How can you persuade customers to upgrade to a premium version of your product?

Unlock Premium: Tailoring Persuasion for Your Customers 🗝️💼 1. Customer Insight Dive: Employ analytics, surveys, and interviews to dissect customer behavior, preferences, goals, and pain points. 2. Segmentation Magic: Categorize customers into segments based on their needs. Identify compelling features and benefits for each segment. 3. Tailored Messaging: Craft persuasive messaging that resonates with each segment's desires. Highlight premium features that align with their unique needs. Empower your persuasion strategy by customizing your approach for different customer segments.

I observed behaviorial economics is the best way to achieve profitability & increase conversion to premium users. This comes at the cost of time, but the results are exponential. Investing time allows for the identification and resolution of key issues, pinpointing features with the highest adoption rates, and exploring monetization avenues without compromising the core product offerings. Eg Personalized Invites - As it gained traction over 2 years, adoption rate boosted, thus it was ready to be monetized, however completely restricting active users would hinder the core use case- differential request, thus word limit & quantity was restricted to offer premium.

Understand behavioral aspects of power users by studying their feature adoption patterns and their user journey within the product. For users whom you wish to convert, highlight the value proposition based on the user persona and help them follow the same user journey as your power users. This will help them in experiencing the key features which can motivate them to convert as paid users. Offering a free trial and creating a sense of urgency by limited period offers also helps. Another way to persuade is via in app notifications, or mailers explaining why converting to premium is beneficial. Showcasing customer reviews of paid users is also a good strategy to convince your users to convert.

People are ready to buy things, provided they add value to them. In the same situation, if they find that the same product can give them an even more advanced utility and offer much more to them, they will covet that. As product managers, we win when we can show our customers what advanced value we are offering through the premium. As many of my friends mentioned, free trials and an experience that makes them feel special are the least we as product enthusiasts can do.

As Product Managers, before we know the "segments" we need to take a step back and see if we can solve for one ideal customer. If we can solve for one, then that can become many. There is so much pressure for us to deliver to a huge audience right out of the gates, and that keeps us from being super close to a few users instead of our assumption about the "many" that we want to serve. If you can solve for one, you can learn from one, and iterate fast to increase that number. Being a Product Manager, and then a business owner that built our own products, this was the biggest most valuable lesson we learned in that transition!

Highlighting the value proposition involves clear communication and customer-centric messaging. Identify key benefits and unique features, emphasizing how they solve specific pain points. Craft a compelling story with relatable examples or case studies to illustrate real-life scenarios. Use simple language, avoiding jargon, and break down complex features into digestible points. Emphasize unique selling propositions that set the product apart from competitors. Incorporate customer testimonials for credibility. Consider visually appealing content like infographics or videos. Tailor the messaging to resonate with the target audience, aligning the value proposition with their priorities for maximum impact.

To persuade customers to upgrade, showcase how the premium version supercharges their experience. Instead of listing features, paint a picture of their success with it. Craft messages that speak to their specific needs and pain points, showing how the upgrade removes obstacles and unlocks exciting possibilities. Use channels like in-app messages and targeted emails to deliver these personalized benefits, highlighting outcomes like increased efficiency, saved time, or even boosted creativity. Make it clear that upgrading isn't just about features, it's about taking their experience to the next level.

Value proposition will be different for different personas. This can often be confusing . Let’s look at two personas that are prevalent in b2b products and how it relates to getting them to upgrade 1. Buyer Persona: This is the team that looks at the costs involved in using your product (upfront and maintenance). When marketing to them you have to focus on the financial value it provides to the customer. This doesn’t necessarily mean your product has to be cheap. 2. User Persona: They care about user experience, how well you solve their problem and how the product works overall. Show how the different tiers of your product offer additional value that is worth paying for and making the jump

When you are trying to move your customers to a premium version, one thing needs to be clear, they must be happy with the product that they are using right now. The premium product must offer value which makes their experience much better than what they are currently experiencing and must address a “great” to have feature which was missing in the product they currently use

A strong Value Proposition can help drive customer acquisition, increase customer retention, and ultimately lead to business growth. Highlight the value proposition which should be : Unique: Relevant: Clear: Compelling:

I disagree on using sense of urgency, such as limited-time offers for example. In general, creating urgency to make a customer upgrade is not the most customer centric approach. You can use social proof in case it is asked for. The most optimal scenario is when the customer creates sense of urgency after a non-pressure engagement with you.

I don’t think this is a good strategy. It might be great if you are chasing short term shiny metrics. But it doesn't work if you are in it for the long term. Because even if someone pays for your product NOW under pressure they will leave later if it's not the right fit for them. And it will show up as high churn rate. Instead focus on providing users all the support they need to evaluate your product. Build a signup flow that: -Helps you understand the key problem that the user is facing -Focuses on parts of the product that helps them solve their key problems -Reduces the time it takes for them to evaluate your product -Highlight what else your product is capable of doing should they choose to explore further

Creating a sense of urgency is crucial for prompt decision-making, accelerating the increase in business value. Incorporating proof points and testimonials, especially from peers expressing regret for delayed decisions, enhances the product's perceived value. If you have profitability metrics, that let you know the cost of supporting the product, you have the insights to create offers that help you play with pricing. Consider offering wrap-around support or enticing premium solutions to ease transitions and attract buyers efficiently. All of these can be experimented with and will provide metrics and more insights on how to get this just right for your ideal buyers.

This has become so cliched by many companies and people trying to sell services after a free webinar. Usually, they try to infuriate the FOMO in individuals and companies wanting to improve/scale themselves. We should be using this only when we see our users/customers getting the benefits of our product by giving the value proposition of the product free of cost and tracking their usage through various metrics. Sense of Urgency will help companies to have organic reach as well and increase NPS too rather than just trying to increase revenue for achieving targets. Note: Focus on building relationships with users rather than focusing on converting to subscribers.

