Startable – Healy Jones’ & Prasad Thammineni’s Blog

Here’s the punchline – loyalty really positively impacts in app purchases!

Here’s the data, from Localytics:

According to LocalLytics, “Of all users in Localytics’ study who made an in-app purchase, 44% did not do so until they had interacted with the app at least ten times. On average, a user who makes an in-app purchase will do so 12 days after first launching the app.”

Read the entire article – it’s really interesting.

I was able to help host a freemium discussion at the recent Unconference. Great notes of the event were taken here.

Also, check out the “Healy Jones in Action” shot below from the event. Thanks to Krushtown for all this great content.

Healy Jones in Action

One of my sysadmins pointed out a great post from yesterday on using a decoy on your pricing page. If done well this can be a great strategy.

I’ve used this decoy pricing tactic on OfficeDrop’s pricing pages for a while. In particular, our digital filing pricing page has an expensive plan that has nicely increased overall conversion on the page.

The main result of this decoy is increased conversion on the page. In otherwords, a higher number & percent of visitors to the page pick a plan and become an OfficeDrop user. It hasn’t really changed the MIX of plans (very few people pick the expensive plan and the same % of people pick the other plans). But I consider the decoy plan a success because it’s getting more people into our funnel.

You can see the pop here when we added a decoy pricing plan to our standard digital filing pricing page. This chart is the % of visitors who visited the page and then signed up for a plan. I.e. the conversion rate of the page. Note that there is a little dip in the beginning that has nothing to do with pricing; it’s a data error. The way to look at this w/o the data error is the two little peaks on the left are close to the pre-decoy conversion rate average; the hump on the rigth is the new average post addition of the decoy pricing plan.

What the Decoy Pricing Plan Looks Like

The decoy pricing is the “ScanPro” “ScanFive” plan on the right. (Thanks for the typo catch Pete!)

Decoy Pricing Plan

It’s designed to be expensive and to make clear that we’ve got the ability to support additional users in the plans… it’s not really clicked that often.

Anyways, check out the post I linked to above. You’ll find it very solid, and it explains why a decoy plan works.

Came across a study by a company called Comparz and found the following quote interesting:

Only 20% or less of SMBs found vendor websites and conversation useful. So what are SMB’s looking for? Over 90% of business users said that user reviews and user ratings and rankings would be the strongest help in making vendor decisions. In addition, 84% indicated that decision guides outlining what to consider when purchasing a solution and would be useful. They also seek a community where they can chat online with similar buyers.

This goes along with my mobile app marketing strategy of getting existing power users to step up and review new versions of apps in app stores.

Yup, it’s me, Healy Jones, talking about the OfficeDrop cloud filing system switch to freemium with Lincoln Murphy of 16Ventures. Lincoln is that well known SaaS pricing guy, and we go over the switch OfficeDrop made from a pure web only service with a 60 day free trial to an app focused business with a freemium pricing model.

The switch in our pricing strategy has been pretty huge for OfficeDrop. It’s driving a lot of new user growth – both free and paid. It’s been only a month and a half since the switch and the change is clearly measurable with our analytics packages. So far, for our SaaS company, freemium seems to be working.

Check out the interview with on why OfficeDrop went Freemium here! Or simply watch the video embedded below.

Healy Jones with Lincoln Murphy on Freemium

I’m pretty excited about a new partnership my company has that just launched. OfficeDrop is working with Nuance’s PaperPort desktop filing system to bring the newest version of PaperPort, PaperPort 14, to the cloud.

The team here at OfficeDrop was able to connect our APIs to PaperPort 14′s desktop client, making it simple to right click any folder from within PaperPort 14 and automatically sync all files to the cloud. If you include the mobile apps we developed this means you can right click a folder and the text search, browse and share the folder and it’s contents from your phone. It’s pretty cool and the tech press seems to be getting it. You can buy PaperPort 14 at paperport.com, where you can also sign up for a free PaperPort Anywhere account. And the mobile apps are here:

• PaperPort Anywhere iPhone and iPad App
• PaperPort Anywhere Android App

Obviously preparing for this was a ton of work, which is why I’ve been totally silent on the blogging front. Hopefully now that we are launched I”ll have time to get back to posting more frequently!

Below is the press release by Nuance talking about PaperPort Anywhere.

