Sales and marketing strategies for SaaS companies often rely on some form of the freemium model. Some SaaS businesses offer tiered levels of services. In this case, the free version offers the principal service at no cost, just at a limited capacity. Other businesses simply offer a free trial—in fact, 75% do. However, free trials are only effective if they convert at a high enough rate. Otherwise, they start to become a drain on resources. 

Are your free trials falling short? 

If so, here are some tips you can deploy to improve your conversion rates. 

#1 Deliver Value

Naturally, there’s inherent gatekeeping with a freemium model. As noted above, you typically entice conversions by placing restrictions in one of two ways:

  1. Offering limited functionality unless they sign up for the premium version
  2. Allowing full access for a limited time

Both models require that you convince the users that the product can address their needs and pain points. 

In other words, you must deliver value. 

Regardless of which path you opt for, it’s important that the interface is easy to navigate and use. Ways you can ensure that your freebie provides value is via:

  • User testing
  • Tutorials
  • Sending automated emails based on activity triggers
  • Providing personnel support during the trial period 

#2 Opt for a Limited Functionality Model

Of the two restrictions, a limited functionality model is better. It allows you to tease the product’s capabilities while promising more value if they actually pay. 

That means you need to determine which functionalities will best demonstrate what your product is capable of. There needs to be a balance—enough features that it doesn’t feel one-note, but not so many that they get overwhelmed. 

As Harvard Business Review notes, the chief purpose of freemium is to attract new users: 

“If you’re not succeeding with that goal, it probably means that your free offerings are not compelling enough and you need to provide more or better features for free. If you’re generating lots of traffic but few people are paying to upgrade, you may have the opposite problem: Your free offerings are too rich, and it’s time to cut back.” 

#3 Promote Premium Features 

When you give users a taste of what your SaaS is capable of, you need to follow that up by teasing the full service and most valuable features. The goal of this is to convince users that what they’re using is fantastic, but the premium model is even better. What they’re currently using pales in comparison. 

A paywall is a helpful reminder. When users explore certain features, you can automatically display a pop-up that explains limitations on their current account type.  

#4 Leverage Data and then Reach Out 

Your trial users will provide a wealth of data. You can see what they respond to and use. Similarly, you can gauge which users are the most active or enthusiastic. 

That group should be segmented into a warm lead category and then your marketing team should reach out. This helps establish a relationship and provides an opportunity to push them further down the sales funnel. 

Increase Conversions with Semgeeks

A freemium model can be an effective strategy for winning over new customers. It’s an opportunity to show just what your product is capable of. 

On your own, increasing conversions can be a challenge. But when you have the help of marketing wizards, it becomes a lot easier.  

Enter Semgeeks, an expert digital marketing agency in NJ. We have the team and experience your SaaS company needs to not only convert customers but retain them. 

Want to see what we could do for you? Reach out today! 



Forbes. From Freemium To Premium: How To Boost Revenue By Monetizing Free Services.

Harvard Business Review. Making “Freemium” Work.