Introduction

Most free users churn before they ever think about paying. This guide shows how to find and fix the friction that drives them away.

What's the problem it solves?

Many SaaS teams assume low conversion means they need more features or better marketing. In truth, users often quit early because of confusing onboarding, unclear value, or early paywalls. The article gives a step-by-step way to uncover where and why this happens.

Quick Summary

The free experience is often where retention problems begin. Users don’t leave because they dislike your paid product; they leave because they never reach its value. Jon MacDonald’s five-step audit helps SaaS leaders find those hidden friction points.

It starts with data: use analytics to find where users drop off, which features they use, and how long it takes to reach value. Then talk to real users-both those who stayed and those who left-to understand what they were trying to do and where they got lost.

Next, study how competitors handle their free tiers. This gives you context about what users expect. Then use “verb scoring,” a method that evaluates every action users can take in your app and how restricted each one is. Finally, bring all the data together-drop-offs, user feedback, market research, and verb scores-to spot where friction is too high, where value leaks out, and what to fix first.

Running this audit isn’t quick, but it turns guesswork into a clear roadmap for improving activation and retention. The result is fewer drop-offs, smoother user journeys, and stronger conversion rates.

Key Takeaways

• Conversion problems usually start early, not at the paywall.
• You need both data and user interviews to find the real causes of churn.
• Competitor analysis shows what users already expect from free tools.
• Verb scoring helps visualize friction and inconsistency in your product.
• Fixing top friction points often improves activation and retention quickly.

What to do

• Review analytics for user drop-offs and engagement trends.
• Interview both active and churned users to understand their journeys.
• Document how competitors structure their free experiences.
• Run a verb scoring exercise to assess friction across product actions.
• Combine all insights into a single roadmap that prioritizes fixes by impact and effort.
• Re-test after changes to measure improvements in activation and retention.

‍