Free trials are fun and all, but you have to convert your free users into paid ones if you want your business to thrive. There are several strategies for doing so, including upselling and cross-selling. Here are eight proven strategies your business can use to convert your free users into paid ones.
A lot of free users don’t care about your business and the money. This is why it is often the best strategy to offer incentives to your users. You can do this through anything from badges to bonuses for those who pay for subscriptions. But the trick is that it has to be tangible, not just a vague sense of goodwill.
2. Get Creative
You can do a lot with creativity. One free marketing tool that can help your business is social media. If your free users are active on social media, you can often entice them to make an in-app purchase by offering a discount or special promotion. Of course, you can also use this strategy to advertise your business on sites like Facebook.
3. Minimize Transactions
If you have a large number of free users, then you’ll minimize your revenue because they are free to sign up. You can fix this by ensuring that your business complies with Panda and Penguin by having fewer active users per day or week. This way, you can ensure that you will convert your free users to paid ones.
4. Upsell and Cross-sell
If you have a paid version of a service or product, upselling is one of the easiest ways to convert your free users into paid ones. This is one of the most powerful tools to use. After all, why pay $10 for software that only costs $10?
The second most common reason for people to convert into paying users is through cross-selling. That means selling other products or services that go with your product, such as subscriptions to other products.
5. Offer Concierge Services
If you offer services that enable your users to create more value from the product you offer, then it makes sense for you to ask them to pay for it. For example, suppose you have a service that allows users to automatically send notifications to their friends about things happening on social media.
In that case, a lot of those people will likely want to pay for the service. And, this is a great opportunity for you.
6. Promote Your Business Online and Be Patient
If your business is not big at the minute, then it would make sense for you to promote your business on social media. By doing this, you can reach a lot of people who are interested in what you do. This is the time to push your paid version of the service or product because they will be easier to convert to paid users.
The business world is a long game. If you are willing to wait a little longer, you will see that your free users will convert into paid ones. Several case studies from corporations recommend that you wait it out instead of pushing new users all the time.
7. Limit the Number of Free Users but Do not Forget about the Existing Users
There is a limit to how many free users your business can handle. And the limit is 25%. So if you have more than 25% free users, you are probably losing money. Convert your free users by setting a limit on the number of free users allowed to sign up.
Existing users are your trump when it comes to converting free users to paid users for your business. This is why you have to work hard to keep them happy with your service or product. It is also important that you update their software because of many built-in issues that compromise your product or service.
8. Track Your Success
It is important to track your free users and conversions. That includes the number of sign-ups and how many of them convert into paid users. The more analytics that your business has, the better. Keep in mind that even if you have free users, they need to be paid for you to make money from them. So you need to see that they are converting.
Free users are the lifeblood of any business, but they are hard to convert. This is why you have to be smart about it. If you follow these proven strategies, you will see that you can make some money from free users.
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