Increase free plan signups by making it an active choice
Overview
Business Outcome
Free Plan Conversion Rate
Increase the percentage of website visitors who sign up for the free plan.
Behavioral Outcome
Active Choice
Encourage users to actively choose and commit to a plan, even if it's the free option, rather than passively accepting a default.
The Behavioral Science
Choice Architecture
Choice architecture refers to the way in which choices are presented to decision-makers. By requiring users to actively select a plan, including the free option, Meetings is designing the choice architecture to ensure the free plan is given equal consideration.
Endowment Effect
The endowment effect suggests that people place a higher value on things they own or feel a sense of ownership over. By having users actively choose the free plan, they may feel a greater sense of ownership and commitment to using the product.
How It Works
Instead of automatically enrolling users in a free trial or free plan, Whereby presents three distinct plan options - Free, Pro, and Business. Users must actively click on and select the plan they want, even if it's the free option.
By making the free plan an active choice, it becomes more salient and intentional. Users are more likely to perceive the free plan as valuable, rather than just a default they passively accepted. This can lead to higher engagement and conversion rates.
Additionally, the act of actively choosing the free plan can create a sense of ownership and buy-in. Users may feel more committed to exploring and using the product since they made a conscious decision to sign up for it.
How It Might Backfire
Decision Fatigue
If users are presented with too many options or the differences between plans are unclear, they may experience decision fatigue and abandon the signup process altogether. It's important to keep the choices clear and limited.
Perception of "Catching" Users
Some users may feel that requiring them to actively choose a plan, even the free one, is a manipulative tactic to "catch" them or trick them into signing up. Be transparent about what's included in the free plan and make it easy to upgrade or downgrade later.
How To Test
A/B Test
To test the effectiveness of this tactic, run an A/B test comparing the active choice free plan signup with a version that defaults users into the free plan. Monitor metrics like free plan signups, engagement, and paid plan conversions.
Frequently Asked Questions
Reduce friction by providing default options
Freshbooks provides users with a default web address during onboarding to reduce the mental effort required to create one from scratch.
Increase signups by blurring the product experience to leverage loss aversion
Groove blurs out the product experience behind the signup screen, making users feel they have something to lose if they don't complete the signup process.