From Netflix to Amazon Prime, PlayStation Now to Spotify, the free trial is something every successful streaming service offers its users as a matter of course in 2020. This model has been so successful that businesses of all types have started to adopt this approach in a bid to attract more permanent customers. There are many benefits to this style of introductory offer, especially for digital only businesses, however, there are also a few downsides, too. Here’s Probella’s guide to the pros and cons of free trials in 2020.
The Pros
Data capture and customer details
One of the main reasons the free trial is so popular amongst the most successful businesses is that it allows them to gather data from a vast number of potentially interested customers. Almost all free trials will include the proviso that the customer submits at least their email address in return for use of the service on a limited basis. These days, credit card information, addresses and other details are also commonplace. Though rules like GDPR in the UK mean that all data must be treated responsibly and in accordance with any legal regulations, collating a database of names and contact details from customers who have subscribed to a trial period is still possible.
It Demonstrates Your Confidence in the Quality of Your Product
Free trials will cost the business something initially and customers generally understand this. By offering people the opportunity to try out your service or product for a limited time on a totally free basis, you are sending a clear and confident message. You are essentially saying that you believe the quality of your product is of such a high standard that you are willing to let people try it out for themselves. A modern-day version of the “try before you buy” approach to sales, this model rarely fails unless the product or service itself is below par.
Absence Makes the Heart Grow Fonder
After using a service for a period of time, users will become accustomed to it and ultimately, feel as if they are missing out when it is no longer available. All the best free trial offers provide customers with such a good quality of service that when the introductory period comes to an end, they feel more than comfortable signing up for a paid subscription. This is a particularly clever way of marketing as you are effectively changing the way your customers behave over time, integrating your service or product into their daily lives.
Word of Mouth and Offline Marketing
Even if your potential customers cancel their free trial after the introductory period has expired, there is still a chance they will recommend you to friends and family via word of mouth. Everybody likes a freebie and most of us like to recommend ways our friends can save a little money, too. Even if every sign up doesn’t convert to a long-term sale, in terms of advertising, this approach is always effective.
Feedback and Improvements
When you offer your customers the chance to cancel, you can always request some information about why they have made this decision. This gives you an effective and very direct way of gathering feedback about the quality of the service you have on offer. Though we would recommend keeping surveys short and succinct, asking a few specific questions that will help you to assemble a picture of what your customers value the most is a great strategy.
The Cons
People Can and Will Cancel
With so many free trials available now, in both the business and domestic spheres, customers understand that they have absolutely no obligation to continue using a service once the free, introductory period has expired. Unless your service is so good that people feel as if they are missing out when they stop using it, you can expect more than half of your free trial accounts to cancel without hesitation.
They Can Be Open to Exploitation
Anybody with more than one email address and bank account can potentially enjoy the benefits of a free trial period on multiple occasions. Though there are safeguarding measures you can take such as tracking and logging I.P addresses or other sensitive information, it can be extremely difficult to prevent determined scammers from taking advantage of your generosity. Be prepared to deal with customers who are hell bent on getting your service for free for as long as humanly possible.
Competition is Intense
In 2020, everybody from artisanal bakeries to internet security companies are offering free trial periods to their customers, meaning that competition is fiercer than ever before. It is no longer enough to offer a basic service for the duration of a free introductory period, you must now ensure that you are offering something above and beyond your competitors. In reality, this can be financially challenging, especially for smaller businesses or those who are just starting out. Though it is still possible to make a success of a free trial, it is no longer a guaranteed way of generating engagement.
Disputes, Complaints and Cancellations
The number one complaint when it comes to free trial services is that the cancellation process was too difficult or confusing to understand. If customers feel that they have been misled or that they haven’t been treated fairly, they are likely to make this public knowledge on social media and may even threaten legal action.
Summary
There’s no denying the effectiveness of a well-planned and genuinely valuable free trial period, however, this model of promoting subscription-based services is not flawless. Only ever offer this kind of promotion if you are in a financial position to do so and if you are fully confident about the level of quality you can offer your customers. Essentially, you are trying to establish a base of satisfied, repeat subscribers who see your service as a part of their everyday lives. This will only happen if people feel as if they have been given an experience that is well worth the price.
