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Are you confused about going for a free trial or product demo for your B2B SaaS company? If yes, this blog will help you make the right decision.
A customer chooses to partner with a company because of the product. SaaS companies either choose freemium or product demos to sell the product to customers. But which one is better? Free trials are considered the best way to get the product sold. However, some consider paid product demos better. This article examines how SaaS companies can prefer demonstrating the product.
SaaS free trial means when the customer tries the product for a limited period of time. This time is usually free and pre-decided by the SaaS product company. The user needs to see the product’s value and know its features beforehand. This will ensure they know what the product offers and hopefully sign up for the product towards the end. This is an extension of the product-based growth business model where time instead of the features limit the product.
In a freemium model, the product is limited by features, so if the customer wants to use all features – they need to sign up.
Here are the benefits of free trials-
While free trials are great for some companies, there are certain drawbacks as well.
A SaaS product demo allows you to display your features to the customer on their demand. This product demo ensures sign-ups happen. SaaS companies must qualify to perform a product demo so that they can display their potential to customers. The product demo must show what the product does and its usefulness.
There are certain benefits of product demos. Here are some of them –
A product demo is usually free. However, there are certain disadvantages of a product demo.
Now that we have seen the types of product previews, we can look at what works for which company and why. Whatever SaaS product presentation method is chosen depends on five principal factors –
Some companies offer a product demo and then move to a freemium model. Others choose a free trial first and then set up the product demo. A product demo works better if-
A product demo can be through a sales presentation, video format, or a product walkthrough. All this must be in an environment where the listener can ask questions and know the true value.
Ideal Case Scenario: A product demo showing the tool and how the aha moment will occur will be helpful. This can be followed by a 7-day free trial or a freemium model. A product demo gives you feedback on whether you are fit for the user or not.
Asking yourself some questions can help clarify whether the product demo or free trial will be helpful.
Finding answers to these questions will help analyze whether the product demo or the freemium will make the deal.17
Choosing the product presentation mode depends on user requirement, product type, product category, and sales team capacity. If the product requires help from the IT team for setup, it would be great to do a demo. If the product has short implementation times, it is better to choose freemium models.
Stanley Deepak is an accomplished sales and marketing professional with 15+ years of experience. He loves tech products and book reading. He writes on philosophy and culture on LinkedIn.
Published June 21, 2022, Updated March 02, 2023
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