What does the trial-to-paid conversion rate measure?

The trial-to-paid conversion rate specifically measures the percentage of users who transition from a free trial of a product or service to a paid subscription or purchase. This metric is crucial for businesses that operate under a freemium model or offer trial periods, as it directly indicates how effectively they can convert potential customers into paying ones. A higher conversion rate usually signifies that the product meets customer needs and expectations during the trial phase, compelling users to continue beyond the trial period.

In contrast, other options do not capture this specific relationship. For instance, measuring the number of product trials initiated provides insight into interest or engagement but does not reflect how many of those interested users ultimately convert to paying customers. The average revenue from each customer focuses on financial performance rather than the conversion process, and the length of trial periods offered is related to the trial structure but does not measure the effectiveness of converting that trial into revenue. Thus, option B accurately describes the focus of the trial-to-paid conversion rate.