July 23, 2015 at 21:00Hello, SaaS | Games with Freemium | Practice Dental Cloud
- Tutorial
Today I am discussing whether it is necessary to make a model and practice of Russian SaaS in our Freemium project. But before that, lyrical dullness. Recently they write to me that I forgot how to write, my texts are unreadable, crooked and like a stream of consciousness. Guys, we have Dental Cloud and flour of creativity with the price of an error in the device to the corporation. So, I apologize - I not only have to deal with new product development, in which there are many open questions and uncertainties, but also describe the construction process, which is not fully understood. At the same time, it seems to me that the stage of searching for solutions and concepts is interesting as the topic of posts, and perhaps my practical material will help someone not to make mistakes and develop their project. So, choose for yourself whether or not to read 'raw materials from the fields'.
Plus, I was at the Open Stack Birthday yesterday, I congratulate the Russian community and Ilya Alekseev once again, and I’ll say that writing about Cinder, Nova, Swift is easy - everything is complete and clear, but it’s difficult to build something new. Which
player has Freemium
- Bitrix24 - 12 users
- AmoCRM - 3 jobs
- MySklad - 1 workplace
- ASoftCRM - one workstation of the simplest configuration
- Сopiny
- maybe someone else, but I don’t see them
Interestingly, Bitrix24 announces on its site 500,000 user companies and only 6 or 8 K paying. Those. conversion is 1.2 +%. This is catastrophically small and as a result, we can expect a “hard” transfer of the free customer base to paid tariffs. This is my hypothesis and we must look. If we talk about Evernote, then they have a conversion from a non-paying base of 2-4% (for business solutions).
In the practice of Russian SaaS, there were cancellations of free tariffs. This was done by colleagues from Copiny - they apologized to users and said that their product was not needed by small companies. The cancellation, of course, is a personal matter of Dima Chistov , but, in my opinion, this is stress for the new SaaS market and a decrease in confidence in SaaS in general. We don’t want to do this and therefore weighed all the pros and cons before making an important decision for us.
Important
In fact, in a startup, the critical indicator is not the number of users of the free tariff TOTAL, but the rotation from free to paid. Rotation = money and you can influence this parameter by the following factors:
At the same time, I believe that “Rotation” is more of an external factor that you cannot influence. For example, how do you know when the director of a client company decides to develop a business and buy licenses? And the “Half-Life Rule” works for SMB - in 5 years half of the created companies will be closed, among which there will be your customers.
Following these limitations, we started developing Freemium.
As we reason and the decision has not yet been made
Our segment is too narrow in Russia - 10,000 clinics and 100,000 doctors. If you look at Bitrix conversions, then we will fly on the local market and we think more about global promotion, which is a priority for us. Previously, we got 2 scenarios for providing Freemium - the first 1 workplace with full functionality, the second - partial functionality for one or more jobs.
What is Freemium
1.1 for? Removing the cost threshold of the decision to use the product - no price;
1.2. Virality - doctors will tell each other about free;
1.3. Promotion without a budget from the above.
Cons
2.1. Conversions 1.2-4%;
2.2. Limited market;
2.3. It may interfere with making money - some potential users are willing to pay;
2.4. Costa on hosting;
2.5. With free easy to leave;
2.6. The transition to paid tariffs is rather a process that lives on its own and you do not affect it.
Options Freemium Dental Cloud
"All functionality for one doctor"
3.1. For offices only;
3.2. There is a tendency for the dentistry market to consolidate - offices are closing or doctors are leaving for clinics. The situation of constant rotation will positively affect the conversion to paid tariffs;
3.3. We receive less money because the cabinet is generally solvent;
3.4. Conversion only during enlargement or the desire to delegate part of the work to the administrator - "role growth". - i.e. the script such a
doctor works, like, buys;
3.5. It is possible and preferable to limit the number of visits, such as pressure on the update. The problem is re-registration on Freemium, that is, there should be no “import-export” functionality clearly.
“CRM” - only work with clients without BPM ( service structure )
4.1. Only customer accounting and stickers;
4.2. There is no treatment module and all treatment in the form of stickers;
4.3. Re-purchase of the treatment process is possible. There is some new functionality for which you have to pay;
4.4. Case - the doctor rents an office and there is no desire to use the building automation tool or the doctor "hackle" and he needs to maintain his base;
4.5. In this case, reporting is removed for the artificial formation of the functionality for which you have to pay;
4.6. Technological difficulties of 'picking out' the necessary functionality.
Functionality for several doctors and administrator with restriction on patient visits
5.1. Technological difficulties of 'picking out' the necessary functionality.
5.2. There is no understanding of how many visits to include in the tariff
5.3. Variant undetermined rotation rate
5.4. At the end of the number of visits or an explicit refusal to use or payment for the service. Those. We do not purchase a pool of free users, but the rotation in paid users can be high.
Note
Summary
So far, it is scary to announce Freemium in Russia against the backdrop of a solvent automation segment and is evident for global development. Perhaps we will conduct a study and decide how to develop.
