Pros and Cons of Offering a Free Trial of Your Product/Service
Free trials aim to attract new prospective customers and convert them afterward. Trials with products/services aimed at particular audiences are quite effective.
You, as a business owner, have probably had the debate over offering or not a free trial at some point.You might have also thought over giving your customers a teaser of your product and make them pay for access to the whole thing.
Like anything else, offering a free trial is associated with several pros and cons that you should take into account before making your final decision. Below you can read about both advantages and disadvantages of offering a free trial of your product or service.
Free trials have the following models:
You offer the full products/service to a trialer for a short period of time (e.g. 2 weeks or 30 days)
You offer products/services with functionality and feature restrictions, hoping that customers will get hooked and upgrade to the full product
By the way, if you’re looking for a reliable merchant account(e.g. a continuity negative billing merchant account) at the lowest possible rates, turn to a reputable credit card processor in the field. With a respectable merchant account provider, you’ll be able to get the best merchant account services to meet your business wants and needs.
Free trials have the following pros and cons:
Free Trial Pros:
- If you’re offering an excellent product/service, it’ll make customers rely on it and choose to use as a result, thus turning into paying customers
- Customers will invest time in your product/service while trying it and probably stick with it after the trial ends
- This is a nice opportunity to get feedback from consumers, thus getting a better understanding of positive and negative sides of your product/service
- Once you make consumers be interested in your product/service, you can offer incentives (e.g. discounts), thus making your product/service more appealing
- Before making a purchase decision, consumers get an opportunity to personally experience your product/service, thus feeling more comfortable with it
- By signing up for a trial, consumers enter your marketing funnel and qualify themselves as a promising lead
Free Trial Cons:
- By offering your product/service for free, you invest time and money in it
- Trialers may sign up for your product/service, without being obviously interested in it and without any intention to use it afterward
- Competitors may use your free trials to reveal the details concerning your product/service
A free trial can serve as a great marketing tool for your company. It can help you establishgoodwill with new customers. Moreover, free trials can increase brand loyalty from existing customers, and provide a fine source of reviews and testimonials. Startups can use a free trial to get more feedback on their new products and then make improvements.
Author Bio: Electronic payments expert, Blair Thomas, co-founded eMerchantBroker in 2010. His passions include writing/producing music, and travel. eMerchantBroker is America’s No.1 continuity negative billing merchant account company, serving both traditional and high-risk merchants.