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
