Beyond Free: ...what is the customer’s perception of “free”?
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Transcript of Beyond Free: ...what is the customer’s perception of “free”?
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Beyond Free ...what is the customer’s perception of “free”?
Priya Prakash | Creative Director Consumer Experience, Nokia
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What this talk is about.. •What is the customer’s perception of value?
•What is free and what’s not?
•Can paying for a service actually enhance the users' perception of the experience?
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What this talk is not about.. • usability• better & more features• cheap / low-cost / everything’s free• advertising is evil
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my experiencearound... various biz models
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tools
conversations
business models
experiences
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tools
conversations
business models
experiences
pre-paid
ad-funded
direct sales & lead generation
freemium (VAS) & ad-
funded
device sales & services
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what is customer’s perception of value?
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...image?
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...value?
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...satisfaction?
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insight 1: The value perceived is how you create the story- “The consume model” in the mind of the user
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...each handset is perceived having a different value
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...using lifestyle & customisation to create value
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what is more valuable?access vs ownership
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what is free & not free?
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what is not free...what is finite
time & attention
effort
status
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insight 2: To get users to upgrade, identify activities involving time, status and effort.
• Demonstrate clear benefits missing in the free version.
• Design seamless calls to actions to get users to convert.
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time
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The funnel..
Pay as you grow
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insight 3:Distraction based advertising on mobile could work only if the user’s context is clearly supported.
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Derived from: Flow interactive
Free?
£ 0.90 ad-funded
Sky+ monthly subscription
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media usage over time
med
ia
? ? ???
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insight 4: Seamless user experiences create sustained revenues.
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Slide ref: http://www.slideshare.net/froberg/meet-freemium-presentation
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The App Store
...we’ve come to the conclusion that a very poor app earns only a few hundred a month. The average and above average apps can earn in the neighborhood of $1,000-10,000+ per month. The more viral, gimmicky, and higher quality apps can earn anywhere from $100,000 - 1,000,000+ over the course of their lifetime. “http://www.appvee.com/blog/2009/04/the-most-comprehensive-iphone-app-sales-figures/
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conclusion... To monetise the mobile user experience, you need a highly reactive business and service strategy.
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how?
think fashion! you need a platform that is flexible & timely to react to market needs & fulfill demands