Develop A Successful Freemium Conversion Strategy – This is how!
Every company marketing in the B2B SaaS space is looking for new, creative ways to grow and scale their business. Nowadays, many of them are choosing the Freemium Business Model to present their solution to the B2B world. Due to its many benefits, according to a survey by Techcrunch, this business model brings conversion rates up to 10%.
While many companies that choose the Freemium model succeed in creating easy-to-use products that easily convert users into customers, they often struggle with the Sales and Marketing efforts in order to best present the Freemium business model to their organizations because their efforts aren’t able to leverage all the momentum that comes with a Freemium model.
Unless you connect your product to your Sales & Marketing tools, your sales and marketing team will be blind to everything that happens in your Freemium. This means they have no context to reach out. Before investing resources in tools, teams and data in creating a Freemium Business Model, make sure that your sales and marketing efforts are heading in the right direction.
Wondering how to “connect the dots” between your Freemium experience, and your sales and marketing teams?
In this blog, we will share some of the trends, tactics and techniques used by data-driven marketing and sales representatives that have proved to be efficient.
Step 1: Create a Clear Ideal Customer Profile
Active users who try out your software for free might not be your ideal customers. Don’t waste precious time and resources dealing with the wrong people. Do a deeper research, and separate ideal customers from beta users that are not ready to purchase your solution.
You can try segmenting your audience based on:
- Geographic segmentation (location)
- Demographic segmentation (company size, industry, role, company working hours, etc.)
- Psychographic segmentation (lifestyle, values, social class, and personality)
- Behavioral segmentation (usage, loyalties, awareness, occasions, knowledge, liking, and purchase patterns)
Remember to deeply profile your lead to see if they also match your ideal customer profile.
Step 2: Clear Tracking Plan for Users
Your sales and marketing teams need a constant stream on how Freemium beta users are engaging with your product in order to properly measure user engagement and use these metrics for deep analysis, towards creating a successful Freemium model.
Your tracking plan is the starting point to check whether your Freemium model is a successful one, or a total failure. If your tracking plan is missing some crucial elements or its structure is poor, you won’t be able to check out how beta users are interacting with your product. Moreover, your sales and marketing teams will miss out on a great opportunity to see whether their efforts are paying off.
If you are stuck with slow or manual data, your teams won’t be able to keep up with your leads. Outdated data is almost as bad as no data. Try syncing your product data to your sales and marketing tools in real-time. A clean and consistent tracking plan over your key activation events is core to spot the buying intent.
Step 3: Delegate a Freemium conversion “owner”
Implementing a Freemium business model can be very time-consuming. Thus, one of the best practices is to have at least one person who will monitor the whole process from a sales and marketing perspective. This person will be responsible for leading the sourcing of data, building segments, templates and workflows, and bringing this product-led growth system to life.
With the Freemium model, your sales & marketing tools need to adapt to the new buying journey:
- Website visitor (inbound lead)
- Freemium sign up
- User successfully starts using the platform
- User makes a subscription (or sets up a meeting with a sales rep)
Step 4: Nurture in Every Stage of The Buyer’s Journey
Now, that you can identify how your Freemium beta users are moving down the buying experience, you need to design the best content experience for them too. Segmentation enables you to group similar leads at different stages of your customer journey, and nurture them based on the stage they’re in by using multiple channels.
Although it may sound like a routine task, this is the part where many data-driven sales & marketing teams fail. They prepare perfect sales pitch and marketing materials, but forget to use the context they have on each Freemium user to tailor the message they are delivering.
Personalizing content based on product usage data will make your brand more relevant, and portray your marketing and sales reps like helpful experts. By building your segmentation plan around activation events, it is becoming very simple to create highly-focused messaging around moving your Freemium users towards conversion. This can be your best opportunity to differentiate from your competitors.
But wait a minute…
Since a beta user may move quickly down the process (or not), your segments need a real-time update when new events are tracked to prevent the wrong message being sent.
Finally, you need to tie all your tools, teams and data together in order to optimize your Freemium experience.
- Capture your product data as events
- Use your key activation events to create segments
- Use segments to map the free trial buying process
How we do it
At Sales.Rocks, after implementing the Freemium business model, we noticed that more and more accounts are engaging (and re-engaging) with the Sales.Rocks’ brand and product as a result.
To try Sales.Rocks’ Freemium model, you need to create an account by filling in your name and email.
However, Freemiums are not a silver bullet that works in isolation. Our sales and marketing teams are the leading force here. They are working hard to show the value of our sales and marketing enablement platform to future customers via content, campaigns and activities.
Sales representatives are educating potential users in every stage of the customer journey. They try to understand the context of a lead and engage them in a personal, relevant and helpful way.
On the other hand, Marketing representatives pair this with your existing documentation. Together, they build a picture of what our free users want most at each stage, and find the matching content and assets for them.
Today, on the web, there’s the impression that everything has to be free. At the same time, it puts a lot of pressure over the heads of marketing and sales teams to fight for the prospects’ attention, and to convince them that their solution is the right one for their pain points.
At the end of the day, all teams’ strategies can help a free user become a paying customer, but if the product doesn’t deliver a great user experience with the initial promised value, all efforts will be lost. Practice shows that if a free service doesn’t convert enough free users into paying customers, it won’t succeed on the long run.