Tip #3: Tracking Conversion from Free to Paid Products
Using the EDD Enhanced Sales Reports Plugin, you can know how many paid and free products getting purchased, as well as a Paid Products sales percentage. You can find these KPIs when checking any of the reports tab, such Products tab.
When a customer starts using your free product, they are essentially trying it out and deciding whether or not it meets their needs. By tracking conversion rates, you can gain insights into what motivates customers to upgrade to a paid version of your product.
Tracking sales conversion from free to paid products on your EDD webstore is an essential aspect especially if you’re both offering free and paid products. This allows you to monitor the effectiveness of your marketing campaigns, improve your product offerings, and ultimately increase your revenue.
Here are the KPIs you can see on our By Product Sales Report. We should focus on the # of Paid Orders, # of Free Orders, and the Paid Orders Percentage.
What does a high paid orders percentage mean?
This means your customers loved your Free Products, that they felt the need to obtain more features which allows them to upgrade and purchase the Paid Product. We should study how your Free Product Versions should look like, not giving away too much features for the free users, then making them realize that they needed more.
Then, we market the Paid Product Version, having all the major and necessary features they actually need, which when properly documented and explained, will likely turn into sales.
What does a low paid orders percentage mean?
However, a low percentage means your customers didn’t want to purchase the paid version because:
a) Offers little value compared to Free Version,
b) Paid Version features not attractive enough,
c) Free Version already gave too much features that customers settled for it,
d) Paid Version is too pricey, and many others.
Overall, tracking conversion from free to paid products is crucial for your EDD webstore selling free and paid products. By monitoring and analyzing conversion rates, you can make data-driven decisions that will help you improve your marketing, and product offerings, and ultimately increase your webstore’s revenue.