Monday, August 19, 2013

Manual intervention (Part 2)

Giving Away Freebies
While giving away free stuff doesn't sound like the right thing to do, many businesses owe their success to this practice. "Freebie Marketing"(link), also known as the razor and blades business model, is a business model where one item is sold at a low price (or given away for free) in order to increase sales of a complementary good, such as supplies (inkjet printers and ink cartridges, "Swiffers" and cleaning fluid, mobile phones and service contracts).

Freebie Marketing in MTGO
While many might think that giving away free cards isn't beneficial within a MTGO business the reality is, after I done some tests, I had some positive results which I will share with you.
Many of my sales out of the client (such as on my bots website and others) are made by MTGO users that never traded with my bots and many of which are quite new to MTGO. While this seems like a perfect combination to have a bit of a chat and introduce them to my bots (and hopefully get a new regular Customer), the reality is that only about 10-15% ended up using my bots after their order.

The Test
My test was to give every customer(that never used my bots before) that made any order above $10 or so a few cents credit on my bot (such as 0.5 - 0.75), explain them my bots unusual pricing and see what happened. While my sample isn't the biggest, I can tell that within one week of giving the "freebie" at least half of my "test subjects" done at least trade with my bots worth over 1 Event Ticket.

Examples of this marketing strategy can be seen all over MTGO. From "free bots" (easily over half of new players hear about mtgotraders "free bot" within 1 month of playing MTGO) which give a massive advertisement to their chain, to discount codes on first orders, etc.
Remember to be wise if you are trying this path as part of my success could be due to the Customer trust made from a very fast delivery and clear helpful communication on their purchased goods in the first place.

On next week, I'll talk about card transfers.

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