🎓 How to boost revenue with free samples
🎓 How to boost revenue with free samplesHigh-quality free samples boost demand and allow you to increase prices and revenue (by 7.7% in this analysis). Make sure to limit their usage, or their effect backfires.New to Ariyh? Join 6,137 evidence-based marketers for 3min tips 💡 based on research 🎓 to grow your business 📈 If you find these tips useful please share them with your colleagues and friends, Ariyh grows thanks to you! Today’s tip is brought to you by… Attest Do you know who your customers are? What they think about your products, your brand? Attest helps you answer those questions. Make great decisions with fast, accurate, and actionable insights. 📝 IntroFree samples are powerful - whether for a book, a video, or a platform (as a free trial or freemium). When used well, they’re a powerful driver of conversions (and usually, satisfaction too, since customers know what to expect). But when designed badly, they can be either ineffective or - worse - cannibalize the paid product (i.e. when the free sample is ‘enough’). So let’s take a look at the optimal way to design free samples for a digital product or content. P.S.: You could also call a free sample ‘try it for $0’ instead, which could increase trials. P.P.S.: The conclusions of this research are similar to those of a study covered in Ariyh’s tip #5, almost 10 months ago. In that study, MIT researchers analyzed the New York Times’s digital paywall and had similar findings. Want to sponsor Ariyh? Here’s all you need to know. Previous tip: Which review you should show first (All tips here) Provide limited, high-quality free samples for in-demand products to boost revenueImpacted metrics: Customer spending | Customer acquisition 📈 RecommendationFor top-selling and top-rated digital products (e.g. in-demand TV series, a platform like Dropbox), provide free samples at a quality that is as close as possible to the full product. Limit the free sample’s quantity (e.g. the first episode free at full quality, full features but limited storage, 10 days free trial). If there is no way to limit the product’s usage or the product is low-quality or in low demand, offer low-quality samples (e.g. low-quality and delayed streaming of a football match). Free samples generate more demand and allow you to increase the prices of high-quality products. 🎓 Effects
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✋ Limitations
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⚡ Steps to implement
🔍 Study typeField experiment (of 540 books on the National Academies Press website for 8 weeks in 2014). United States 📖 ResearchLi, H., Jain, S., & Kannan, P. K. (April 2019). Optimal design of free samples for digital products and services. Journal of Marketing Research. 🏫 AffiliationsFisher College of Business, The Ohio State University; Naveen Jindal School of Management, University of Texas at Dallas; and Robert H. Smith School of Business, University of Maryland. United States Remember: This research could be disproven in the future (although this is rare). It also may not be generalizable to your situation. If it’s a risky change, always test it on a small scale before rolling it out widely. Rate today’s tip to help me make Ariyh's next tips 🎓 even more useful 📈 How was today’s tip? Want to sponsor Ariyh or ask a question? -> Reach out at thomas@ariyh.com New to Ariyh? -> Subscribe below or read other 3min marketing tips here |
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🎓 Sales activity incentives
Saturday, July 10, 2021
Giving sales team incentives based on activity targets (eg calls made, demos given) - and not only commissions on sales results - boosted sales by 6-9%.
🎓 The rule of three in persuasion
Saturday, July 10, 2021
To be most persuasive, use 3 positive claims at once in your message (eg ad, presentation). They are sufficient to show a pattern, but not enough to make people skeptical.
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