Transforming Free Trial Uers to Paying Customers via Price Model Innovation
Equicty, a software company of horse stable ERP systems, noticed that there was room for improvement in terms of conversion ratio. There were a significant amount of free-trial users that did not continue to use the platform as paying customer.
Determine a new and optimized price model strategy to improve the conversation rate of free-trial users to paying customers.
Similar software was examined to assess the pricing models used in the horse industry, but also cross-industry pricing strategies were analysed. Together with our own knowledge on pricing strategies it was possible to create a detailed structure for a new and improved price model.
To find out the what a customer needs, it is important to really understand the customer. The best way to do this is to talk to the customer. By performing client and non-client interviews it becomes clear how the system can be optimised for each type of client, what it is they like about the platform, what they need in such a platform and what makes them use it. Thanks to the customer analysis it was possible to decide what features are essential and which are more premium features.
The structure created after the market research is combined with the feature selection of the customer analysis to create an optimal pricing model to improve conversion ratio and at the same time increase the overal revenue.