Actually, that's all - I promised to be short and concise. By the way, this cake with other Open Stack
Previous materials author
Plus, I was at the Open Stack Birthday yesterday, I congratulate the Russian community and Ilya Alekseev once again, and I’ll say that writing about Cinder, Nova, Swift is easy - everything is complete and clear, but it’s difficult to build something new. Which
player has Freemium
- Bitrix24 - 12 users
- AmoCRM - 3 jobs
- MySklad - 1 workplace
- ASoftCRM - one workstation of the simplest configuration
- Сopiny
- maybe someone else, but I don’t see them
Interestingly, Bitrix24 announces on its site 500,000 user companies and only 6 or 8 K paying. Those. conversion is 1.2 +%. This is catastrophically small and as a result, we can expect a “hard” transfer of the free customer base to paid tariffs. This is my hypothesis and we must look. If we talk about Evernote, then they have a conversion from a non-paying base of 2-4% (for business solutions).
UPD
UPD : I can’t remember exactly where I read about the paid customers of my colleagues, but after an evening walk, I had a doubt that paying customers were much smaller. If so, then we have a rather risky picture in terms of metrics. Tomorrow I promise to talk with Bitrix and ask for comments on statistics.
Sergey Ryzhikov declined to comment, but the following statistics are available on the network : “By and large, we have such an internal indicator, more than 20% of those who registered and looked, 20% of companies become our active customers." It remains to figure out whether 500 K is 20% or still 20 out of 500.
Today we managed to get comments from Askar Rakhimberdiev(MoySklad) - he has "of the active users 30% are free." A third of the active ones do not pay - is it good or not let it remain
Sergey Ryzhikov declined to comment, but the following statistics are available on the network : “By and large, we have such an internal indicator, more than 20% of those who registered and looked, 20% of companies become our active customers." It remains to figure out whether 500 K is 20% or still 20 out of 500.
Today we managed to get comments from Askar Rakhimberdiev(MoySklad) - he has "of the active users 30% are free." A third of the active ones do not pay - is it good or not let it remain
In the practice of Russian SaaS, there were cancellations of free tariffs. This was done by colleagues from Copiny - they apologized to users and said that their product was not needed by small companies. The cancellation, of course, is a personal matter of Dima Chistov , but, in my opinion, this is stress for the new SaaS market and a decrease in confidence in SaaS in general. We don’t want to do this and therefore weighed all the pros and cons before making an important decision for us.
Important
In fact, in a startup, the critical indicator is not the number of users of the free tariff TOTAL, but the rotation from free to paid. Rotation = money and you can influence this parameter by the following factors:
- clear external difference between tariffs
- the value of paid functionality - it may turn out that the user will have enough free part of the service to solve his problems
- self-sufficiency of free functionality - the user will not work on a semi-finished product
- scenarios for the use of paid and free tariffs - ideally, they can be the same or complement each other
At the same time, I believe that “Rotation” is more of an external factor that you cannot influence. For example, how do you know when the director of a client company decides to develop a business and buy licenses? And the “Half-Life Rule” works for SMB - in 5 years half of the created companies will be closed, among which there will be your customers.
Following these limitations, we started developing Freemium.
As we reason and the decision has not yet been made
Our segment is too narrow in Russia - 10,000 clinics and 100,000 doctors. If you look at Bitrix conversions, then we will fly on the local market and we think more about global promotion, which is a priority for us. Previously, we got 2 scenarios for providing Freemium - the first 1 workplace with full functionality, the second - partial functionality for one or more jobs.
What is Freemium
1.1 for? Removing the cost threshold of the decision to use the product - no price;
1.2. Virality - doctors will tell each other about free;
1.3. Promotion without a budget from the above.
Cons
2.1. Conversions 1.2-4%;
2.2. Limited market;
2.3. It may interfere with making money - some potential users are willing to pay;
2.4. Costa on hosting;
2.5. With free easy to leave;
2.6. The transition to paid tariffs is rather a process that lives on its own and you do not affect it.
Options Freemium Dental Cloud
"All functionality for one doctor"
3.1. For offices only;
3.2. There is a tendency for the dentistry market to consolidate - offices are closing or doctors are leaving for clinics. The situation of constant rotation will positively affect the conversion to paid tariffs;
3.3. We receive less money because the cabinet is generally solvent;
3.4. Conversion only during enlargement or the desire to delegate part of the work to the administrator - "role growth". - i.e. the script such a
doctor works, like, buys;
3.5. It is possible and preferable to limit the number of visits, such as pressure on the update. The problem is re-registration on Freemium, that is, there should be no “import-export” functionality clearly.
“CRM” - only work with clients without BPM ( service structure )
4.1. Only customer accounting and stickers;
4.2. There is no treatment module and all treatment in the form of stickers;
4.3. Re-purchase of the treatment process is possible. There is some new functionality for which you have to pay;
4.4. Case - the doctor rents an office and there is no desire to use the building automation tool or the doctor "hackle" and he needs to maintain his base;
4.5. In this case, reporting is removed for the artificial formation of the functionality for which you have to pay;
4.6. Technological difficulties of 'picking out' the necessary functionality.
Functionality for several doctors and administrator with restriction on patient visits
5.1. Technological difficulties of 'picking out' the necessary functionality.
5.2. There is no understanding of how many visits to include in the tariff
5.3. Variant undetermined rotation rate
5.4. At the end of the number of visits or an explicit refusal to use or payment for the service. Those. We do not purchase a pool of free users, but the rotation in paid users can be high.
Note
- In both cases, it is possible to connect a communications module for money.
- Sticker - notes, planning, working with calendars.
Summary
So far, it is scary to announce Freemium in Russia against the backdrop of a solvent automation segment and is evident for global development. Perhaps we will conduct a study and decide how to develop.
Actually, that's all - I promised to be short and concise. By the way, this cake with other Open Stack
Previous materials author