SaaS Companies’ New Business From Free Trials and Freemium

December 29, 2014

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Digital | Technology

Totango-SaaS-Companies-Freemium-Dec2014Source: Totango [download page]

    Notes: While 37% of respondent companies do not use freemium offerings or free trials to attract new business, one-third of those who do generate a majority of their new business from the model. That’s according to a study from Totango, which also finds that more companies are placing a high emphasis on new customer acquisition than on customer retention or upsells. Among the metrics identified, the largest share of respondents track unique website visitors (78%), with churn (74%) close behind. With respect to churn, the report notes that 35% of companies see annualized levels higher than 10%, while 31% are in the 5-10% range and the remainder seeing levels between 0 an 10%. Churn rates tend to be higher for high-growth companies.

      Related: Global CRM Software Market Grows by 13.7% Y-O-Y in 2013, Exceeds $20B

        About the Data: The data is based on a survey of more than 500 SaaS professionals. The largest share of respondents have $1-10 million in annual revenue. More methodological details are available in the report.


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