Are Free Trials Worth it?
August 23, 2014
Mindflash is a cloud-based learning platform for employee and customer training and one of Infer’s most successful customers. We recently released a Mindflash Case Study that explores how companies can further take advantage of predictive scoring. Download it here.
Like many SaaS companies, Mindflash’s business partially relies on free trials. Free trials – the double-edged sword of the SaaS community – serve as a boon for some but a bane for seemingly just as many. There have been a number of articles on the topic – from Forbes suggesting a free trial is a great marketing tool and a solid step toward establishing good will with new customers to FastCompany’s writeup on Evernote which included Lincoln Murphy‘s quote that “…for most startups, freemium is a cop-out.”
My take: For SaaS companies, free trials are increasingly becoming table-stakes – your customers simply expect them. So the question becomes –
“How can I ensure that I’m working the right leads from my Free Trial channel?”
Just as one would be hard-pressed to find a SaaS CFO that does not focus on MRR growth and churn, it would be similarly difficult to find a company that offers a free trial that feels they fully understand the benefits of their free trial.
Mindflash, in particular, found that their free trial program was stressing their lean sales team and often on the wrong prospects.
For management, trial usage took months to measure and was actually later found to be a misleading indicator for conversion!
Mindflash turned to Infer’s predictive lead scoring and, in just two weeks, they began to benefit – quickly leading to a FIFTY percent increase in Monthly Recurring Revenue (MRR). At Infer, we pride ourselves on not just providing data but also providing actionable data.
For Mindflash, some of the immediate benefits of acting on Infer’s data included:
- Faster Contact: By filtering down their focus to only A-Leads, Mindflash reps make contact with the best new trial customers faster and get a jump on the competition.
- Better Perseverance: Even if a customer isn’t ready to try or buy the product right away, sales reps know which leads are worth cultivating over time.
- Fewer Missed Opportunities: Mindflash’s marketing team can pinpoint hot prospects even if they never start a free trial (i.e. from events or white paper downloads).
To learn more about how Infer enabled Mindflash to grow its MRR 50% and cut through the noise around free trials – check out our recent case study on Mindflash.
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