The Price of Free: building your Customer Experience around your price


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The internet extrapolated the concept of Freemium to the extreme. Two of the webs most successful organizations, Google and Facebook, both give away their proprietary product for free. The financial success of free App’s within Apple’s App Store has possibly been the ultimate demonstration the power of Free.
However, it isn’t just as simple as changing your pricing structure. Being ‘Free’ is more than just a pricing change. Customers don’t just look at the numbers when they make value decisions based on the price you set. If, perceptually, the difference between 99p and £1 is big, then the difference between 0p and 1p is even greater. Asking the customer to pay for a product, or even changing your price from 1p to 0p completely changes the expected customer experience.
Jordan Julien over at Social Media Today has done a great job of highlighting this topic. Jordan has gone into even more detail on how Reputation, Belonging, Loyalty and Interaction are all affected by the issue of Free.
Do you give any products away for free? Have you any learnings from changing a products price? We’d love to hear from you in the comments.

Republished with author's permission from original post.

Colin Shaw
Colin is an original pioneer of Customer Experience. LinkedIn has recognized Colin as one of the ‘World's Top 150 Business Influencers’ Colin is an official LinkedIn "Top Voice", with over 280,000 followers & 80,000 subscribed to his newsletter 'Why Customers Buy'. Colin's consulting company Beyond Philosophy, was recognized by the Financial Times as ‘one of the leading consultancies’. Colin is the co-host of the highly successful Intuitive Customer podcast, which is rated in the top 2% of podcasts.


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