When Free Isn't Free Enough - Transitioning from Free to Freemium in the Consumer Space

1. Going Freemium
Tactics and Lessons (in Progress)

2. Social Media Dashboard
Broadcast, monitor & share froma single web tool

3. What Did We Do?
Preparation
1. Customer Survey
2. Metrics Analysis
3. Research Migrations
4. Pricing Options
5. Cohort Roll-out

4. Customer Survey
Questions
How people used the
product
What features are
they willing to pay for
How much are they
willing to pay

5. Metrics Analysis
RJ Metrics
Slice & dice database to
see how users were
*really* using HootSuite
Make decision from data
rather than hunches

6. Migration Research
Findings
User communication is
critical
Not necessarily easy (always
be haterz)
Slow and steady FTW
Keep expectations in check

7. Pricing Models
Options Considered
1.Charge per monitored
term: keyword, search, tabs
2.2. Buckets of features –
catering to different types of
users at different price points
3. Charge per Team Member

8. Cohort Launch
Roll Out
Only new users had to
choose between a free/paid
plan
User experience unchanged
for older users
Analyze price points & adjust

9. Cohort Trials
Tested each for ~1 month >
Iteration I - Tiers
Multiple buckets of features with pre-
determined number of Team Members
allowed
Iteration II - A la carte
Add features needed for monthly fee, e.g:
enhanced support/vanity URLs/additional
TMs, etc.
Findings...

10. Cohort Results
A la Carte Results
80% increase Pro signups
15% increase free accounts
Why?
•A la Carte was simpler solution for
most users
•More flexibility for SMEsUsers needed
more Team Members than were
available in tiered model

11. Enterprise Plans
Big Business
Special tier for large
business and orgs
Unlimited social profiles,
plus more Team Members
& Learning program
Differentiate with VIP
service & new features i.e.
Facebook Insights

12. Mobile Options
Platform Tie-in
At first, charged for full
& offered free (limited)
Migrated to free on 5
platforms – ex: 1st day
12K iPhone downloads
Aim: Tightly couple
web and mobile to
encourage Pro sign-ups
(success TBD)

13. Promoted Content
Another Stream
Twitter Promoted Content
provides additional source
with revenue share
First 3rd party syndication
partner
Promoted Tweets
Promoted Trends
Etc.

14. Looking Back
Communicate: Early & Often
Learn: Analytics vs Hunches
Payment: AMEX, JCB, Paypal
Cohorts + a/b: Let us test before
diving in
Gradual roll-out: system tune-
ups, bugs

15. Thanks from@hootsuite
Ryan Holmes - twitter.com/invoker
++
Help Desk - help.hootsuite.com
Feature Requests - feedback.hootsuite.com
Learning University - learn.hootsuite.com
Twitter @hootsuite @hootsuite_help @hootsuiteiphone @hootwatch