Let’s jump into the list.
We processed the data to parse the insights from the data and test for statistical significance.
Many companies use activity data to score leads. How frequently someone uses the product, how many people were encouraged etc.. The data suggests because buyers exhibit different usage patterns activity scoring could be disqualifying leads.
Target 100-140% Internet Dollar Retention. The best quartile of respondents observe net buck retention of 120%+. The top decile increase in 140%. NDR that is better is typically seen by startups than people targeting balances.
We’ve got two aims in sharing the outcomes
Aim to get 90%+ Logo Retention. More than one-third of respondents maintain 90 percent or more of the customers by count one year after obtaining them. Higher rates of customer retention are somewhat more prevalent from business and the mid-market.
The information supported rules of thumb but also raised some new questions to utilize trials.
Conversion Rates Aren’t Impacted by Trial Length. Shorten Trial Length. Most companies use 14 day trial. However, all trials convert at precisely the exact same pace.
Time and Usage Based Free Trials Convert Better. There are four ways to limit trial. Utilization: 500 of API calls upgrade. Seats: first two chairs free. Time: 30 day trial. Feature: upgrade for superior safety. Usage and time based trials have 2x the conversion prices.
Target 15%+ Assisted Conversion. The 50th percentile convert 15.5percent of free trial leads to paying customers when aided by a salesperson.
Goal 4%+ Unassisted Conversion. The 50th percentile of respondents convert 4% of leads to paying customers, once the conversion is unassisted (doesn’t involve a salesperson).
Thank you to everybody who participated in the survey, and in Patrick Chase. If you have questions or observations concerning this information, please email me or send me a tweet.
Requiring payment Increases Conversion Rate by 2.5x. Only 12% of respondents require payment to start trial. The others bet by receiving information and filling the top of the funnel using more leads is a trade that is much better. The data suggests it’s worth testing payment requirement for mid-market and SMB price factors.
When we distributed the poll, we would have anticipated the response. About 600 companies filed information. They span single ARR companies to SaaS businesses that are publicly traded. These businesses market to every buyer that is functional and sell at each price point. From merchandise from legal to promotion, to sales.
Salespeople Increase Conversion by 3.5x+. 75 percent of respondents employ salespeople to call upon prospects. That is true across every price point.
Between 60-80% of respondents tie annual contracts to free trials. Annual contracts predominate in the mid-market. At the SMB, month to month is much more prevalent. At the venture contracts appear. As we dug into the datawe couldn’t find any meaningful difference in free trial conversion according to contract length. Unless you have a reason to 14, so, stick to annual contracts.