The worst users come from referral programs, free trials, coupons
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Re: The worst users come from referral programs, free trials, coupons
#2Anecdotally makes sense.
Coupons attract scarcity mindset people. If your product targets more time poor money rich growth mindset people, this is a bad fit.
My wife has a friend that did every Groupon known to man. She routinely signs up for gyms that have a 30 day special then quits. She says she wants to get in shape but can’t get over her own scarcity mindset to just pay for a regular gym continuously.
Re: The worst users come from referral programs, free trials, coupons
#3Eh, YMMV.
There are innumerable stories of SaaS companies succeeding with referrals and free trials. And coupons + referrals have been the lifeblood of retail ecommerce for ages.
All of these are a function of what you put into them though. Poorly run referral / free trial / coupon programs cannot be expected to yield optimal results or ideal customers.
Re: The worst users come from referral programs, free trials, coupons
#4I've seen similar outcomes where free users required more support than paid.
Re: The worst users come from referral programs, free trials, coupons
#5I sort of expected something more insightful.
This general topic was discussed quite a bit when Groupon was a thing. The coupons brought in people who were pretty much only there for the discount, tipped poorly, and generally didn't become repeat customers. They weren't looking for a new place. They were looking for a deal.
ADDED: Per another comment, there is probably an angle whereby a free trial is the necessary nudge for someone to try something they'd be willing to pay full price for if they liked it. But I didn't get that distinction between those two modes from this short piece.
Re: The worst users come from referral programs, free trials, coupons
#6Recent example, a piece of furniture costing over £3k and I can get 10% off if I sign-up to their newsletter.
As someone who works in retail marketing, this is a guaranteed way to ensure I don't spend a penny in your store.
Re: The worst users come from referral programs, free trials, coupons
#7> Incentive programs often don’t perform
should be "incentive programs have a lower conversion rate".
> less qualified (users) ... will use your app
Thats a good thing, and their negative interactions with the app can be measured to improve the experience for other non-technical users.
if gamification doesnt work, explain the popularity of the gacha games. Sure it may attract users who enjoy easy dopamine which is kinda dystopian, but apps need to make money, thats that reality app developers end up facing.
Re: The worst users come from referral programs, free trials, coupons
#8Eh, YMMV. There are innumerable stories of SaaS companies succeeding with referrals and free trials. And coupons + referrals have been the lifeblood of retail ecommerce for ages. All of these are a function of what you put into them though. Poorly run referral / free trial / coupon programs cannot be expected to yield optimal results or ideal customers.
Free trials in that context makes some sense. I don't want to pay you sight unseen. I'm not really looking for a discount. I just want to evaluate something at no cost other than my time (which isn't nothing).
Re: The worst users come from referral programs, free trials, coupons
#9I've seen similar outcomes where free users required more support than paid.
I once did a free gig for a neighbouring business, that was a lesson for me and not one I intend to repeat.
Re: The worst users come from referral programs, free trials, coupons
#10Anecdotally makes sense. Coupons attract scarcity mindset people. If your product targets more time poor money rich growth mindset people, this is a bad fit. My wife has a friend that did every Groupon known to man. She routinely signs up for gyms that have a 30 day special then quits. She says she wants to get in shape but can’t get over her own scarcity mindset to just pay for a regular gym continuously.
She says she wants to get in shape but actually she likes visiting new gyms. Nothing wrong with that, right?