Should customer's first time using our service be free or just discounted?
My company does personal clothes shopping for users with same day delivery. We've launched and are looking to acquire more customers. We're currently charging $10 for the service per use.
I'd love your thoughts and advice on providing the service for free for first time users vs providing the service for a discounted price in attempts to acquire more customers.
Hard to define a fineline. @khemet
It depends if the problem is big enough that makes your customer feel the pain, "yes I need this NOW". Whether it's yes or no, you need a deeper research to see if you should increase of decrease the price or even free.
Some mattress companies managed to offer 100+ days free trial and still making millions profit. It is all about your capacity, service level and how you capture customers at scale.
My silly side project made 0 profit in the first 3 months. Totally red ocean, non-tech and nothing fancy. But I enjoyed doing what I do, keep putting up niche content on social media, eventually supporting my coffee fund now.
You need to measure how fast you can turn your free customers into paid. To achieve this point, a larger customer based would be helpful.
Thanks for sharing! I'm going to start running ads for the paid service and iterate from there based on the response I get.
No single answer, need to weigh up cost, friction and value.
If your service costs you money to deliver, charge ASAP or you fail.
If the friction to signup is large, a few carefully considered freebies can get valuable feedback, but over the top and you devalue the service.
If the value of using your service is large, get them paying ASAP, if you can't there are hidden fundamental issues.
My latest product have offered one user free (since means my lead developer becomes a real user and tester), but others we are charging from the start since affordable and high value.
This actually makes a lot of sense. Thanks for the feedback!
When you have a free trial you're taking on an increased support burden and gaining no revenue unless the customer sticks around. In exchange, you get more people trying your service.
If your company can handle it financially it's worth a try.
Yep you’re right. We’re going to stick with our paid offering and if it’s something people don’t want to pay for, that’s a sign to us