Thomas from Ariyh - 🎓 The optimal free trial length
🎓 The optimal free trial lengthIn a large-scale experiment, 7-day long free trials (vs 30 days) led to 5.6% higher conversions, 6.4% better retention, and 7.9% higher revenue.
New to Ariyh? This is a 3min practical summary of a scientific study 🎓 Join 13,920 evidence-based marketers that grow using science, not opinions 📈 Today’s insight is brought to you by… Storyblok Marc O’Polo built and launched their website’s content management system in 6 languages and 40 countries in just 14 days. How? By using Storyblok. It took one of their devs only 48 hours to learn it and build the prototype (on the free plan). And they finally managed to break free of the legacy software that was holding them back. Want to sponsor Ariyh? Book yours now, only 4 slots left until March 2022. 📝 IntroFree trials let people try a product for free for a limited time (e.g. “Try for free for 14 days”). They can then pay to stay, or leave. This acquisition strategy is especially popular for SaaS businesses, which charge a subscription for their software (e.g. Netflix video streaming, Shopify ecommerce software, Hootsuite social media management). It’s often an alternative to a freemium business model. But how long should free trials be? The vast majority of trials offered by companies range between 7 days and 90 days, with most concentrated in the 7 to 30 days bracket. Long trials give people more time to learn and use the product. They might make products stickier by making it harder to switch back. Short trials create an urgency effect and might reduce the number of people that free-ride without ever buying. A new study from the University of Washington gives us the answer. P.S.: Not a business that can offer free trials? Here is how you should use free samples instead. Previous insight: Metaphors make your ads more memorable (100+ more insights here) 7 day free trials increase sales and retentionChannels: Free trial | Subscriptions | Free samples 📈 RecommendationShorten your free trial to 7 days. People will be more likely to convert and stay in the long term. Personalized trial lengths (e.g. longer trials for experienced users, shorter trials for beginners) could boost your results further, but the increase is small and they are complex and risky to implement. 🎓 Findings
🧠 Why it works
🧭 Brought to you by AhrefsI’m proud to have Ahrefs sponsor Ariyh, by far my favorite company for SEO tools (and probably the best source of SEO tips and resources). If you want to track and improve your SEO, they have a great tool to do that - at no cost. I use it myself. You can try it out below. This announcement was sponsored. Want your brand here? Click here. Currently booked out 8 weeks in advance. ✋ Limitations
🏢 Companies using this
⚡ Steps to implement
🔍 Study typeField experiment (with a large anonymous SaaS company between 1st December 2015 and 6th January 2016) 📖 ResearchDesign and evaluation of optimal free trials. Management Science (August 2022). 🏫 Researchers
Remember: This is a new scientific discovery. In the future it will probably be better understood and could even be proven wrong (that’s how science works). It may also not be generalizable to your situation. If it’s a risky change, always test it on a small scale before rolling it out widely. Rate today’s insight to help me make Ariyh's next insights 🎓 even more useful 📈 How was today’s insight?
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Key phrases
Older messages
🎓 Metaphors make your ads more memorable
Tuesday, October 4, 2022
Metaphors make people process ads more deeply - and made them 24% more likely to remember ads one week later. Use metaphors related to your brand.
🎓 How to nudge freemium users to buy
Tuesday, September 27, 2022
Boost conversions to your paid product 16.2% to 22.6% by strategically introducing an alternative paid option.
🎓 Reverse how you frame your promotions
Tuesday, September 20, 2022
Describe the restriction first (spend £100) and then the offer (get $20 off). The promotion will feel like a reward rather than a restriction, and sell better.
🎓 Say “Gift” not “Donate” to increase donations
Tuesday, September 13, 2022
Asking people to “Gift” rather than “Donate” to charities increased the chances they did by up to 68.8% and increased the amount given by between 22.9% and 94%.
🎓 Handwritten thank you notes increase sales
Tuesday, September 6, 2022
Photocopies work just as well as originals. In experiments, they increased future customers spending 2x. They must be handwritten.
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