Sunday, December 29, 2013

Evernote CEO Phil Libin on Turning Loyal Users Into Paying Customers - Arik Hesseldahl - News - AllThingsD

That and the Evernote socks, of course
"So about how many users do you have now? And how readily are you making money off the users you have?
We have about 80 million users globally, and that’s a combined number for free and paid. Our conversion rate increases linearly with cohort age, so the longer you use Evernote, the more likely you are to convert to premium. The idea is that we want you to use Evernote forever. Once you’re using it, we want you to keep using it, and it’s more important that you stay than you pay us. We want the engagement. The longer you use it, the higher the perceived value gets. And the higher the perceived value, the more willing you’re willing to pay. It’s up to us to make something that you want to pay for. The percentage of people who pay in the first month is like one half of one percent. But if they use it for a year, that goes up to seven percent. In the second year, it goes up to 11 percent. Our oldest cohort, the people who have been with us five years or so, it goes up to 25 percent."
Evernote CEO Phil Libin on Turning Loyal Users Into Paying Customers - Arik Hesseldahl - News - AllThingsD
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