Beyond Free ...what is the customer’s perception of “free”?

Priya Prakash | Creative Director Consumer Experience, Nokia

What this talk is about.. •What is the customer’s perception of value?

•What is free and what’s not?

•Can paying for a service actually enhance the users' perception of the experience?

What this talk is not about.. • usability• better & more features• cheap / low-cost / everything’s free• advertising is evil

my experiencearound... various biz models

tools

conversations

business models

experiences

tools

conversations

business models

experiences

pre-paid

ad-funded

direct sales & lead generation

freemium (VAS) & ad-

funded

device sales & services

what is customer’s perception of value?

...image?

...value?

...satisfaction?

insight 1: The value perceived is how you create the story- “The consume model” in the mind of the user

...each handset is perceived having a different value

...using lifestyle & customisation to create value

what is more valuable?access vs ownership

what is free & not free?

what is not free...what is finite

time & attention

effort

status

insight 2: To get users to upgrade, identify activities involving time, status and effort.

• Demonstrate clear benefits missing in the free version.

• Design seamless calls to actions to get users to convert.

time

The funnel..

Pay as you grow

insight 3:Distraction based advertising on mobile could work only if the user’s context is clearly supported.

Derived from: Flow interactive

Free?

£ 0.90 ad-funded

Sky+ monthly subscription

media usage over time

med

ia

? ? ???

insight 4: Seamless user experiences create sustained revenues.

Slide ref: http://www.slideshare.net/froberg/meet-freemium-presentation

The App Store

...we’ve come to the conclusion that a very poor app earns only a few hundred a month. The average and above average apps can earn in the neighborhood of $1,000-10,000+ per month. The more viral, gimmicky, and higher quality apps can earn anywhere from $100,000 - 1,000,000+ over the course of their lifetime. “http://www.appvee.com/blog/2009/04/the-most-comprehensive-iphone-app-sales-figures/

conclusion... To monetise the mobile user experience, you need a highly reactive business and service strategy.

how?

think fashion! you need a platform that is flexible & timely to react to market needs & fulfill demands

thank you :)questions?

priya.prakash@nokia.com