Having a freemium or similar business model can be a great way to structure out your revenue source. It is convenient for the users, and is flexible for you as a developer/vendor, as it gives you wiggle room in playing around with different offering packages.
However, sometimes the product reach may be great, experiencing plenty of downloads and user engagements, yet the conversion rates are dismal.
Although this issue cannot be fixed straight away with a simple hack (if you think you know such a hack, then you can probably become the next richest person), it is possible to set out on the right path by keeping in mind three simple principles when it comes to conducting your business practices. Let’s briefly discuss all three, and learn how you can start increasing your conversion rates today!
Principle 1: Offer What’s Needed by the User
This is by far the hardest principle to follow, as it requires a shift of mindset. As developers/creators of the product, it is easy to fall into the trap of thinking that we know what the user needs. Even though in some exceptional cases such vision turns out to be true, it is applicable to a limited amount of great innovations, and not every product will fall under that category.
That’s why it is important to dive deeply into the user’s side. How do they interact with the product? What do they use the product for? Why would they go to you, instead of your competitors?
Every potential user can only be converted to the user if your product either solves their problem, or matches their taste and personality. By gaining a deep understanding of them, you will be able to narrow down the feature set to a small list of essentials, and focus on making them great.
Principle 2: Educate your user how to use your product
Let’s say you nailed down the first principle. You have outlined the essential feature set, and brought it to a top level. What’s next?
Now comes the crucial time of making sure your user is aware of how powerful your product is for them. It is important to educate your users on what you are offering them, and how they can take advantage of it.
An important fundamental of this principle is to educate the users in a seamless and direct manner. If you expect your customer to spend hours going through documentation on your website, then you will lose all competitive edge to someone who educates their users in a more convenient way.
With this issue, HelloApp Studio can prove to be the great tool for doing so! Don’t believe? You can check how easy and quick it is to create an innovative tour guide and start educating users.
After all, why should the user invest much more time and effort into learning a product, if they can solve their problem easier with an alternative? This is simply not the way to succeed with increasing your conversion rates.
Principle 3: Provide more value
Simple, yet abstract and confusing.
Do not fall into the trap of offering cheaper and cheaper prices, thinking that it will seal the deal. Instead, focus on offering a more holistic, quality, free value package.
Start with something simple, like a blog or a youtube channel. Always be helpful when handling user feedback and requests. Little things, when done consistently over time will add up to building up your brand’s credibility in the eyes of your customers.
Having a strong relationship and trust of your customers will lead to organic marketing, as word about good businesses spreads fast on the industry relevant forums and networks. Moreover, customers will be more inclined to pay a premium or try out a new product, simply because they trust your brand and are grateful for all the previous free value.
However, do not think that making a few posts will do the trick. With how saturated the market is, customers are very perceptive of when someone does something simply for the bottom line, and when someone truly cares about them.
Increasing conversion rates is the ultimate goal for most businesses, as it unlocks opportunities to develop greater products and bring more value to the community. It is a challenging goal. Keeping the discussed three principles in mind when running your business, will definitely help you stay on the right path.
Do you have any other principles in mind? If so, let us know so we can spread the word about it too! Additionally, feel free to check out our blogs on the main site, or any of the videos on our Youtube channel.