Converting Free Users to Paid Users - Fowa Miami 2009

On Converting Free Users to Paid Users Kevin Hale Future of Web Apps · Miami · Feb 23, 2009

particletree.com

treehousemagazine.com

wufoo.com

150,000+ 1.3 million+ 2 million 15 million

Individuals, Developers, Designers, Non-Profits, Teachers, Students, Universities, Research, Real Estate, Marketing, Healthcare, Banks, SMBs

Why are you here?

Freeloaders

Overcoming the Power of Zero

Interest No Alternative Urgency Convenience Peer Pressure Novelty Status

What about software?

When copies are free, you need to sell things which cannot be copied.

What can’t be copied?

Immediacy Personalization Interpretation Authenticity Accessibility Embodiment Patronage Findability

Maximizers vs Satisficers

Best Price Best Product Best Overall Solution

Excercise 1

Immediacy Personalization Interpretation Authenticity Accessibility Embodiment Patronage Findability

You make what you measure.

Point Point

End Start

Log = Action + Timestamp

Action Timestamp Referrer IP Address Cookie / Session Server Data Client Data

Views Clicks Submits Keystrokes

Positive / Negative Likert Scale Ratings Multiple Choice Open Feedback

The Ultimate Question

google.com/analytics/

web.analytics.yahoo.com

omniture.com

haveamint.com

crazyegg.com

clicktale.com

wufoo.com

surveymonkey.com

formassembly.com

dabbledb.com

google.com/talk/ service/badge/New

Excercise 2

Your Economic Engine

Benchmarks

Web App Autopsy SXSW 2007

PHP 6 months to launch Launched : July 2006 3 Employees

Ruby on Rails 3 months to launch Launched : July 2005 6 Employees

Java 5 months to launch Launched : February 2004 ~30 Employees

regonline .NET 3 years to launch Launched : 1996 50 Employees

Conversion per 100 Visits Free Paid 7.00% 1.00% 11.00% 1.00% 8.00% N/A regonline 1.52% 1.14%

Shareware 0.5%

Dropsend 1% - 2%

Casual Download Games 2%

Other Freemium Services Range from 1.5% to 5% Average Overall less than 3%

Ning 3%

Flickr 5-10%

AdultFriendFinder 10% - 22%

Habbo : 10% of players Club Penguin : 25% of uniques Runescape : 16.6% of uniques Puzzle Pirates : 22% of players

Top 10

TurboTax Online 70%

Things to Keep in Mind

Seasonal Effects

Best Worst Mar Dec Jan Dec Jan/Feb Dec regonline Sept Dec

Early Adopter Frugal Factor

7,000 invitations sent to potential Beta Testers. Only 3,500 created an account. Only 50 of them became customers (and we o ered them half o ).

Moving the Needle

The Funnel

Reduce Friction

Number of Steps

Label Placement

Multiple Columns

Excercise 3

Increase Awareness

Excercise 4

On Promotion Codes

Successful Changes

regonline Powered By Logo 339% increase in click through Video Spokesperson 11% increase in registrations Why Register Online? 6% increase in registrations

Customer Lifetime Value

Customer Referral Value

The Original

The Winner

Excercise 5

Off the Funnel

Best Price Best Product Best Overall Solution

Relationships as a Metaphor

Intimacy Passion Commitment

Nonlove Liking Infatuated love Empty love Romantic love Companionate love Fatuous love Consumate Love

Intimacy Passion Commitment

Existing Users :: Marriage

Dr. John Gottman

Everyone fights.

Money Cost / Billing Kids Users’ Users Sex Performance Time Roadmap Others Others

How it’s done.

When Things Go Wrong

Enlightened Hospitality

Importance of Fun

Keeping the Romance Alive

Bibliography

Questions?

Thanks!

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Converting Free Users to Paid Users - Fowa Miami 2009

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