In my experience, creating a sense of urgency is effective but requires careful execution to avoid seeming overly sales-driven. Incorporate usage-based cues in your software, like nearing API call limits or exhausting free storage. These indicators naturally guide power users to consider upgrading, aligning with their growing needs. This strategy respects users' decision-making processes, encouraging organic upgrades based on actual usage rather than pressure. Focusing on long-term customer value over short-term revenue gains fosters a more sustainable and customer-centric business model. It's about finding the right balance between creating a sense of necessity and respecting the user's journey with your product.

Offering just the right amount of free features, like Google Drive's 15GB or Miro's 3-board limit, is like giving a sneak peek into a cool new world. It's a clever way to let users try out and get comfy with the basics without overwhelming them. And here's the fun part - once they're hooked and need more space or boards, they have a super easy way to level up. It's like starting with a free sample and realizing you love it so much, you want the full experience. This approach keeps users happy and coming back for more, turning them into loyal fans in no time!

Moving users from freemium to premium can come in different shapes: for example trial periods or features behind pay wall. It can be a powerful strategy to offer core features for free and let users pay when it makes most sense for them. E.g.: Miro keeps their advanced collaboration features for premium. You can use the core value proposition in freemium, but if you want to collaborate and run great workshop, premium naturally makes more sense. Which strategy to choose depends on the product, market and user preferences.

If your users are invested in the free version of your product and are able to find value in it, all you need is a freemium model to nudge them towards becoming a paid customer. If the user needs are not fully satisfied with the free version, but you can instill confidence that the product will be able to solve for it with an upgrade, the choice will be a no-brainer. As we learn from Nir Eyal's Hooked model, finding the investment that could make users stay longer will be a key to retention post upgrade - be it time, effort, data or even referrals that give them a reward to return to the product and form a habit out of it.

There is more to free trials and freemium models than saying to the user “hey use my product for free”. But that's how it's implemented in a lot of companies. Implementing a successful free trial is a cross-functional effort between a lot of teams. It’s not something that sales or product or marketing can run in isolation. Here is what I’ve learned from launching free trials: -Keep the length of the trial long enough so that users get enough time to explore the product -Each user is different and needs a different journey as they explore the product. As part of the free trial try and get to know your users better -Don’t waste time automating the process unless you’ve figured out that free trial is they way forward for your team

One thing I found helpful from what I've seen even as a customer is offering a taste (free) of what the product is about. Limited features but it leaves the user wanting more. Sometimes as a PM, they need to give users/customers an incentive to try the product. At this point, once you hook them, maybe you offer them a free trial or 3-6 month offer at a discounted price to let them experience the premium version of your product. Often times a longer free trial or a few months offered at a discount can entice users to stick with the premium version especially if the price is right.

Assigning a customer success manager can significantly enhance the phases of onboarding and upgrading. This role isn't just about troubleshooting; it's about understanding customer pain points, aligning the software's capabilities with their needs, and providing valuable feedback to the product team. Automated onboarding, supplemented by detailed quick-start guides and a structured onboarding program, can significantly improve adoption rates. For complex implementations, partnering with customers for onboarding is essential. This initial investment in customer education and support lays a strong foundation for long-term success and revenue growth, ensuring customers derive maximum value from the product.

Talk to users to find what will help them make a gonogo decision. Some examples of how you can support them are: -Work with marketing team to build case studies that highlight the value proposition for your target demographic across verticals. -If you are relatively new then proactively provide customer references that users can talk to and build trust in your brand -Offer assisted demos if your product requires specific skill sets or infrastructure to use -During trial journey send out useful information to users as they hit important milestones. For example: - On completing the signup process send them link to demo videos that help them get started with the basics - Customize emails to them based on their activity during the free trial

Strive to persuade customers, and they will feel manipulated and leave you. Reduce time to value and surprise them with outstanding experience, they will remain loyal and upgrade. Great services will keep customers. Ensure you delight them and they will have plenty of reasons to upgrade.

In persuading customers to upgrade, remember that genuine value trumps aggressive sales tactics. Customers can sense when they're being manipulated, leading to distrust. Instead, focus on reducing the 'time to value', the time it takes for a customer to realize the tangible benefits of your product. Our strategy with the e-commerce solution was to surprise customers with an outstanding experience, making the value of upgrading self-evident. Great services and a commitment to customer delight are the cornerstones of fostering loyalty. It's like giving diners an unforgettable meal; they'll come back for more. When customers consistently experience high value, upgrading becomes a natural next step for them, not a hard sell from us.

I'd implement a gamification strategy to enhance user engagement with premium features. This would involve adding game elements like a points system, where users earn points for using features, joining challenges, or hitting milestones. These points could unlock premium features. Adding leaderboards, badges, and levels would foster competition and achievement, motivating users to explore more advanced options. This approach makes discovering the premium product's value fun and helps retain user interest and loyalty.

Know who you are talking to, Pick their problem Showcase the value in the premium version Showcase the future with the premium version Talk about ROI in the long term Talk about ROI in the short term Use stories or personal references from your previous interactions while you do this Quote other people like them who are using premium and can vouch for you!

I really like the reverse trial model where customers get access to paid features at sign up and move to a freemium plan when the trial ends. This means customers get exposed to maximum value and get to use the full range of solutions based on their context. At the end of the trial, they are left with a potentially very small part of the solution (the strategy is putting the most valued features in premium plans). This creates a frustration while revealing or increasing the perceived value of the solution to the user. This has been a very successful model for many B2B SaaS companies.