The Homa Files

Excerpted from Warrillow & Co., “Nothing good in life is free? 65% of small business owners disagree”

In 2002,  small business owners were significantly more interested in discounts for new products, with rewards and free trials competing for distant second and third positions. In a growing economy, like that of 2002, the free trial wasn’t worth the effort for most small business owners. Trial campaigns in strong economic conditions generate reasonable uptake, but generally result in poor conversion to the fee product or service and a lower quality customer over the lifetime of the account.

A 2008 survey … yielded the exact opposite set of preferences from small business owners:

Free trials are now preferred by far over discounts, with rewards dropping to the last position. In the current economy, … free offers are much more broadly applicable and appealing to the average business owner.

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Three recommendations to most effectively utilize free trial offers:

1. Prove your superior service: Free trials get you in the door … high quality service remains the key factor in customers. Sell your company as a whole, in addition to … specific products.
2. Provide an in-trial assessment: All too often, engagement with the customer during the trial period focuses exclusively on upgrading to a fee product. Create proactive and customized usage analysis … prior to the end of the trial that gives a reasonably unbiased assessment of the product fit for the customer … and recommendations for getting more out of the remaining trial time.
3. Don’t abandon targeting: Creating a free version doesn’t automatically make your product or service more applicable to business owners outside your target market. Steer clear of blanket offers and focus your efforts on the customers for whom your products have the best fit.

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Full article:
http://www.warrillow.com/weeklyNews.aspx

Thanks to Straz (FOK) for the head’s-up

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