Free Plans
The Free Plans feature enables you to convert trial subscriptions automatically, or subscriptions for which dunning failed, to a free plan. This helps minimize churn, improving the likelihood of renewals and conversions.
Scenario: Zylker Insights, an analytics platform, offers a 14-day free trial for its users. To retain user engagement after the trial, they configure the Free Plans feature in Zoho ERP. Now, once a trial ends, users are automatically moved to their free plan.
Enabling Free Plans
Here’s how to enable Free Plan:
- Go to Settings by clicking the Gear icon in the top right corner.
- Choose General under Subscriptions in the Module Settings pane.
- Toggle the switch to enable Free Plans.
Note: Subscriptions will be moved to the Free plan only when you have a free plan configured. If no free plan is configured, the subscription will be cancelled or will stay live based on the final retry action configured.
Configure Free Plans After Dunning Failure
Scenario: A Zylker Cloud customer subscribes to the Premium plan, but their final payment retry fails. Under Dunning Management, Zylker Cloud has configured a fallback plan (Free plan with minimum features). Instead of cancelling the subscription completely, the system moves the organization to the Free plan.
You can configure subscriptions to be moved to the free plan after all payment retries fail. Here’s how:
- Go to Settings by clicking the Gear icon in the top right corner.
- Select Dunning Management under Subscriptions in the Module Settings pane.
- Click the dropdown with If the final retry attempt fails, then and select Mark Subscription as Free/Cancelled.
Now, the following actions will be performed when the payment fails:
- Subscriptions will move to the free plan.
- Associated invoices will be marked as Void.
- If the corresponding Product doesn’t have a free plan configured, the subscription will be cancelled.
- The next renewal date will be removed, and no further renewal will happen for the subscription.
- The subscription will remain free until upgraded or cancelled.
Note: Proration will not occur when upgrading from a free plan.