Nuance Launches PaperPort Anywhere Cloud Service

Making it Easy for Millions to Organize, Access and Share All of Their Paper and Digital Documents, Anywhere and Anytime

BURLINGTON, Mass., August 2, 2011 — Nuance Communications, Inc. (NASDAQ: NUAN), a leading provider of speech and imaging solutions, today introduced PaperPort® Anywhere, a new cloud-based service that makes it easy to organize, access and share documents from nearly any PC and mobile device. PaperPort Anywhere lets users manage and access their documents in the cloud using web browsers, as well as using free apps from Nuance for Apple® and Google® Android® mobile devices.

The service uses the market-leading Nuance OmniPage® OCR (optical character recognition) engine to automatically create searchable documents from scanned and camera-captured documents, as well as faxes, making paper content as easy to search and find as digital documents. As a result, users can organize, access and share all of their document content on PaperPort Anywhere.

“There is a reason that recent surveys show over 51% of people still use paper files – it is in large part because current cloud services treat paper content as an afterthought,” said Robert Weideman, vice president and general manager for the Nuance Document Imaging Division. “PaperPort Anywhere goes further than other services by closing the content gap between paper and digital documents – making it easy to scan to the cloud, improving the way users manage both their scanned and digital documents, and by making cloud access easy and convenient.”

PaperPort Anywhere also integrates with the new release of Nuance PaperPort 14 for Windows®, the world’s most popular scanning and document management application for the PC, which was also announced today. PaperPort 14 provides automatic synchronization of Windows folders and files with PaperPort Anywhere. It also adds conversion of scanned and PDF documents into fully formatted word and spreadsheet files that can be edited on Windows, the Macintosh and through cloud services such as Google Docs and Microsoft Office 365. PaperPort 14 provides robust PDF capabilities, including the ability to create PDF from practically any application, and includes PDF-MRC, which creates scanned files that are up to eight times smaller than scanned PDF files without compression.

PaperPort Anywhere is valuable to anyone that works with documents, including the over 20 million registered users of Nuance desktop applications, and users of the more than five million seats of PaperPort that are deployed each year. PaperPort Anywhere includes free apps for Apple iPhone, iPad and Google Android devices, and is free for up to one gigabyte of searchable storage space. PaperPort Anywhere subscription plans include $9.99 per month for 10 gigabytes and $24.99 per month for 50 gigabytes of storage space.

PaperPort Anywhere Key Features and Benefits

PaperPort Anywhere makes it easy to organize, access, and share any document – both paper and digital – anywhere and anytime. Key features and benefits include:

• Organize All Your Documents in the Cloud. PaperPort Anywhere is more than cloud storage – it provides a better way to organize and use your documents. PaperPort Anywhere’s thumbnail and clip views of paper and digital documents are key features that help you quickly organize documents.
• Search and Find both Paper and Digital Documents. PaperPort Anywhere is powered by the Nuance OmniPage OCR engine, which provides the highest levels of accuracy for scanned documents and image PDF files, such as those from fax services. The best OCR means users can find indexed paper documents just as they do Word and spreadsheet files.
• Access and Use, Anywhere and Anytime. PaperPort Anywhere is accessible through any web browser at www.PaperPort.com, the web gateway to PaperPort Anywhere cloud services. Nuance also provides free apps for the Apple iPhone®, iPad® and Google Android devices, and supports Microsoft Windows through PaperPort 14.
• Share and Collaborate. PaperPort Anywhere makes it easy to share links to files stored on the site. The service also supports secure and permission-based emailing of files into PaperPort Anywhere accounts, making it easier than ever to collaborate and share documents with others.
• One Click Scan to Cloud. Only PaperPort Anywhere integrates with PaperPort 14 – the world’s most popular scanning and document management application for the PC. The combination results in unmatched document productivity and convenience.

Pricing and Availability

PaperPort Anywhere with up to one gigabyte of searchable storage is free. PaperPort Anywhere Premium with up to 10 gigabytes of storage is $9.99 per month and $24.99 a month for 50 gigabytes of storage. For additional information on PaperPort Anywhere visit www.PaperPort.com.

