D
Deleted member 15865
Guest
I am trying to understand through this episode the decision making psychology of potential subscribers when it comes to trying out a service.
Tidal always had a 30 days free trial. But the limited period ‘$4 for 4 months’ (reduced rate) trial offer is gaining a large traction among the FMs.
Now I analyse this as follows:
A) Assumption: 30 days is usually sufficient to evaluate the service and decide on taking regular subscription. It’s not as if one needs 4 months to make this decision.
B) It cannot be proven that $4 for 4 months is cheaper than $0 for 30 days. Mathematically, the former is costlier than the latter.
So, theoretically A and B put together should have had more potential subscribers availing the 30 days free trial than the $4 for four months trial. But reality is the opposite.
The possible reason to explain this divergence of reality from theory as I see it lies in the ‘limited period’ validity of this offer.
The 30 days free trial was always eternally available, it wasn’t for a limited period. So, even if potential subscribers were considering it, most did not act upon it. There was no ‘sense of urgency’. And as we know, change seldom happens without a sense of urgency.
But with the $4 for four months offer being only for a limited period (at least that’s the perception on the forum), it has created a sense of urgency in those who were considering trying it out. And they are taking up on it.
Therefore, it makes marketers sense to introduce limited period offers from time to time. The whole ‘seasonal sale’ is based on the same principle. But here we are talking of subscription to a service and not outright product purchase. Yet, the psychology works similarly.
Note: The intention is not to value judge. It’s only to analyse and understand a phenomenon.
Tidal always had a 30 days free trial. But the limited period ‘$4 for 4 months’ (reduced rate) trial offer is gaining a large traction among the FMs.
Now I analyse this as follows:
A) Assumption: 30 days is usually sufficient to evaluate the service and decide on taking regular subscription. It’s not as if one needs 4 months to make this decision.
B) It cannot be proven that $4 for 4 months is cheaper than $0 for 30 days. Mathematically, the former is costlier than the latter.
So, theoretically A and B put together should have had more potential subscribers availing the 30 days free trial than the $4 for four months trial. But reality is the opposite.
The possible reason to explain this divergence of reality from theory as I see it lies in the ‘limited period’ validity of this offer.
The 30 days free trial was always eternally available, it wasn’t for a limited period. So, even if potential subscribers were considering it, most did not act upon it. There was no ‘sense of urgency’. And as we know, change seldom happens without a sense of urgency.
But with the $4 for four months offer being only for a limited period (at least that’s the perception on the forum), it has created a sense of urgency in those who were considering trying it out. And they are taking up on it.
Therefore, it makes marketers sense to introduce limited period offers from time to time. The whole ‘seasonal sale’ is based on the same principle. But here we are talking of subscription to a service and not outright product purchase. Yet, the psychology works similarly.
Note: The intention is not to value judge. It’s only to analyse and understand a phenomenon.
Last edited by a moderator: