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!
Why You Should Give Away Your Products for Free!
Posted by Simon Oeltzschner under Products and ServicesFrom http://www.planetbizbuzz.com 4720 days ago
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Comments
4720 days ago
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
4720 days ago
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