How do I handle free trials in Zuora?

Many businesses employ freemium or free trial strategies to allow potential customers to test their products or services before committing to a purchase. Free trials serve as effective tools for attracting new customers, with the aim of converting them into paying subscribers. These trials can be time-limited or ongoing, depending on the business model.

Free trials can be managed either externally or internally within Zuora:

- External administration: Trial accounts are set up outside of Zuora, and once a prospect decides to purchase, their subscription is created in Zuora.

- Internal administration: Customer subscriptions, including credit card information, are set up within Zuora at the start of the free trial period, with billing deferred until the trial ends. This method is suitable for time-limited trials with options for paid plans or automatic conversions.

There is an important consideration for free trials without credit cards. Most of the time, these are held outside of Zuora so the Zuora system does not being full of lead and prospect data as that information is better served in a Customer Relationship Management (CRM) system like Salesforce.

Zuora offers various options for free trials, including:

1. Endless Free Trial with Upgrade Option: Customers have access to a basic version of the product indefinitely, with the option to upgrade to a paid plan for additional features.

2. Time-Limited Free Trial with Upgrade Option: Customers receive a trial for a set period, after which they can choose to subscribe to a paid plan to continue using the product.

3. Time-Limited Free Trial with Automatic Conversion: Customers are automatically switched to a paid plan after the trial period expires.

When setting up free trials in Zuora, factors such as subscription dates and charge models must be considered:

- Subscription Dates: Utilize multiple subscription trigger dates to manage trial and billing periods effectively.

- Charge Model Type: Choose between flat fee or discount charge models based on business rules and pricing strategies.

Here are examples of free trial setups in Zuora:

1. Automatic Conversion: A 14-day free trial automatically converts to a paid subscription.

2. Discounted Trial: A one-month trial with a discount applied for the first month.

3. Renewal with Upgrade: After a one-month trial, the customer renews for a paid plan, upgrading to a premium package.

Effectively managing free trials in Zuora involves careful planning of subscription terms, billing triggers, and customer options to ensure a seamless transition from trial to paid subscription.