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When Free Isn't Free Enough - Transitioning from Free to Freemium in the Consumer Space

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Ryan Holmes Presentation

  1. 1. Going Freemium Tactics and Lessons (in Progress)
  2. 2. Social Media Dashboard Broadcast, monitor & share froma single web tool
  3. 3. What Did We Do? Preparation 1. Customer Survey 2. Metrics Analysis 3. Research Migrations 4. Pricing Options 5. Cohort Roll-out
  4. 4. Customer Survey Questions How people used the product What features are they willing to pay for How much are they willing to pay
  5. 5. Metrics Analysis RJ Metrics Slice & dice database to see how users were *really* using HootSuite Make decision from data rather than hunches
  6. 6. Migration Research Findings User communication is critical Not necessarily easy (always be haterz) Slow and steady FTW Keep expectations in check
  7. 7. Pricing Models Options Considered 1.Charge per monitored term: keyword, search, tabs 2.2. Buckets of features – catering to different types of users at different price points 3. Charge per Team Member
  8. 8. Cohort Launch Roll Out Only new users had to choose between a free/paid plan User experience unchanged for older users Analyze price points & adjust
  9. 9. Cohort Trials Tested each for ~1 month > Iteration I - Tiers Multiple buckets of features with pre- determined number of Team Members allowed Iteration II - A la carte Add features needed for monthly fee, e.g: enhanced support/vanity URLs/additional TMs, etc. Findings...
  10. 10. Cohort Results A la Carte Results 80% increase Pro signups 15% increase free accounts Why? •A la Carte was simpler solution for most users •More flexibility for SMEsUsers needed more Team Members than were available in tiered model
  11. 11. Enterprise Plans Big Business Special tier for large business and orgs Unlimited social profiles, plus more Team Members & Learning program Differentiate with VIP service & new features i.e. Facebook Insights
  12. 12. Mobile Options Platform Tie-in At first, charged for full & offered free (limited) Migrated to free on 5 platforms – ex: 1st day 12K iPhone downloads Aim: Tightly couple web and mobile to encourage Pro sign-ups (success TBD)
  13. 13. Promoted Content Another Stream Twitter Promoted Content provides additional source with revenue share First 3rd party syndication partner Promoted Tweets Promoted Trends Etc.
  14. 14. Looking Back Communicate: Early & Often Learn: Analytics vs Hunches Payment: AMEX, JCB, Paypal Cohorts + a/b: Let us test before diving in Gradual roll-out: system tune- ups, bugs
  15. 15. Thanks from@hootsuite Ryan Holmes - twitter.com/invoker ++ Help Desk - help.hootsuite.com Feature Requests - feedback.hootsuite.com Learning University - learn.hootsuite.com Twitter @hootsuite @hootsuite_help @hootsuiteiphone @hootwatch
  • Kateleg

    Oct. 29, 2010
  • octavdruta

    Oct. 28, 2010

When Free Isn't Free Enough - Transitioning from Free to Freemium in the Consumer Space

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