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Then you may not have the problem deeply enough to need the solution. It depends on a lot on the context B2B vs B2C, but I've experienced that the B2B customers

Then you may not have the problem deeply enough to need the solution. It depends on a lot on the context B2B vs B2C, but I've experienced that the B2B customers who won't sign up without an absolutely free trial are much much less likely to convert anyways, to the point where it's not necessarily worth the effort for sales + support.

Retailer 6y ago
In B2B, it could be that the person who wants to try out the service is an employee of a company. He/She needs to first test the service before trying to convince their manager (or the company) to subscribe. Such people might not have a corporate credit card to put in, could be company policy that such subscriptions are handled by a different department. They might also not wish to use their personal credit card for corporate services.
- fragmede 6y ago
  For large values of B, in B2B, employees have corporate cards, with discretionary spending, so that's something to consider. A SaaS product with annual purchasing, priced just under the discretionary spending limit (read: an employee can buy this and their boss will just rubber-stamp the request and not even give it a second thought), is far easier a purchase. However, if corporate has to get involved, the effort is approximately the same wether it costs $1,000 or $10,000 because a bunch of people have to get involved, committees formed, and studies done.
randall 6y ago
Also files under #chargemore for B2B, etc.
baddox 6y ago
I don’t understand. The only reason it would be beneficial to ask for the credit card now instead of later is if you’re hoping the customer simply forgets to cancel. It signals to me as a customer that you’re not confident that your free trial will convince me to pay.
- travisjungroth 6y ago
  The ease of conversion is definitely a component. And that has a few parts. Maybe you hope that people forget they don’t want it (like you said). There’s also hoping they don’t forget they do want it. People are pretty lazy and forgetful. There are other components. Credit card entry acts like a captcha, but it’s actually a useful part of the process (unlike clicking street signs). And the marginal cost of a free trial is low, but it’s not zero. If I can have less free trial customers but end up with similar paying customers, that’s a win. There’s not only one reason.
- mgreenleaf 6y ago
  Sometimes it is used as a verification of "uniqueness", since someone could sign up for multiple free trials using different emails. Not a problem for most products, but can be a pain.
  - mister_hn 6y ago
    In that case, something like electronic ID or webauthn might solve the problem?
- dangrossman 6y ago
  Suffice it to say, this has been heavily tested by thousands of businesses, and there's hard data behind many of those that land on requiring a card on file up front that has nothing to do with hoping people forget to cancel. It's about activation rates. If your service requires the user do some initial setup work to get value from it, like integrate your whatever into their website, they're MUCH more likely to follow through on that work after having given you a credit card to sign up (and perhaps had to discuss with their boss or IT dept or whoever to approve using the company card).
  - hombre_fatal 6y ago
    I have yet to use a service with this pattern that requires you to click an "Alright, start charging me $15/mo" button once their free trial expires. That would obviously be the most user-friendly thing to do. So, without that step, you can't say "has nothing to do with hoping people forget to cancel."
deleted 6y ago
[deleted]
capkutay 6y ago
Yeah I think there’s a general lack of understanding that leads inexperienced product people to believe that friction is always bad. Good friction (verifying emails, asking a question in the signup form, collecting a CC upfront) can result in more paying customers as you’re optimizing your experience towards people who are actually interested in buying your service. Rather than trying to cast a wide net and wasting resources on poor leads who want zero friction.
- paulie_a 6y ago
  I typically disagree with free trials for B2B. The user has no skin in the game and the account will go by the wayside.

Retailer 6y ago

In B2B, it could be that the person who wants to try out the service is an employee of a company. He/She needs to first test the service before trying to convince their manager (or the company) to subscribe. Such people might not have a corporate credit card to put in, could be company policy that such subscriptions are handled by a different department. They might also not wish to use their personal credit card for corporate services.

fragmede 6y ago
For large values of B, in B2B, employees have corporate cards, with discretionary spending, so that's something to consider. A SaaS product with annual purchasing, priced just under the discretionary spending limit (read: an employee can buy this and their boss will just rubber-stamp the request and not even give it a second thought), is far easier a purchase. However, if corporate has to get involved, the effort is approximately the same wether it costs $1,000 or $10,000 because a bunch of people have to get involved, committees formed, and studies done.

randall 6y ago

Also files under #chargemore for B2B, etc.

baddox 6y ago

I don’t understand. The only reason it would be beneficial to ask for the credit card now instead of later is if you’re hoping the customer simply forgets to cancel. It signals to me as a customer that you’re not confident that your free trial will convince me to pay.

travisjungroth 6y ago
The ease of conversion is definitely a component. And that has a few parts. Maybe you hope that people forget they don’t want it (like you said). There’s also hoping they don’t forget they do want it. People are pretty lazy and forgetful. There are other components. Credit card entry acts like a captcha, but it’s actually a useful part of the process (unlike clicking street signs). And the marginal cost of a free trial is low, but it’s not zero. If I can have less free trial customers but end up with similar paying customers, that’s a win. There’s not only one reason.
mgreenleaf 6y ago
Sometimes it is used as a verification of "uniqueness", since someone could sign up for multiple free trials using different emails. Not a problem for most products, but can be a pain.
- mister_hn 6y ago
  In that case, something like electronic ID or webauthn might solve the problem?
dangrossman 6y ago
Suffice it to say, this has been heavily tested by thousands of businesses, and there's hard data behind many of those that land on requiring a card on file up front that has nothing to do with hoping people forget to cancel. It's about activation rates. If your service requires the user do some initial setup work to get value from it, like integrate your whatever into their website, they're MUCH more likely to follow through on that work after having given you a credit card to sign up (and perhaps had to discuss with their boss or IT dept or whoever to approve using the company card).
- hombre_fatal 6y ago
  I have yet to use a service with this pattern that requires you to click an "Alright, start charging me $15/mo" button once their free trial expires. That would obviously be the most user-friendly thing to do. So, without that step, you can't say "has nothing to do with hoping people forget to cancel."

deleted 6y ago

[deleted]

capkutay 6y ago

Yeah I think there’s a general lack of understanding that leads inexperienced product people to believe that friction is always bad. Good friction (verifying emails, asking a question in the signup form, collecting a CC upfront) can result in more paying customers as you’re optimizing your experience towards people who are actually interested in buying your service. Rather than trying to cast a wide net and wasting resources on poor leads who want zero friction.

paulie_a 6y ago
I typically disagree with free trials for B2B. The user has no skin in the game and the account will go by the wayside.