Understanding Low-Quality Trials in SaaS Business

Building a strong relationship with customers is essential to growing your business. As a SaaS Business, it can be difficult to ensure your customer base feels connected and engaged with the brand. This issue is further complicated by inaccurate perceptions of your product. This article will discuss how low-quality trials can negatively impact the perception of your business, perhaps leading to churn, and how to remain confident in your product and combat these issues.

High-quality trials are a problem for SaaS businesses. If a customer is not ready, they can churn and cause major damage to the bottom line.

prevent churn client

How We Do It at Radix

Radix is a product-driven company. We have worked hard since our beginnings to create a solution that our clients enjoy and that helps them increase their recurring revenue faster. We have been documenting our discoveries and offering relevant material to the SaaS community along the way.

This also helps us with our acquisition strategy. Every day, we have a high volume of trials, and the vast majority of our customers start their purchasing journey with our content. So, without a doubt, free trials are extremely essential to us, and we make every effort to help our customers in their success.

Not all trials, however, are the same. Trials differ not just in terms of the sort of customer using Radix, but also in terms of user setup and how they use our platform.

In this section, we’ll look at how the two factors work together to help us find best-fit and poor-fit customer categories.

Then, you will use this in our marketing efforts to reduce misleading signals from poor-fit trials and increase our reach to good-fit trials. Let’s Go!

Radix Unit Economics

Customer Segment Types in SaaS

We may use a variety of factors to categorize our customers. These are some examples:

  1. Location
  2. Company Size
  3. Company email or free email

Likewise, there are several features that result from product usage. For instance:

  1. How frequently does the user log in throughout the trial?
  2. Has the user linked their billing data?
  3. Is the billing data in the correct format, and does the customer view key metrics as Churn Rate, MRR, ARPU, etc?

Some segments are rather simple to create. For example, a user that fits our ideal company size is from one of our key locations, signed up using their business email, has imported all of their data, and continues to log in is a high-quality lead.

A person signing up for a free email account from a region that isn’t usually strong for us and doesn’t link billing data or indicates intriguing behavior, on the other hand, might be a terrible fit or a user looking for something else. These low-quality trials have the potential to backfire on the data we rely on to make decisions.

Creating and defining the segments in SaaS Business

When a new trial is created, we begin tracking it in our Radix account. We monitor data such as the number of trials conducted throughout the time, the trial-to-paid conversion rate, and other leads and trials analytics. We usually conduct a lot of segmentation to better understand the leads that come in, but we may require to add more data to each customer profile via custom variables to arrive at better-defined segments.

The first step is to define the segments and custom characteristics to identify the rules and logic that represent this segment.

The second step is to define the inputs that you will use for that segment. In this case, they would be “Company name”, “Company Size”, “Email Address”, etc.

You can do creation and segmentation yourself with our platform. Dashboards are extremely intuitive and will help you make better decisions based on data.

free trial user


Understanding the trials which aren’t delivering quality leads to you is important as they can bring down your conversion rates. With a closer look, it can be identified and rectified to improve overall SaaS business performance.

By using Radix, you will be able to have a clear understanding of how low-quality trials are affecting your SaaS business. This will aid you to improve the quality of requesting users at each layer of your acquisition funnel while also providing insights into exactly what they’re doing on your product and what’s holding them back from becoming ideal customers.

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Luis Cordero Schiffmann
Luis Cordero Schiffmann
Digital Marketing Strategist & Web3 Passionate MBA with expertise in Science, Technology, and Innovation. I'm a big fan of the crypto revolution, the internet and business.