I have a new bootstrapped web service that targets consumers. It has a free trial offer. The visit to trial conversion is respectable, ranging from 10% to 15% on 300 samples. However, my conversion from trial to paid is insanely low.
Currently I have 6 paying customers with 308 trial sign-ups. My service is very inexpensive at $4.95/month (billed in 1 month, 3 month, or 6 month increments).
My initial target was 1% conversion from unique visit to paid, but now it seems like a pipedream to achieve this figure.
I have a competitor which seems to be doing fine with similar pricing and features. I tried to differentiate my service by targeting a different set of consumers.
Is my sample size too small to draw a conclusion? I can scale up my visit traffic but 0.2% is way too low to make my startup profitable.
Update: I have been following the suggestions given.
I sent out a survey to 300+ users and received 13 responses so far. I also dug up some of my Google Analytics statistics.
My payment process has 3 funnels:
- View Cart (Page after user clicks buy)
- Check Out (Page where one fills out information)
- Completion (Page where one submits order)
From the observed time period: - 2800 unique visitors - 377 trial sign up - 217 used their trial - 42 at my Funnel 1 who clicked "Buy" - 7 actual paid customer
As you can see, there are actually 42 unique users who are interested in purchasing and converts at 1.5%. Unfortunately, I have 60% bounce rate on funnel 1 which dropped the actual conversion rate to 0.25%.
Lastly, should I be alarmed that only 20% of my trial users clicked "Buy"? The reason I'm asking is I want to know if I should spend more of my time improving the actual product or to improve the conversion rate through other means (website tweaking, marketing, etc). I'm bootstrapping with zero resources except myself and my own money.