’t ready to commit to a paid plan after the free trial ends. They can continue using Airtable for their basic needs, keeping the platform integrated into their workflow and increasing the likelihood of future upgrades.

4. Grammarly

Grammarly’s example demonstrates that you don’t have to stick with the usual 14 or 30 days if your product has a simple learning curve.

The company allows new users to explore its advanced features for 7 days, after which they’re automatically downgraded to the free version.

The writing assistant integrates with many tools in its target audience’s workflows. So, after experiencing this level of efficiency and forming a habit around the product, the downgraded users will feel a sense of loss aversion and want to upgrade to pro.

Implementing a reverse trial: Converting trial users into paying customers

Follow these steps to successfully implement a reverse trial for your product:

1. Identify premium “sticky” features

Not all features are created equal. To maximize the impact of your reverse trial, pinpoint the paid features that are most likely to create a “sticky” experience for users.

These are the features that offer substantial benefits that users will quickly appreciate and rely on. For example, one of Grammarly’s sticky features is its integration with various platforms, such as email clients, social media scheduling tools, and document editors.

Imagine a user crafting an important email. Grammarly’s suggestions will not only correct grammar and spelling errors but also offer insights on tone and clarity, ensuring the email makes a professional impact.

When the trial ends, and the user loses access to these seamless integrations and advanced suggestions, they feel a tangible loss of efficiency and writing confidence, motivating them to upgrade.

How to identify your sticky features? Use a product analytics tool like Userpilot to track a funnel of main key features in any specific order and look at the average completion time. The features that power users engage with the most are your winners.

2. Set a free trial duration

The industry standard is 14 days, but as we saw from the examples above, this isn’t set in stone—it can vary based on factors like product complexity, when users progress to an “Aha” moment, and the typical user journey.

The best way to reach a conclusion is to A/B test different durations and see which delivers the highest conversion rates. Userpilot can help.

3. Create an exceptional onboarding experience

A smooth and engaging onboarding experience helps you maximize trial engagement and feature adoption. According to Wyzowl’s 2020 research, 88% of people say they’ll be more likely to stick around if a company provides clear onboarding processes.

So, how do you deliver an engaging onboarding experience?

• Personalize your flows from the get-go.
• Set clear expectations and milestones (this gives users a roadmap and a sense of accomplishment as they progress).
• Use gamified in-app guidance. For example, in the screenshot below, Userpilot uses a progress bar in combination with an onboarding checklist to keep users engaged.

4. Be clear and transparent in your communication

It’s important that users clearly understand the trial’s terms and what to expect when it ends and they transition to the freemium model. This builds user trust and avoids any surprises or feelings of deception.

To ensure this clarity, explicitly state the trial duration, such as “14-day free trial of Premium.” Also, highlight the features included in the trial, specifying the premium features users will have access to.

Don’t forget to use non-intrusive in-app notifications to remind users about the trial’s end and provide clear calls to action to upgrade. Here’s an example from Userpilot:

5. Encourage upgrades through personalized offers

Don’t just wait for users to upgrade on their own. Proactively encourage conversions with personalized offers tailored to their needs and activity patterns. For instance, you can offer usage-based discounts based on how extensively users engaged with premium features during the trial.

For users who show high engagement but haven’t upgraded, consider offering extended free trial periods to give them more time to evaluate the product value.

Userpilot allows you to automate this process, triggering personalized messages and offers based on specific user actions or milestones:

6. Gather customer feedback to refine your strategy

Reverse trials are an iterative process. Continuously gather feedback from your users to understand their experiences and identify areas for improvement. For example, you might discover that users struggle to find a specific feature during the trial. This feedback can help you refine your onboarding process, adjust your messaging, or even reconsider which features are included in the trial.

To effectively gather these insights, it’s essential to have the right tools in place. A platform like Userpilot can be invaluable in this process. Userpilot allows you to set automatic survey triggers based on user activity, such as trial completion or hitting key usage milestones. This ensures that you’re collecting feedback at the most relevant moments in the user journey.

Reverse Trial FAQs

When do reverse trials NOT work?

While reverse trials can be a powerful strategy, they’re not a universal solution. Here are some scenarios where they might not be the best fit:

• Products with a steep learning curve: When users need significant time and effort to master a product, a reverse trial may not provide sufficient time to reach the “aha” moment and experience the full value of the premium features. They might feel overwhelmed or frustrated, leading to lower engagement and conversion rates.
• Low average product usage: Reverse trials may not be effective for products used infrequently or for specific, occasional tasks. Users might not engage with the product enough during the free trial period to form a habit or fully appreciate the benefits of the premium features.
• Significant differences between free and premium offerings: The transition from a fully-featured trial to a limited free version can be jarring and confusing for users if the difference between the two is substantial. This can lead to a poor customer experience and discourage upgrades.
• High cost of service: For products requiring extensive onboarding, support, or customization, a reverse trial can be costly. The upfront investment in providing full access to premium features might not be offset by the conversion rate, especially if your customer acquisition cost is high.
• Products reliant on network effects: When a product’s value heavily depends on network effects (i.e., it becomes more valuable as more people use it), a freemium model with a wider user base might be more beneficial than a reverse trial.

What’s the ideal length of a SaaS free trial?

The “ideal” length of a SaaS free trial is a topic of much debate, but a 14-day free trial is often considered the industry standard. However, this can vary significantly depending on factors like product complexity and subscription costs.

What’s a good SaaS reverse trial conversion rate?

Conversion rates can vary from industry to industry. The target audience also plays a key role, so it’s best to just aim to consistently beat your past numbers.

However, here are some benchmarks to consider:

• New products: For new products or companies just testing reverse trials, a conversion rate of 7-11% or higher is a good starting point.
• Industry average: Openview’s data suggests that the average conversion rate for reverse trials across various SaaS industries is around 14-21%.

Conclusion

While not a one-size-fits-all solution, reverse trials offer a compelling approach for many SaaS businesses. It especially works for those with products that have a clear value proposition and can benefit from demonstrating their full capabilities from the start.

Want to give it a try? Book a demo to see how Userpilot can empower you to identify your most used features, deploy a solid reverse trial strategy, and optimize your onboarding flow to guide users toward those “aha” moments.

Implement the Reverse Trial Method and Boost Conversions for Your SaaS

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• No Credit Card Required