How do you reduce churn rate? (Your best practices)
I assume I'm not the only one dealing with this problem, 😀 so I'll seek advice from those more experienced and perhaps those who have a proven track record.
Whenever a user reaches the payment gateway, they often suddenly leave, either by uninstalling the app or closing the page. 🙈
How can users be guided through the payment method, and when should the paywall be applied? What are the best practices?
Personally, I do not like to put my card details in 3-, 7-day trials because I have had bad experiences, e.g.:
– wasn't announced by email that the trial ends,
– couldn't unplug manually my payment option,
– couldn't reach out to the developer to unplug my card (so I had to call my bank – now, I am more cautious).
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I have a 2 step order flow. When someone clicks "buy", they are redirected to step 1, which is a short form. But when this form loads, the payment form pre-loads off screen, so that when they click "continue", the payment form displays instantly.
This reduced churn related to annoyingly long load times. If they are still scared by the price and bounce, there's nothing you can do other than test other prices and discounts.
@emikes919 Which company does have this model?
@busmark_w_nika you mean a 2 step order flow? many. I use it for a service I'm currently running. The pros/cons are as follows:
pros
captures name/email before purchase bounce, can drip sequence emails to capture backend sales
adds friction - people who make it through are more likely to buy
cons
adds friction - more people drop off the longer it takes to get to the payment page
✌️Regarding when to put up a paywall:
My experience has been that the best time is when users have a clear sense that “my experience/efficiency will be greatly diminished without this paid feature”.🤔
Or, when they're already deep into using and relying on the free feature and are naturally curious about “what else can I expect from the paid version?”✨️
@partick_support I experienced with CapCut something similar, but after 2 years of using it they switched to PRO with basic features I essentially used for my content creation. I was kind of "forced" :D
Nika, does this link work for you? This presentation at MAU from AppBoys walks through a bunch of paywall testing results that drove significant results for their clients. Lots of 'this worked well, this didn't, this is why.' Let me know if you can't access and I will provide a summary. Hang in there!
@cholden_lewis Hey Holden, thank you, I can see presentation and video :)
@busmark_w_nika We had the same approach (14-day free trial, users needed to provide payment methods) and made the following key learnings:
bad customer experience, bad data
Users would always expect the trial to end automatically, regardless of how many times they are reminded that the paid subscription will start if they do not cancel during the trial. This would result in many unwanted paid subscriptions, which we would always cancel and refund to avoid hurting our reputation. In our statistics, this would show as churn, even though these trials never really started using our app in the first place.
You can only really trial an app if you can start using it
When we decided that we only wanted customers who use our product, we moved towards freemium (no credit card needed) and product-led growth tactics. We saw that more users got "invested" in our product, setting it up properly and inviting users. The results: conversions increased, our cost per trial and churn dropped by 90%, and we gained a lot of invaluable insight along the way.
I can say that, for our product, freemium and PLG paid off
@jonaslindemann That thing with returning money happens to us as well, and the result is that we only burn time on customer support by refunding people who are unsatisfied. So you are right in freemium!
I would say freemium approach is the best, where clients needs to upgrade to pro version to get unlimited usage of app.
The most horrible way is to force clients to put their card details to go on trial period.
Exit survey is a way to understand why clients are leaving, categorize them and try to get them back by sending emails.
@eljo_prifti Thank you, I was seeking such a perspective where the credit card is needed after the trial or when a person has already tried the product and solution, you said, makes better sense to me.
Bugster
Great question, this is a pain point for a lot of SaaS products.
What we’ve seen work best is delaying the paywall until the user has experienced a clear "aha" moment. That way, the payment feels like a natural next step rather than a blocker.
Also helps to be super transparent upfront:
Show what’s free vs paid
Remind about the trial before it ends
Make cancellation easy and frictionless
Trust builds retention. The smoother the experience, the lower the churn.
@juan_bautista_beck How do you usually find that "Aha moment"? Because I was willing to pay CapCut subscription after I got used to it (after almost 2 years).
