PRICE OF PROMOTION

02 Jul 2003

PRICE OF PROMOTION

The free trial (30 days) that we plan to offer is the price that we pay to promote our webservice.

But, we must, quantitatively, know what the exact price that we are paying is.

This is quite simple

During the 30 day trial period, each Company would carry - out some transactions of different types. We are already "counting" the "no. of transactions" of each type.

  

Then tabulate a SUMMARY

Price For Promotion

This summary table will tell us

·     Revenue loss due to free trial (individual Company wise & cumulative, as of any date)

·     Amount (of loss) "re coupled"/ "re - covered" thru company/ companies becoming regular subscribers, at the end of free trial.

It is also possible that the "Rupee Value of free trial usage", could throw some light on "Usage Patterns" of different companies.

(--- all free trial subscribers are quite unlikely to have the same/ similar/ identical patterns of usage of different transactions. Some may do more "conversions" but less "searches" whereas some others may have exactly opposite pattern of usage. Such analysis will be very useful.

From individual/ collective "usage patterns" (transaction - wise), during free trial period we may be able to extrapolate / predict, future "usage - patterns", statistically.

Any "Prediction" based on a more 30 day "Sample - size", may not be, statistically "significant" to begin with.  However we are going to compile - and graphically plot - each transaction - usage, every month.

So, our sample - size, keeps growing forever and the accuracy of our predictions, will keep improving, with each passing month!

Being able to predict the likely trend the likely no. of transactions - for next 3 months (a kind of monthly rolling forecast), is VERY IMPORTANT for us, from following viewpoints.

·     We can predict the "likely" load on our webserver & our land width & will be able to take advance steps to gear - up.

·     We will be able to predict our "Cash Inflow", profitability/ tax - planning etc.

·     We will be able to do "Resource - Planning".

HEMEN PAREKH