Conversion = Paid Signups/Free Trial UsersThe trial-to-paid conversion rate refers to the 

 number of paid users during HE Tuber the trial period as a percentage of the total number of users during the trial period. This indicator can tell us how quickly users are willing to pay for subscriptions to the product's services. If that number is low, we need to rethink things like our trial length, pricing, and incentives.

effectiveness of a product's value proposition in delivering its promise. CAC is more like an indicator of the intensity of product information delivery, while the conversion rate from trial to payment directly reflects whether the value of the product itself fulfills its promise in the eyes of users, because whether to pay is the most direct user vote.

For example, suppose you are a product manager at a SaaS company. 

Your product is an online document collaboration tool, and you offer a free trial period of 30 days. You want to understand your trial-to-paid conversion rate and optimize it.

In the first quarter of this year, you had 1,000 users sign up for a free trial, and 100 of them eventually became paid users and paid a monthly fee of 50 yuan. In this case, your trial-to-paid conversion rate is 100/1000 = 10%.

Now that you know this conversion rate, you can compare it to industry standards to see how you perform. Generally speaking, the trial-to-paid conversion rate for SaaS companies is usually 10-20%, so your performance seems to be average and there is a lot of room for improvement

.

So based on this indicator, you start to set up a project to adjust the product. In order to increase the conversion rate from trial to payment, you can consider the following strategies: improve the user experience and ease of use of the product, provide better user support, increase the length of the free trial or add More paid plan options. By tracking trial-to-paid conversion rates and constantly experimenting and adjusting, you can better meet customer needs and achieve higher revenue.