We all love free trials to test new products or services, but what are the advantages for companies offering them? Free trials and free services are game changers in customer acquisition. Let’s find out why companies offer free trials and services.
Why you should always try products for free
Free trials are the best way to fully test newly launched products and decide whether you need them. To attract customers in a fiercely competitive environment, Fintech startups such as financial brokers often use such practices, including zero spread FX account.
Other companies operating in SaaS, streaming, and digital products also love to offer free trials to lower the purchase risk for consumers and to build trust. “Try before you buy” model allows customers to evaluate products without financial commitment.
Higher conversion rates and engagement
Some studies and research indicate that free trials and try before you buy models have a significant potential to increase conversion rates. Optimizing free trial strategies improve subscription rates by around 5-6% compared to uniform trial policies. Consumers are sensitive to well-implemented marketing communications, which allows firms to target additional retention efforts effectively. Trial periods also help users learn about product’s features which is critical to refinance engagement and gather behavioral data. This way, users are more likely to subscribe to a product while companies have more data to further refine their products.
Cost efficiency and Brand Trust
Free trails are also a cost-effective customer acquisition strategy. By letting users try your product risk-free, firms can greatly lower their customer acquisition costs (CAC). Surely, these trials could also encourage word-of-mouth and build the brand credibility, which is key for long-term success. Companies should know how to offer these trials properly to build brand image and do not damage the reputation which is critical in business.
Overall, free trials are a powerful strategic tool that can strengthen consumer trust, encourage product evaluation, reduce risks, and increase conversion rates. Properly operated free trials create a win-win situation for both companies and consumers.
**’The opinions expressed in the article are solely the author’s and don’t reflect the opinions or beliefs of the portal’**
