In addition, 10% said that the content was no longer attractive. Of the respondents, 10% wanted to switch to other streaming service providers. In July, Netflix announced that it would launch a low-cost membership package with a monthly fee of about US$100,000, but the programs watched by users of this package contained advertisements. This is the first time that Netflix has added advertisements in its programs. H explained, "Although I have always opposed complex advertisements and advocated simple subscriptions, I respect consumers' choices more." On July 2017, Netflix handed in its third-quarter financial report, adding 10,000 new subscribers, that is, paying users, which exceeded the analyst's previous expectation of 10,000 and reversed the situation of user loss for two consecutive quarters. 3. The difference between free value-added and free gifts If a membership company wants to provide free services to members, it must ensure that doing so is conducive to generating operating income.
This free strategy does generate revenue when italy phone number list used properly; you can’t increase the number of free products or services if you can’t make zero profit on every unit of product or service provided.and provides different levels of membership and corresponding benefits to different membership segments. This practice makes them profitable. Many companies make the mistake of arranging options before considering goals. In fact, it is key to consider the business and customer type before defining options to understand what the customer needs are. For example, Tencent Conference and Alibaba DingTalk are two good examples. Unfortunately, they did not integrate membership, which can establish belonging. Generally speaking, the higher the membership level, the more benefits you get. Some of these benefits require the company to pay certain variable costs such as customer service costs.
Some other benefits do not require the company to pay variable costs, but the company can charge a higher fee for them because members find these benefits valuable. When designing pricing tiers for members, you can consider starting with the following indicators: First, quantity. Many members are willing to pay more in order to use more products or services, which means that they want a larger number of goods or services. The difference between this type of member and other members is obvious and it is easy to convey value to them. This type of customer is also easy to develop from the free trial stage to the paid use stage. The approach is to let potential heavy users try free services. Then, starting from the indicator of quantity, take the following two measures. Increase the amount of content. For example, if newspapers want to increase sales, they can provide some free content to such customers, and they need to pay for more valuable content.