This article describes the intense psychological effects, which giving away free products can have on your customers. It also describes how you put those effects to good use. Please retweet if you like it!

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Written by businessavante
4720 days ago

Hi Simon.

The rub is that for #3, the paying customers know they're subsidizing the non-paying customers. It might adversely effect customer loyalty - when the regulars resent it.

Duncan



Written by Simon Oeltzschner
4720 days ago

Hi Duncan,

You make a good point. However, I believe that even if the regular customers are aware of the fact that they are subsidizing the non-paying customers, the effects of freemium and potentially also altruism outweigh the resentment of the regulars. Like the study in the article showed, as humans our decisions are not always completely rational.

Simon



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Share your small business tips with the community!
Share your small business tips with the community!
Share your small business tips with the community!