5 ms·

3% conversion rate in this context is an empty statement. Conversion rate is entirely subjective to the product, its price, and the margins on the backend. EDI

by dchuk 14y ago

3% conversion rate in this context is an empty statement. Conversion rate is entirely subjective to the product, its price, and the margins on the backend. EDIT: I agree that a non-paying customer is just a user (duh) but the goal of a product is to grow your customer base (to meet the real goal of increasing your profit). So anyone using your product for free needs to be doing so as a means to an end: Either they will convert to a paying customer at some point, or they will refer paying customers. If you're building a fun side project, free users are groovy. But if you're trying to grow a profitable company, and your free users aren't working for you in one way or another, they're just a liability.

debacle 14y ago
> Conversion rate is entirely subjective to the product Actually, conversion rate is completely objective - it is the percentage of users you have who 'convert' and become customers. What that means for your company might be different from product to product and industry to industry, but a 3% conversion rate for freemium is awesome.
- dchuk 14y ago
  I suppose I was unclear, I meant the value from a 3% conversion rate for a product is subjective to that product or niche.
  - adgar2 14y ago
    That isn't what the word "subjective" means. For each market, there are objective numbers to be researched and acted upon. You mean 3% conversion being awesome "is relative to"/"varies by" a given product or niche.
    - dchuk 14y ago
      "For each market, there are objective numbers to be researched and acted upon." and "A 3% conversion rate being awesome is subjective to the niche or product" are compatible statements. EDIT: "subjective" is traditionally used when someone's opinions or biases are influencing a decision or conclusion, so I see where the confusion is here and the fault is mine for using that word. My main point is that there is no one-size-fits-all "good" conversion percentage, it's entirely dependent on the product and market.
  - nopinsight 14y ago
    I think the word you're looking for is "subject to that product...".

by dchuk 14y ago

debacle 14y ago

> Conversion rate is entirely subjective to the product Actually, conversion rate is completely objective - it is the percentage of users you have who 'convert' and become customers. What that means for your company might be different from product to product and industry to industry, but a 3% conversion rate for freemium is awesome.

dchuk 14y ago
I suppose I was unclear, I meant the value from a 3% conversion rate for a product is subjective to that product or niche.
- adgar2 14y ago
  That isn't what the word "subjective" means. For each market, there are objective numbers to be researched and acted upon. You mean 3% conversion being awesome "is relative to"/"varies by" a given product or niche.
  - dchuk 14y ago
    "For each market, there are objective numbers to be researched and acted upon." and "A 3% conversion rate being awesome is subjective to the niche or product" are compatible statements. EDIT: "subjective" is traditionally used when someone's opinions or biases are influencing a decision or conclusion, so I see where the confusion is here and the fault is mine for using that word. My main point is that there is no one-size-fits-all "good" conversion percentage, it's entirely dependent on the product and market.
- nopinsight 14y ago
  I think the word you're looking for is "subject to that product...".