Quote:
Originally posted by Jeremy@Jun 15 2005, 04:01 AM
I think you've just contradicted your earlier post Steve! :-))
I read your earlier post as saying that as long as the surfer has a cc then the price points of a low cost trial have relatively little effect on conversions.
If the monthly price has a big effect on conversions (what's the point of the trial then), then how does it affect the retention?
I seem to remember that back in the late 90s most of the proggies found that increasing the monthly price had relatively little effect on sales & retention. But I could be well wide of the mark.
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Hmm, I think I was just trying to make the point that in any other business this would be a funny conversation... only in this business do you have to argue that its easier to sell something for 53% less!
But the real point is,why bother offering Case 2 at all because it generates so much less revenue (given a consistent trial-full ratio), could the conversion rate really be THAT much higher to make up for the lost revenue? I stick by my earlier point of trial prices having a small effect on conversions and support the idea that the monthly price has little effect on retention.