One simple trick to convert more free users into paid customers

by Frederic Melanson in ,
Blog post visual one simple trick to convert more users

Focus!

(Stop here if you only wanted the answer 😆 Continue to know how to apply it 😉).

Whether you're product-led (or one of the 22 other new "something-led" terms...), be thoughtful about when & how sales are involved!

Why?

Because it is expensive to involve sales 🤷 Sales reps aren't cheap.
Aggressive sales or marketing campaigns can scare prospects away.
Sales reps are busy enough. You don't want them chasing ghosts.

In the case of product-led growth, it comes to quality over quantity.

Aka, be selective!

You want your touchpoints to feel like this:

Bulls eye gif
The average product-led company only engages with 50% of its users.

Here's what I learned on engaging leads from leaders at high-growth product-led SaaS (real example from Loom at the end) 👀👇

You should engage users early in your funnel if...

Your product requires more complex integration and onboarding.
There are gatekeepers to pass before users see the value. Like requesting IT access to some data source.
Your new free user is working at an enterprise-sized account.
Users are unlikely to experience the “aha moment” during their trial.
Your ARPU is high enough to support a larger sales team. (Usually over $50MRR ARPU.)

You should engage users later in your funnel if...

Your product is simple enough for users to get immediate value from it.
Your product has simple expansion loops that allow users to invite others easily.
You need usage validation/data points from users before you engage with higher-level decision-makers.
You have a lower ARPU but can still convert free users into team or enterprise plans. 
Sales engagement strategy for product-led businesses

And it doesn’t need to be complicated.

Here's a real-life example👇

Loom logo

We spoke with Laura Hart, director of demand generation at Loom & Tommy Fink, Head of Growth, to understand how they prioritize leads for sales touchpoints. 💬

🎯 Here are the 3 main data points Loom's team looks for:

  • Where is our user in the account hierarchy? Do they have decision power in the company and can they move the needle for an upsell?
  • What’s our user-to-company size ratio? Do we have a good % of users at the prospect company? What about % of users per employee in a division (product, for example)?
  • Do we have power users within people at a given prospect company? Are users reaching PQL usage? 

If users meet those criteria, SDRs or AEs engage in sales conversations!

That's it.

Not more complicated than that.

The rest of their users go the full self-serve route.

And it works.

What you can do right now to focus & get more sales engagement from users (with examples)👇

1. Know when users find value in your product. (aha moment)

For us, it's when a user receives a blindspot, reaches out and gets a response or books a meeting with a prospect.

2. Use the bullet points above to determine if you should engage users before the aha moment or after the aha moment.

At our price point, and since we made for end-users (reps), we need to engage later in the funnel.

3. Use PQLs to provide your reps with the best leads to focus on.

Using our product blindspot feature, we can trigger nudges to reps or prioritize leads based on product actions.

For example, Bliinx lets me know when users take meaningful actions in our product, that are worth engaging them on and initiate a sales convo.

(Our product blindspot feature for PLG Sales is in beta, reserve your spot here).

4. Adjust your email marketing campaign to PLG.

We've set up contextual touchpoints with our users.

For the top of the funnel, automated ones, we use customer.io.

For middle-of-funnel and converting into paid customers, we use Bliinx product blindspots (in beta).

5. Use in-product triggers to convert users for you.

Highly recommend Userpilot.io or Intercom for in-product prompts.

Another great technique is using feature walls in your product experience, like what Pitch is doing (showcased here).

6. Once it's finally time for reps to jump in, go for hyper-relevancy & personalization to book more sales meetings.


That's all for today, folks! Hope this was helpful :)

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Have a wonderful day!

Fred

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