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One of the main advantages of having prepaid services refers to the “extras” that the platforms offer.
The initiative sought to reduce the cost of payment services by one cent.
Substack has noted that it routinely seeks to experiment with the cost of its services.
One of the strategies implemented by brands to attract customers by offering promotions or lowering the cost of services for a limited time, an act with which they hope not only to benefit consumers, but also to generate organic loyalty relationships between brands and society. However, these strategies do not always turn out as planned, as shown by a firm that failed to attract clients by lowering the cost of their subscription from $10 to $9.99.
At present, the subscription model has begun to be used more and more, which consists of selling products, services or content to a portfolio of clients on a recurring basis. in exchange for the payment of periodic installments, which are usually monthlya model that has become especially popular within platforms streaming and content like Netflix or Xbox Game Pass.
Advantages of prepaid services
- Visual technological presentations in large dimensions.
- Larger potential audience.
- Use of richer content.
- Listen and watch whenever you want.
- Ease and convenience.
- Analytical monitoring.
- Mobile viewing.
- You control the advertising.
Lower the cost of your subscription to attract customers and strategy does not work
According to what has been disclosed, Substack platform that allows independent podcast writers and creators to publish directly to their audience, through a prepaid platform, sought to attract new customers thereby experiencing the cost of his services, however, this did not work for him at all.
Well, the platform decided to lower the cost of its subscription by 1 cent, which lowered the cost from $10 per month to $9.99, causing subscriptions to fall compared to others, although it should be mentioned that this type of strategy is usually common for Substack, a brand that tests experiments of this style on a daily basis, unfortunately the firm concluded that:
“People often buy subscriptions for different reasons than when they buy more functional and value-oriented subscriptions (for example, Spotify, Netflix, and Amazon Prime, all priced based on this X.99 formula).”
Today we’re excited to announce two improvements to Chat that make it easier than ever to build a community around your publication.
Introducing web Chat & subscriber-hosted threads. https://t.co/yxeEqWJZ7B pic.twitter.com/rvvYKnoEvD
—Substack (@SubstackInc) March 15, 2023
The firm also comments that various users of the platform decide to pay for free content with the intention of benefiting the author of the content and thus giving value to their work, however, by changing the price to the ‘x,99’ style, it can be concluded that the minds of potential subscribers change that idea of support to that of “I’m buying something”, in the same way he adds that they have taken something positive from the study for their users: now they know that there is “greater confidence that the pricing Standard of stack with round numbers is usually the optimal approach.”
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