How can I handle selling free trials in Revenue Cloud

SOLVD BLOG

How can I handle selling free trials in Revenue Cloud

Offering free trials is a crucial strategy for driving customer acquisition and revenue growth in today’s subscription economy. Let’s explore how to effectively implement and manage free trials using Salesforce Revenue Cloud’s robust feature set.

Prerequisites and Platform Requirements

Before initiating the implementation:

Active Salesforce Revenue Cloud license with appropriate permissions
Salesforce CPQ installation (required for advanced pricing features)
Product Ramp functionality enabled
Revenue recognition rules configured
Admin-level access and security profiles established
Billing and payment gateway integration completed

Product Configuration in Revenue Cloud

Navigate to the Product Catalog:

Create a Trial Product:
- Set “Product Type” as “Subscription”
- Enable “Allow Trial Pricing”
- Configure trial duration (typically 14 or 30 days)
- Set trial price to $0.00
Define Post-Trial Product:
- Link to trial product SKU
- Configure standard pricing tiers
- Set billing frequency
- Enable usage limits if applicable

Subscription Management Setup

Configure subscription parameters:

Trial Terms:
- Define trial duration in Billing Policy
- Set auto-conversion rules
- Configure usage limitations
- Establish termination conditions
Order Management:
- Enable automatic order creation
- Configure trial-to-paid conversion process
- Set up amendment rules
- Define proration policies

Revenue Recognition Rules

Establish revenue handling:

Trial Period:

Configure $0 revenue recognition
- Set up performance obligation tracking
- Define revenue schedule templates
- Configure revenue treatment rules
Conversion Period:
- Set up revenue allocation methods
- Define recognition triggers
- Configure multi-element arrangements
- Establish revenue schedules

Automation Configuration

Implement essential automated processes:

Customer Communications:
- Trial activation confirmation
- Usage threshold notifications
- Conversion reminders (5, 3, and 1 day)
- Trial expiration alerts
Internal Workflows:
- Trial signup approval process
- Usage monitoring automation
- Sales team notifications
- Conversion tracking alerts

Analytics and Reporting

Create monitoring framework:

Key Metrics Dashboard:
- Active trials count
- Conversion rate tracking
- Usage analytics
- Revenue pipeline impact
Report Types:
- Trial status by product
- Conversion funnel analysis
- Usage correlation data
- Revenue forecasting models

Revenue Recognition Rules

Establish revenue handling:

Trial Period:

Configure $0 revenue recognition
- Set up performance obligation tracking
- Define revenue schedule templates
- Configure revenue treatment rules
Conversion Period:
- Set up revenue allocation methods
- Define recognition triggers
- Configure multi-element arrangements
- Establish revenue schedules

Testing Protocol

Verify system functionality:

Technical Validation:
- Full trial lifecycle testing
- Billing accuracy verification
- Revenue recognition validation
- Integration testing
Business Process Validation:
- User acceptance testing
- Workflow verification
- Report accuracy confirmation
- Security control testing

Ongoing Management

Maintain system effectiveness:

Monitor trial conversion metrics
Review usage patterns
Optimize conversion triggers
Update system documentation
Regular security audits
Compliance monitoring
Performance optimization

Integration Considerations

Ensure system connectivity:

Payment gateway synchronization
CRM data flow
Marketing automation triggers
Customer support integration
Usage tracking systems
Analytics platforms
External billing systems

By following these guidelines and regularly monitoring performance metrics, organizations can create an effective free trial program that drives conversions while maintaining system integrity. Regular reviews and adjustments based on analytics will ensure continued optimization and success of the trial program.

Remember to maintain proper documentation and conduct regular training sessions for system administrators and sales teams to ensure maximum effectiveness of your free trial implementation.

Testimonials

Our clients say

From my initial call with Spencer through project implementation with John and Evan, my experience with the SOLVD team was excellent. They were quick to understand our business needs, clear when explaining the reasoning behind proposed solutions, transparent when reporting on progress and timeline, and all around enjoyable to work with. Would highly recommend and looking forward to continue working with them in the future!

Veronica Wong Director of Operations at Pathstream

SOLVD was very straight forward with everything needed to complete the project. No surprises, no issues, and cost was aligned with the estimate. They made implementation easy and quick.

Matt Benzaquen Sr Manager, Sales Strategy at Instabug

As a rule, I'm pretty stingy with my recommendations. So it's a pleasure for me to recommend Solvd as a top-flight Salesforce consultancy. Solvd recently led our company's conversion to the Lightning interface and did it on time, on budget and made it easy for me and my team. I know I'll use their services again, and am confident they can do the same for you.

Tim Tuttle CFO at Relevate Health Group