Evolution: The Interdependence between Innovation of Entrepreneurship with Experience of Establishment
Citing a myriad of reasons why, many people and companies would choose experience and resources over freedom of choice. Others, like entrepreneurs prefer freedom of choice over experience and infrastructure.
Freedom of choice enables capitalizing on passion without limits...
So you got them to click on the big green free button – congrats! Home free right? Not quite. They don’t depend on your offering yet. Without dependency, why would they pay? Here the real work begins….getting them to USE the tool.
Regardless of the digital service you offer, whether it is an app, software or any other digital offering, they are all built around the same value proposition – convenience:
Free. Although a motivator for a variety of different types of sales, for the purpose of this article, we will focus on the low-cost, consumer, digital service space (apps, Software as a Service {SaaS}, website service offerings, etc).
When any business offers anything for "free", it consciously makes a choice to forego immediate revenue in exchange for two things:
1) A higher conversion rate on acceptance/adoption
2) A plan to monetize long-term that requires a certain adoption and/or engagement level for success
Consumer decision making is easily understood at a high level with a simple equation:
We are all consumers. Whether we consume products, services, or content, at some point, we all consume. Our method of consumption might change over time, but the reality is, consumption never ends. Consumption does have a limit – money. Yes, our resources (money), not our desire, limits consumption.
When faced with limitation, how do we choose? Cost, perceived value, desire, and enjoyment level are the most common factors. However, when "free" is involved, this can reduce the impact of these factors. Free enables fulfillment of consumption without limitation or rather without a perceived cost.
The key factors that generate effective change in customer service:
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