In case your product has each a free plan and a paid plan, you’ll most likely have 4 free (actively engaged) customers for each paid consumer. And we’re simply counting the actively engaged free customers right here — customers who love your product, discover worth in it, and have been utilizing it for lengthy sufficient so that you can know they’re right here to remain.
It doesn’t matter how good your product is, or how lengthy your consumer has been utilizing your product for, in all chance this ratio would maintain true for you.
And that’s efficiency so far as free to paid ratio of customers is anxious. So, that brings up the query. Why do some free customers fortunately pull out their bank cards whereas others keep on with the free plan perpetually?
I’ve spent years serving to totally different SaaS companies, in addition to my very own merchandise, remedy this precise puzzle. It’s not simple, however it’s undoubtedly…