Bugster
@busmark_w_nika Great example with CapCut. That happens a lot, some tools quietly become essential over time.
In SaaS, the "aha moment" usually shows up as a pattern: what are users doing right before they stick around or convert?
It could be exporting a project, inviting a teammate, connecting data, publishing something, whatever maps to core value.
Sometimes it takes data to find it. Other times it's just watching users and noticing where they smile or stop asking questions.
Totally relate to the trust barrier around payment, Nika.
I’ve seen similar friction, especially when card-first trials are involved. A few things that helped us reduce that drop-off:
Pre-paywall value delivery: We shifted more features into the free tier temporarily enough to build habit and trust before asking for payment. Once users felt real value, conversion jumped.
Transparent countdown timer + email alerts: Added a visible “X days left” banner inside the app and automated trial-end emails on day 2, 5, and 6. That small UX touch actually cut surprise churn.
Easy unsubscribe option: Made cancellation just 2 clicks from the dashboard. Sounds risky, but it built trust and ironically, more users stayed because they knew they could leave easily.
Tested paywall timing: Instead of showing the paywall upfront, we moved it to a “value trigger moment”
(e.g. when a user tries to export or integrate). Felt more like a natural upgrade than a block.
Also totally agree trial abuse concerns are valid, but trust-first design usually wins in the long run."
@priyanka_gosai1 A good example is finishing the product/output, but after rendering, placing a watermark means the user is half-committed because they have done something, but payment is required to complete it. 😅
Card-first trials are difficult to imagine as working well unless they are from large/well-established names. Free plans are the norm ...more so because they show your confidence in delivering real customer value that will make your customers subscribe.
That's the route I would go for.
@manu_goel2 This is a very good point. When a company is starting, I am 4x times more cautious about giving them money. :D
Pokecut
Hi Nika, thanks for bringing up this important topic! Reducing churn around the payment gateway is definitely a common challenge. From my experience, a few best practices can help:
Build trust early: Clearly communicate the value users will get before showing the paywall. Consider offering a no-credit-card, limited free trial to lower friction.
Transparent trial terms: If you offer trials, send reminder emails before the trial ends and make it easy for users to cancel anytime without hassle. This builds trust and reduces negative feelings.
Simplify the payment flow: Minimize steps and distractions during checkout. Use familiar payment methods and ensure the UI feels secure and professional.
Timing of paywall: Instead of immediately blocking access, try to first demonstrate value through onboarding or limited features. Apply the paywall once users understand the benefit and are more ready to commit.
Support accessibility: Provide easy access to customer support directly within the app or payment page to address concerns promptly.
Your caution about trials requiring card details is valid and shared by many users. Offering flexible options and transparency can make a big difference in reducing churn and building long-term loyalty.
Hope this helps, and best of luck with Minimalist Phone!
Pokecut
Great question! This is something almost every product builder faces at some point. 😅 Here are a few tips that have worked for me and others in the community:
Timing is everything ⏰
Don’t hit users with the paywall too early. Let them experience the value of your app first—ideally, after they’ve had an “aha!” moment or completed a key action. This way, they understand what they’d be paying for.
Keep it simple and transparent 🧾
Make sure your payment flow is clean and easy to understand. Show exactly what the user is getting and avoid hidden fees. Clear CTAs and minimal form fields help reduce friction.
Offer a trial or money-back guarantee 🎁
Giving users a risk-free way to try your app can significantly boost conversions. Even a short free trial or a refund policy helps build trust.
Address concerns up front 🤔
Show social proof, reviews, and security badges near the paywall. Let users know their payment info is safe and that others have had a positive experience.
Test and iterate 🔄
A/B test your paywall placement and messaging to see what works best for your audience. Sometimes even small tweaks make a huge difference!
You’re definitely not alone in this struggle! Hope these tips help, and would love to hear what’s working for others too. 🚀