Optimizing Freemium Conversions Through User Onboarding
Freemium to paid conversion rates for SaaS businesses hover around the 2% mark on a good day. That means that 98% of your free users will stay that way forever—never diving into their wallet to provide you with the MRR that will lower your CAC.
Now, there are many methods you can use to try and increase your conversion rate. You can create a sense of urgency with a well-timed offer (e.g., “Get 50% off your annual plan, this weekend only”). Or you could work on your upselling, in order to close the penny gap. And these are both effectives strategies.