Article · 5 min read

What is the typical conversion from paid pilot to annual contract in B2B SaaS?

Jason Lemkin · SaaStr Free Intermediate

Gives you the benchmark to judge your own pilots against (roughly 60 to over 90 percent) and explains what drags the number down, which is usually heavy process change at the customer or reps closing pilots they should have walked away from.

  • Paid pilot to annual conversion runs roughly 60 percent to over 90 percent across the companies Lemkin works with.
  • EchoSign cleared 90 percent because pilots always ended fully in production, not just switched on.
  • The 60 percent case was a product needing heavy business process change, which improved as customer success got stronger.
  • Bigger brands switch from opt in pilots to opt outs with a 60 day cancellation window, and often see less churn.

The question it answers

  1. They want a pilot before they commit. How do I run one that ends in a contract instead of a shrug?

Read with it

  1. The source of the two moves that turn a pilot into a contract: put it on a full year agreement with a termination right, and... Heavybit Article · 10 min read How to Execute SaaS POCs that Convert Ashley Dotterweich
  2. A usable template for the document you should agree before the pilot starts: business outcome, usage milestone, stakeholder... Do What Matter Article · 11 min read Pilot Customer Success Criteria for B2B Startups Do What Matter
  3. Video · 8 min 5 Rules for Successful Startup Pilots, POCs, Trials | Dose 045 Andrew Ackerman
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