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How to Change Free Users Into Paying Customers - Kevin Hale
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How to Change Free Users Into Paying Customers - Kevin Hale

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Take a look at Kevin Hale's slides from FOWA Miami 2010. Kevin discusses how creating profitable and successful Web apps is getting more and more difficult. In this workshop, Kevin has shared some …

Take a look at Kevin Hale's slides from FOWA Miami 2010. Kevin discusses how creating profitable and successful Web apps is getting more and more difficult. In this workshop, Kevin has shared some sure-fire tips for converting your users from free to paying customers.

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  • Great Presentation .. thanks... it is really helpful for us.
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Transcript

  • 1. How to Convert Free Users to Paid Users Kevin Hale
  • 2. particletree.com
  • 3. wufoo.com
  • 4. Freeloaders
  • 5. Exercise 1
  • 6. Visit Try Buy
  • 7. 100% Web site visitors 10% Sign Up to Trial 1% Paying Users
  • 8. 100% Website Visitors 10% Signup to Trial 9% Login to Account 5% Active Users 1% Paying Users .5% Staying Users
  • 9. 100% Website Visitors 10% Signup to Trial 9% Login to Account 5% Active Users 1% Paying Users .5% Staying Users
  • 10. Increase Awareness Reduce Friction Preserve Momentum
  • 11. 100% Website Visitors 10% Signup to Trial 9% Login to Account 5% Active Users 1% Paying Users .5% Staying Users
  • 12. Blackhole of Irrationality
  • 13. $0.15 $0.01 73% 27%
  • 14. $0.14 FREE! 31% 69%
  • 15. Overcoming the Power of Zero
  • 16. Interest No Alternative Urgency Convenience Peer Pressure Novelty Status
  • 17. What about software?
  • 18. When copies are free, you need to sell things which cannot be copied.
  • 19. What can’t be copied?
  • 20. Trust
  • 21. Immediacy Personalization Interpretation Authenticity Accessibility Embodiment Patronage Findability
  • 22. Exercise 2
  • 23. Immediacy Interest Personalization No Alternative Interpretation Urgency Trust Authenticity Convenience Accessibility Peer Pressure Embodiment Novelty Patronage Status Findability
  • 24. Showing Off Features
  • 25. Quick Notes on Pricing
  • 26. One Fixed Price vs Tiered Pricing
  • 27. Direction of Pricing
  • 28. Features. Features. Features.
  • 29. Dissect Conversion
  • 30. AIDAS
  • 31. Attention Interest Desire Action Satisfaction
  • 32. Attention Interest Desire Action Satisfaction
  • 33. Focus on Emotions Not Intellect
  • 34. Maximizers vs Satisficers
  • 35. Momentum
  • 36. Exercise 3
  • 37. Most conversions happen inside.
  • 38. Exercise 4
  • 39. You make what you measure.
  • 40. Point Point
  • 41. End Start
  • 42. Count
  • 43. Log = Action + Timestamp
  • 44. Action Timestamp Referrer IP Address Cookie / Session Server Data Client Data
  • 45. Views Clicks Submits Keystrokes
  • 46. Positive / Negative Likert Scale Ratings Multiple Choice Open Feedback
  • 47. The Ultimate Question
  • 48. Your Economic Engine
  • 49. Tools
  • 50. google.com/analytics/
  • 51. web.analytics.yahoo.com
  • 52. omniture.com
  • 53. MixPanel
  • 54. haveamint.com
  • 55. crazyegg.com
  • 56. clicktale.com
  • 57. wufoo.com
  • 58. formspring.com
  • 59. surveymonkey.com
  • 60. dabbledb.com
  • 61. google.com/talk/ service/badge/New
  • 62. olark.com
  • 63. sitewit.com
  • 64. Exercise 5
  • 65. Benchmarks
  • 66. Web App Autopsy SXSW 2007
  • 67. PHP 6 months to launch Launched : July 2006 3 Employees
  • 68. Ruby on Rails 3 months to launch Launched : July 2005 6 Employees
  • 69. Java 5 months to launch Launched : February 2004 ~30 Employees
  • 70. regonline .NET 3 years to launch Launched : 1996 50 Employees
  • 71. Conversion per 100 Visits Free Paid 7.00% 1.00% 11.00% 1.00% 8.00% N/A regonline 1.52% 1.14%
  • 72. Shareware 0.5%
  • 73. Dropsend 1% - 2%
  • 74. Casual Download Games 2%
  • 75. Other Freemium Services Range from 1.5% to 5% Average Overall less than 3%
  • 76. Ning 3%
  • 77. Flickr 5-10%
  • 78. AdultFriendFinder 10% - 22%
  • 79. Habbo : 10% of players Club Penguin : 25% of uniques Runescape : 16.6% of uniques Puzzle Pirates : 22% of players
  • 80. Top 10
  • 81. TurboTax Online 70%
  • 82. Things to Keep in Mind
  • 83. Seasonality
  • 84. Best Worst Mar Dec Jan Dec Jan/Feb Dec regonline Sept Dec
  • 85. Early Adopter Frugal Factor
  • 86. 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 ).
  • 87. On Promotion Codes
  • 88. How do we move the needle?
  • 89. Tests
  • 90. Sequential Testing
  • 91. A/B Testing
  • 92. Multivariate Testing
  • 93. Confidence Bars
  • 94. A A
  • 95. 95% 100 20% 1,000 6.3% 10,000 2% 100,000 0.63%
  • 96. Successful Changes
  • 97. The Original
  • 98. The Winner
  • 99. regonline Powered By Logo 339% increase in click through Video Spokesperson 11% increase in registrations Why Register Online? 6% increase in registrations
  • 100. Customer Lifetime Value
  • 101. Customer Referral Value
  • 102. Exercise 6
  • 103. Off the Funnel
  • 104. Before Launch: 100% development After Launch: 33% dev, 33% bug fix 33% customer support
  • 105. Best Price Best Product Best Overall Solution
  • 106. +300,000 users 3.5 million people ~300 issues +600 emails 7 -12 minutes
  • 107. Daily Support 400 Saturday Friday Thursday Wednesday 300 Tuesday Monday Sunday 200 100 0 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 42 44 46 48 50 52 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 42 44 46 48 50 52 2 4 6 2008 2009 2010 Weekly Totals 400 300 200 100 0 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 42 44 46 48 50 52 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 42 44 46 48 50 52 2 4 6
  • 108. We are fanatical about creating meaningful relationships with our users.
  • 109. New Users :: Dating Existing Users :: Marriage
  • 110. New Users :: Dating
  • 111. Homepage Landing Pages Plans / Pricing Login Signup
  • 112. First Email Account Creation Blank / Starting Interface Login Link Ad Link First Support
  • 113. Existing Users :: Marriage
  • 114. Dr. John Gottman
  • 115. Everyone fights.
  • 116. Money Cost / Billing Kids Users’ Users Sex Performance Time Roadmap Others Others
  • 117. 100% Website Visitors 10% Signup to Trial 9% Login to Account 5% Active Users 1% Paying Users .8% Staying Users
  • 118. 100% Website Visitors 10% Signup to Trial 9% Login to Account 5% Active Users 1% Paying Users .8% Staying Users
  • 119. Enlightened Hospitality
  • 120. Importance of Fun
  • 121. Keeping the Romance Alive
  • 122. Bibliography
  • 123. Questions?
  • 124. Thanks!

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