It is good for companies too, because they can aquire clients which are doubting whether they need their services or should they choose this particular service provider. A part of trial users will convert to paying customers and company can communicate with trial users during the free trial period and after it to improve conversion rate.
But from my own customer experience I've spotted some things I want to share with you. I think my experience is not unique and the same customer journey have many of your potential customers.
Recently I've googled case studies about a/b- and multivariant testing. Via one of blog posts I've found an interesting service provider. Like many competing services he offers a 30 Day Free Trial.
After reading descriptions of features of this service on the company's website I've realized that I'd like (probably like many of you) to explore interfaces of all features in customer's area and try it in the feature for my startup.
But here comes the problem. My startup will launch only in July 2012, so before this date I will not able to try this product "in battle". But I wished to explore the interface of this service at the end of April to be sure whether it is as good as I imagine after reading descriptions of its features.
So, if I sign up for free trial right now, I will be able to explore interfaces of all features, but will not able to try service in battle. But if I will not sign up for free trial until my startup launch, it is a great possibility that in July I will not remember URL of this service (or will not remember that I've bookmarked it) and, as a result, will make a new search and choose another service provider. This company almost converted me from website visitor to free trial user, but may be lost me as potential paying customer forever because doesn't studied customer journey and doesn't understand that between customer's site's visit and customer's need of service can be relative large period of time.
Thus it can be smart to offer your customers a free trial period, but ask them whether they want to try your services right now or they want to look at your features right now but try its later (you can ask when, if you like). So you will not loose your potential clients, will have the possibility to communicate with them via e-mail and your clients will be able to try your services "in battle", see it is useful for them or their business and will more likely to convert to paying customers.
What do you think about it?