What is a SaaS Reverse Trial?

A reverse trial is an onboarding method in which a user is granted a free trial on the highest level of your service, say a month to try out the premium features, and then is transferred to a less expensive package or a free option if they don’t buy the subscription. This process facilitates user engagement with the product’s various aspects early on, preceding a purchase.

A regular free trial begins with a limited or no-frills version and later lets you access premium features for a brief time. A reverse trial (a premium trial or opt-out trial) is just the opposite. The system initially assigns the user to the highest available tier, with a transition to a lower tier after a set duration.

• The premium service level is provided upon user registration;
• A set trial period, usually 7-21 days;
• The plan automatically transitions to a free or limited version when it expires, and no automatic billing occurs;
• Usage-related hints and reminders that emphasize premium features during the trial;
• There is a provision to adjust the service plan, applicable both before and following its expiration.

Example:

A reverse trial involving project management tools for teams to understand automation and reporting functionalities of a product during consistent application with data. Analytics software does something similar, where setting limits of storage or users encourages upgrading.

One element influencing time to value is the provision of the tool’s premium features without charge during a reverse trial. Users can interact with product capabilities before an upgrade prompt, which often occurs during periods of user interest. This is associated with early activation, as more users complete specific actions during their initial sessions. But then, as the cost of conversion is low, a few users may convert out of habit rather than genuine need; therefore, monitoring the patterns to upgrade is a good indicator for an accurate forecast.

Generally, a user will move through different steps: onboarding (a premium period plus feature discovery), a mid-trial check-in (usage-based nudges and reminders), and then a conversion/downgrade step at which the user has the option to stay on or upgrade with pricing transparency.

• Reverse trials should be used by products that have some “wow” feature that is not only hard to describe but also very difficult to grasp until seen or experienced firsthand.
• Onboarding design quality influences the extent to which users discover and interact with premium functionalities and features.
•  The temporary allocation of premium resources for each trial signup is associated with an adjustment in infrastructure costs.
• Automatic payments for a downgrade typically occur only when the user provides express consent.

The​‍​‌‍​‍‌ optimal duration of a reverse trial is typically a few days, say 7-14 days, for lightweight products, and up to 21 days for those with a longer use cycle. The length of a trial period is dictated by value; when users quickly see value, a short trial will be enough.

The core benefit is a faster, clearer path to showing product value, but reverse trials come with trade-offs worth weighing.

Consider: 

• Does the product include a premium feature that is challenging to describe, yet provides a specific user experience? 

• Is repeated usage often associated with their comprehension of the feature? 

• Can the free trial be converted faster than expected for my product?

Factors for decision making:

• How complex is the premium offering?
• How long is a typical user’s usage cycle?
• How well activated and how high is the conversion rate on average?
• Are you in a position to implement the auto-downgrading feature for your product?
• How does your audience typically respond to unexpected billing?