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J·BJon BishopIndependent growth marketer

Advertising · Empirical analysis of pre- and post-promotion mobile-data usage from a telecom firm, examining initial usage as a determinant of offer redemption and post-redemption usage change; the article also develops an analytical model.

Experience Effect in the Impact of Free Trial Promotions

Management Science · 2021

Sadat Reza, Hillbun Ho, Rich Ling, Hongyan Shi

Summary

Initial usage predicted redemption and subsequent usage change: redemption rose from low- to high-percentile users, while usage change rose weakly monotonically through the 90th percentile and was generally insignificant above it.

For your marketing

Possible founder application

Use this paper as evidence about experience effect in the impact of free trial promotions in the stated context; compare its population, treatment and outcome with your own decision.

Reported result

What the study found

Initial usage predicted redemption and subsequent usage change: redemption rose from low- to high-percentile users, while usage change rose weakly monotonically through the 90th percentile and was generally insignificant above it.

Research question

What the authors investigated

What does experience effect in the impact of free trial promotions show about customer behavior or marketing outcomes?

Design

Empirical analysis of pre- and post-promotion mobile-data usage from a telecom firm, examining initial usage as a determinant of offer redemption and post-redemption usage change; the article also develops an analytical model.

Sample and setting

Telecom-firm customers receiving a free-sample promotion for an experience good; usage distribution is analyzed through at least the 90th percentile.

Scope and transfer

Limitations to keep in view

Conservative inference: this is one telecom firm’s mobile-data experience good and a promotion analyzed with observational usage data, so effects may not transfer to other free trials or products. Full-text methods and correction history were not independently checked.

Research sources

Candidate study metadata and reported evidence were cross-checked against a direct publisher-page retrieval; the full article was not independently reviewed.

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