— August 13, 2018
We’re steamrolling towards a future where almost every service imaginable is available in the form of a monthly subscription. Shockingly, the number of people using subscription-based services has increased nearly 800% since 2014, according to Forbes.
Think about how you listen to music, how you watch TV and movies, and, in some instances, even how you eat dinner every night — it’s all become a subscription-based service model.
It shouldn’t come as a surprise that many Software as a Service (SaaS) companies are climbing through the ranks and becoming the norm. Due to the number of companies offering software on a “monthly” subscription base, it’s crucial that you make your business stand out from the pack so you can hit that sweet conversion number.
There is a wide range of tips and tricks you can use to convert potential customers into livelong users of your software. We’re going to dive in and explore the four best techniques to increase conversions for your SaaS business.
1. The “Free Stuff” Rule
There’s a simple business rule that almost every company understands: consumers LOVE free stuff. As Small Biz Trends points out, science backs this up through psychological case studies. It doesn’t matter if you’re giving out a sandwich sample, a free version of your music service, or, in your case, a free trial to try out your software. The allure of “free” is irresistible to most people. You can use this to your advantage.
First, it allows potential customers the chance to see if your software is going to suit their needs. If someone downloads your software and realizes that this is something they’re going to use, they’re much more likely to immediately subscribe and become a customer. This is especially true if you offer a couple more “premium” features to paid subscribers not offered in the free trial.
Offering a free trial is also a great way to spread word of mouth about your business. If someone tries your software and enjoys it, they’re likely to recommend your service to a friend and mention that you have a risk-free trial. Once this word of mouth snowballs, you’ll have more program and boosting conversions.
Products Page from Microsoft. [Screenshot] SOURCE: https://products.office.com/en-us/try
Give Annual Subscribers a Deal
Another great way to increase conversions is by offering subscribers an incentive to purchase a whole year’s worth of service instead of month to month. The discount is going to vary based on the software you’re offering, but, much like free stuff, potential customers love a deal.
You may want to give them multiple options at the point of purchase and let them know exactly what they’re saving if they buy an annual subscription. For example, if your service is normally $ 10.00 a month, but you offer an annual deal of $ 80.00, you could use a whole host of advertising methods such as:
- Save 33% with Annual Subscription
- Save $ 40.00 Today!
- Get FOUR Months FREE (Incorporate the “free” kicker)
The Final Countdown
Have you ever been shopping online, looking at deals, and suddenly you see a sign that says “TODAY ONLY,” or “3 HOURS LEFT”? If so, you’re already familiar with the next tip to increase conversion — adding a countdown timer.
When you add a countdown timer to a deal, it creates a sense of urgency. This urgency will lead the potential customer to buy a subscription because they want to take advantage of the special offer. Your countdown timer leads them to believe that it’s “now or never” so they’d better jump on your offer.
The best part about adding a countdown timer to a deal is that you can market this offer in a number of ways. You can do a weekly deal, monthly deal, or a one-time deal. This method offers a lot of flexibility.
Custom Countdown from Time and Date. [Screenshot] SOURCE: https://www.timeanddate.com/countdown/create
Retarget Visitors Using Facebook
We’ve covered the importance of retargeting before, and for a good reason! It’s an excellent marketing strategy used to bring back customers who visited your page but didn’t make a purchase.
Simply put, if someone visits your website, a piece of code prompts a browser cookie to hang around in your potential customer’s browser. As a result, the potential customer will begin seeing ads for your software subscription while they’re surfing online.
Logically, the best way to reach the most people is through social media applications like Facebook. The person in question may have been on your page while on break at work, hanging out with friends, or just generally busy running errands. They didn’t have time to finalize the deal, and this technique allows you to “remind” potential customers that they were recently interested in your services.
You can even sweeten the pot by allowing the targeted ads to offer exclusive deals to people who visited your website. You might want to offer 10% off a month, show your annual deal, or even circle back and let them know that they can get a free trial of your subscription service.
Feel free to experiment with what works best for your SaaS business. The efficiency of each of the previously mentioned methods is going to vary based on the software you’re offering, your price point, and your targeted demographic.
You can mix and match these methods to skyrocket your conversions. For example, advertise your free trial on your retargeting ads. Create a countdown offering a deal on a monthly subscription. Or even lower the price of your annual subscription for the length of the timer.
It’s impossible to convert everyone, but, if you are willing to use trial and error while exploring these tips and tricks with your business, you can boost your conversions and bring in more happy customers.