What is the Trial Conversion Rate Metric?
The Trial Conversion Rate metric represents the percentage of free trials that successfully converted into paid subscriptions within a given period. It provides a clear indication of the effectiveness of your trial program in converting potential customers into paying subscribers.
You can find it in the Cleeng Dashboard under Analytics.
How is it Calculated?
The formula for calculating the Trial Conversion Rate is:
Trial Conversion Rate = (Trials Converted / Trials Converted or Terminated)
- Trials Converted: The number of free trials that resulted in paid subscriptions during the specified period.
- Trials Converted or Terminated: The total number of free trials ending either in conversion or termination (non-conversion) during the specified period.
Example:
On January 24th, 50 free trials ended, and 10 of those trials converted to paid subscriptions.
Trial Conversion Rate = (10 / 50) * 100 = 20%
How to Use the Trial Conversion Rate Metric in a Subscription Business
The Trial Conversion Rate metric is crucial for evaluating the performance of your free trial programs. You can use it to:
- Assess Trials: Monitor the conversion rate over time to gauge the overall success of your trial offers.
- Optimize Trial Offers: Analyze the impact of changes to trial length, features, or onboarding processes on the conversion rate.