About PaperPort Anywhere

PaperPort Anywhere is a new, innovative cloud service from Nuance that makes it easy to scan, organize and share documents – anytime, from anywhere. PaperPort Anywhere is powered by OfficeDrop. It delivers enhanced search-indexing capabilities using Nuance OmniPage OCR.

Nuance Communications, Inc.

Nuance Communications, Inc. is a leading provider of speech and imaging solutions for businesses and consumers around the world. Its technologies, applications and services make the user experience more compelling by transforming the way people interact with information and how they create, share and use documents. Every day, millions of users and thousands of businesses experience Nuance’s proven applications. For more information, please visit www.nuance.com.

Trademark reference: Nuance, the Nuance logo, and OmniPage and PaperPort are registered trademarks or trademarks of Nuance Communications, Inc. or its affiliates in the United States and/or other countries. All other company names or product names referenced herein may be the property of their respective owners.

# # #

Media and Industry Analyst Contact:

Jennifer Shelgren

Nuance Communications, Inc.

Tel: (781) 565-4758

Email: jennifer.shelgren@nuance.com

Interesting research from Flurry again (they were the ones who put out the info that mobile app usage is topping regular web browsing). This time they have data showing that free or “freemium” app titles are generating more revenue than pure paid apps. From a MediaPost summary of the research:

Flurry shows that over the last six months, revenue from free-to-play game apps has overtaken that from paid apps. Among the top 100 grossing games in the App Store as of June, more than two-thirds (65%) of the revenue generated came from freemium games and 35% from paid games.

That’s nearly opposite the situation from six months ago, when paid game apps accounted for 61% of revenue and free titles, 39%. What’s changed since January? Peter Farago, vice president of marketing at Flurry, pointed out that Apple began counting in-app purchases toward app gross revenues at the end of 2010, reflecting the impact of that sales stream in its ranking of top-grossing titles.

Free apps generating more revenue than pure paid apps

So, this research is focused on games, but OfficeDrop is betting the same will be true for our b2b SaaS app. We switched to a freemium model earlier this week, mainly driven by the feedback we were getting in the app stores. App store people just expect to try stuff for free and don’t like free trials. We can’t get them to read the app description that talks about the free trial period; they just look at stars, download and then leave a nasty review without trying the service. Hopefully this freemium experiment will pay off for us. Initial web signups are promising, but it’s too early to tell!

A couple of good links, one by me and one by Scott Orn of Lighthouse Capital.

Good Ideas are Never Lonely

Don’t let the fact that there is competition deter you from starting your company. Scott talks about how he beats the competition with his non-funded, not for profit social network Ben’s Friends. Very cool post. Good ideas are Never Lonely.

Don’t Let Old Content Go To Waste

I wrote this post for DIY Marketers – don’t let old blog content go to waste! You can get both SEO love and qualified traffic from highly visited and page ranked older blog posts. This is one way to do it.

Ok I’ve got to brag a little here. OfficeDrop recently launched our newest mobile app, the OfficeDrop Android Paper-to-Go app, and we’ve had great success with new users and downloads. I’m working on a post about how SEO may be dying, at least for SaaS services, since the huge majority of our new users are coming from app marketplaces these days. I really think we are undergoing a significant shift in the way people find and buy software and web services… and I’m personally having a ton of fun trying to figure it out!

Anyways, here is some of the recent press OfficeDrop has gotten on our new Android app:

May 18, 2011

OfficeDrop: Scan Docs, Turn Them into PDF & Make Searchable (Android)

Using Paper-to-Go you can scan physical documents using your smartphone’s camera and store these documents … other file formats can be uploaded and processed as well. Read OfficeDrop’s Paper-to-Go Review on makeuseof…

I’ve just had a couple of articles published on other sites. I guess that is my excuse as to why I haven’t been posting very much on Startable recently…

Raising prices without causing a customer meltdown

If you recall, OfficeDrop changed prices last year. The pricing change went very smoothly – unlike some other pricing fiascos we’ve witnessed recently. I discuss the reasons I think our pricing change went smoothly. In particular, I think SaaS companies are challenged when they try to raise prices because of the recurring, generally non-contractually bound, relationships they have with their customers.

Press release tool for small businesses

I love some of the Grader products offered by Hubspot. In particular, when I was first learning to write press releases their free Press Release Grader was very helpful. I explain on DIYMarketers why I like this press release tool and recommend it to other business owners.