Why do we define the trial use of our product on a time basis when it has no correlation with the use of it?
We are choosing a 30-day trial period just because time is one of the easiest ways to measure ourselves. Our lives. But it doesn't even make sense for job applications. It doesn't measure skills. So why are we putting our products under the same nonsense?
Time has no correlation with the value that a product can actually give you.
If you do a 30-day trial period at a gym you are forcing (“giving her the opportunity”) the user to go to the gym everyday for that 30 day period. Why do I think they are forcing the user? Because the 30 day trial period has no correlation with working out. Is it enough time to get in shape? Maybe for some but for sure not everyone. We forget that time works as a sand clock in our heads. As time goes by we feel we are running out of the opportunity and therefore it won't be worth it. We also have an issue with why we actually wanted to join the gym in the first place (we have to figure out in 30 days). Also we need to add that there is a minimum time (or sessions) that we need to educate or train the user to actually get the best value of our product.
So let’s break this down using Mattermark as an example.
First, a brief intro to the company Mattermark and what they do, “Research, prospect, and track the fastest growing private companies with deal intelligence.” They focus on three main markets: Private Market Investors: Venture capital, private equity & hedge funds; Lead Generation: Sales & business development professionals; Merger & acquisitions: Corporate development & investment bankers.
Disclosure: I have no relation to the company, apart from having tried their free trial, loved their product, followed their founders on twitter, and believe they have a great future.
Finding the right metric
First we need to find the right metric. Why are we imposing a metric (time) to our product when they are not correlated with the value of the product? Mattermark (that probably has studied this) is saying that 14 days is enough for you to learn how to use the product and get the best value out of it or at least enough to convert into a paying user.
As mentioned before the tool is used for: researching , prospecting and tracking. Lets start by saying that if I never used the product there are two considerations: first, that I have to make time in my (already busy) schedule to learn how to use it, and then figure out enough things to “research, prospecting and tracking” so that my conversion rate creates value. More about this later.
We need to give our products the tools to enhance their value for the users.
Educate the user
If we are in the trial period of a product it means that we have an “intention” of trying it but we don't know how to use it. If we were referred by a friend or we have used it under someone else’s account we can understand the concept of the value proposition and tools but not how it will create value to us.
If we actually already knew how good it is and that is worth while to pay for it, why would we sign up for the trial period?
We wouldn’t. We need to be educated on the features and tools of the product. We need to find the diamond in the rough.
Remove the unnecessary friction in the learning process and show us the magic.
How do we know that 14 days is enough for me to learn how to use Mattermark? Why 14? What is the relation between 14 days and the functionality of the product? Like we mentioned before time is not the best metric for the trial period.
Where is the Value in Mattermark? How does a user convert into a paying customer? Remember: “Research, prospect, and track the fastest growing private companies with deal intelligence.” So…
Where is the Value?
The cheapest plan starts at $399/mo. Wow, I know. I have already written about the M.U.P (“Minimum Use of Product”) and why I think Mattermark has a huge potential to increase their number of users. The value is there.
Mattermark conversion rate depends on the the users own conversion rate.
How many leads, startups, investors or jobs can I find with their tool so I feel it’s worth while to pay for it? 10? 100? 200?
Remember that my conversion rate is a % (percentage) that is not necessarily the same as another investor (e.g Yang Ventures). But today we are all measured with the same trial period because it’s defined as time. If my deal flow is smaller than a VC, my conversion rate will probably be smaller, too. But I’m not competing against them but with myself. How many searches and prospects do I need to find value in it? (enough to start paying)
The value of the product is not related to the time I spend on it but on the amount of searches and information I can get that will convert into a good lead. Why not measure the trial period in leads? Learn from the data and track the conversion rates of the clients to improve the usage.
I'm not going to say I know how many “leads” you should be able to get from Mattermark before you pay. I have no idea.
What I do know is that they probably have an idea. They are data experts. There is an amount of searches, prospects and leads in which the user gets that “Aha!” moment where they feel that this is worth paying for.
That moment where the value hits the user, magic happens.
Friction
The last is just a small detail on friction. What creates less friction: trying to log in after 14 days and having to approve my credit card? Or doing a search of lead and finding out the next time I will have to pay for it? The user is in two very different situations.
In the first one I’m standing outside, trying to look through the window and seeing everyone is warm inside. In the second one I'm warm inside drinking hot chocolate and I just want more marshmallows. Can I have one more?
I believe this analysis can be applied to many other products that have free trials. I would encourage you to understand your product and adapt everything to the value proposition. Not only the free trial, but business model and monetization strategy. Remember that the value is defined by the users, and they should be your first priority.
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