How to Offer Free Trials and Discounts Using Subscription Plugin

Offering free trials and discounts is a proven strategy to attract new customers and retain existing ones. This method, particularly in the world of subscription-based businesses, can significantly increase user engagement and conversion rates. Utilizing a subscription plugin to manage these promotions allows businesses to automate processes, track user activity, and maximize the potential of each offer. In this comprehensive guide, we will delve into the best practices for offering free trials and discounts using a subscription plugin and how to leverage these strategies to boost your business.

Understanding the Power of Free Trials and Discounts

Before diving into the technical aspects of using a subscription plugin, it’s crucial to understand why free trials and discounts are effective:

1. Lowering Barriers to Entry: A free trial removes the initial financial commitment, allowing potential customers to experience the product or service without risk. This increases the chances of conversion once the trial period ends.
2. Encouraging Long-Term Commitment: Discounts, especially on long-term plans, encourage customers to commit for extended periods, providing businesses with predictable revenue streams.
3. Building Trust and Loyalty: Free trials and discounts help build trust by demonstrating the value of a product. When customers feel they are getting a good deal, they are more likely to remain loyal.

Now, let’s explore how to effectively offer free trials and discounts using a subscription plugin.

Choosing the Right Subscription Plugin

To successfully implement free trials and discounts, selecting the right subscription plugin is essential. The plugin should offer a variety of features that cater to different promotional strategies. Here are some key features to look for:

• Trial Management Options: Ensure the plugin allows for customizable trial periods. This could include setting different trial lengths, renewal conditions, and automatic charges after the trial ends.
• Discount Code Generation: Look for a plugin that can generate unique discount codes and apply them automatically or manually at checkout.
• Analytics and Reporting: A good plugin should provide insights into the performance of your free trials and discounts, including conversion rates, churn rates, and user behavior.
• Integration Capabilities: The plugin should integrate seamlessly with your existing systems, such as CRM, email marketing tools, and payment gateways.

Some popular subscription plugins that offer these features include WooCommerce Subscriptions, MemberPress, and Paid Memberships Pro.

Setting Up Free Trials Using a Subscription Plugin

Once you have chosen the right subscription plugin, the next step is to set up free trials. Here’s how to do it:

1. Define the Duration and Scope of the Trial

Determine how long your free trial will last. Common trial periods range from 7 to 30 days. The length should be enough for users to experience the full value of your product without losing interest. The plugin should allow you to set this duration and define what features or services are included in the trial.

2. Automate the Onboarding Process

Using a subscription plugin, automate the onboarding process to guide users through the trial effectively. This could include setting up welcome emails, tutorials, or product tours that help users get acquainted with your offerings.

3. Set Up Automated Billing After the Trial Ends

Most subscription plugins allow you to set up automated billing that kicks in once the free trial period ends. This can be configured to charge the user’s preferred payment method without needing manual intervention. Ensure your plugin is compliant with regulations, such as GDPR, to handle customer data responsibly.

4. Use Reminders and Notifications

Remind users when their trial is about to end through automated emails or SMS. The subscription plugin should allow for customizable notifications, helping reduce churn by encouraging users to subscribe before their trial expires.

Creating and Managing Discounts Using a Subscription Plugin

Discounts are a powerful way to entice users to sign up for a subscription or upgrade their existing plan. Here’s how to create and manage discounts using a subscription plugin:

1. Design Different Types of Discounts

Create different types of discounts tailored to your audience. Some examples include:

• Percentage Discounts: Offer 10%, 20%, or even 50% off on the first month or year.
• Flat-Rate Discounts: Provide a specific amount off, such as $5 or $10, for new subscriptions.
• Bundle Discounts: Offer discounts when users subscribe to multiple services or products simultaneously.

Ensure your subscription plugin supports these various discount types and allows for easy customization.

2. Create Discount Codes and Set Usage Limits

Generate unique discount codes using the subscription plugin. You can set these codes to be single-use or allow multiple uses, depending on your marketing strategy. Also, set expiration dates and usage limits to create urgency and encourage quick sign-ups.

3. Implement Conditional Discounts

Use conditional logic within the plugin to offer targeted discounts. For example, you could offer a discount only to users who have been inactive for a certain period or to customers who have purchased a specific product in the past.

4. Monitor and Optimize Discounts

Use the analytics tools provided by the subscription plugin to monitor the performance of your discounts. Look at metrics such as the number of redemptions, revenue generated, and user retention. Based on this data, optimize your discount strategies to maximize results.

Best Practices for Offering Free Trials and Discounts

While setting up free trials and discounts using a subscription plugin is relatively straightforward, there are several best practices to keep in mind:

1. Clearly Communicate Terms and Conditions

Always make the terms and conditions of your free trials and discounts clear to avoid misunderstandings. This includes the trial duration, billing cycle, discount validity, and cancellation policies.

2. Use A/B Testing for Different Offers

Test different types of free trials and discounts to determine which ones work best. For example, you might find that a 14-day free trial converts better than a 30-day one or that a 20% discount is more effective than a $10 flat discount.

3. Leverage Email Marketing for Follow-Ups

Email marketing is crucial for converting trial users into paying customers. Set up automated email sequences using the subscription plugin to nurture leads, offer additional discounts, or upsell to higher-tier plans.

4. Provide Excellent Customer Support

Ensure that users have access to excellent customer support throughout the trial period. This can make a significant difference in their decision to subscribe. Use your subscription plugin to set up FAQs, chat support, or helpdesk tickets.

5. Highlight the Value Proposition

Always emphasize the unique value of your product or service during the free trial period or when offering discounts. Make it clear why users should choose your product over competitors.

Conclusion

Implementing free trials and discounts using a subscription plugin can be a game-changer for businesses looking to increase conversions and customer loyalty. By selecting the right plugin, automating processes, and strategically designing offers, businesses can maximize their growth potential. Follow the best practices outlined in this guide, and you’ll be well on your way to leveraging free trials and discounts to their fullest potential.