Moving from Free to Paid: 3 things that you cannot afford to mess

Often consumer online products need a critical mass of users to even know if the product is indeed 6280507539_f32a72be10_qworking and adds value to the users. Most products start by offering the product/service free to attain critical mass and also get actively engaged users. No sooner does it gather enough engaged users, the juggernaut of “monetization” is on its way and the only model that might be feasible is the user-paid model. Most products usually have a well-thought road-map on how long the free model must continue and how to start some positive cash flow. When you move to a paid model, you could mess up totally by doing these:

- Convolute the user experience: This strategy only spells doom for the product. Alternatively, look at features you can carve out for paid users; the user experience of the product as a whole should be left in-tact. Sometimes it so happens that the whole set of existing features forms the perfect user experience and removal of any feature cripples the product so much so that it becomes useless. In such cases, the challenge would be to create new feature set – which are enticing enough for a segment of users to pay or create a limited time period for usage of the free product.

- Delay moving away from free: The conversion percentage from paid to free is usually a small fraction; running free version for a long period increases the cost of acquisition of paid users.

- Asking for “long-term” commitment: Users moving from free to paid should have a smooth “on-boarding” experience. Mandatory long period sign-ups (even if there is opt-out facility) causes high drop-out rates among users.

You build your user base with a lot of effort – let it not wither away when you need them the most.

 

Photo credit: https://www.flickr.com/people/68751915@N05/

Banish long Sprint Planning meetings

In the Agile world, a Sprint Planning meeting would typically have the Business / Product Owner listing and explaining each story to be delivered and the team goes about doing their best to understand each story based on questions and discussions. The team then estimate the effort needed for each story and commit to whatever they think is feasible within the Sprint duration. For a 2 week Sprint, this typically takes around 3-4 hours.

In many cases, discussions on stories unearth scenarios that need further Analysis by the Product Owner before they can be ready for development. These stories cannot be picked up for development even if they are of highest priority since there are some unknowns about them. This means that the Sprint backlog could consist of stories that are not of highest priority. Also, this results in a long Planning meeting due to more discussions and more stories to discuss.

Is there a way to change this and ensure that the Sprint backlog is filled with stories of highest priority and value? Also, is it possible to have a shorter planning meeting?

Fortunately, the answer is Yes…

The key is to remove the discussions and visit all possible scenarios up front.

The answer is to have an Elaboration session for the next Sprint in the middle of the current Sprint. The Scrum Master gets the team and the Product Owner together for the Elaboration session. Here, the Product Owner presents the stories for development in the next Sprint and solicits questions and feedback. The team and Product owner discuss all possible scenarios and get a complete understanding. There is a huge possibility that some stories might not be ready for development. The Product Owner then has the time to action these before the actual Sprint planning meeting a week later.

This way, the team is fully aware of the stories coming up in the next Planning meeting, the Product owner has time to fine tune his high priority stories and many stories can be committed to and taken up for development without much discussion at the planning meeting. All this leads to a short planning meeting and a less stressed out team. The additional meeting that is added would provide value by unearthing issues up front thus providing enough time for resolution.

I strongly encourage management and teams to try this option out. Do let us know how this worked for you.