Impact of Discounted Email Campaigns

Requirements Clarification & Assessment

1. Clarification Questions:

   • Discount Reversion: Post the first month, do users revert to regular pricing?
   • Network Effects: How does the file-sharing network impact user behavior when one user is on a discounted plan and another is not?
   • Revenue Increase Definition: What constitutes an effective revenue increase? Is there a specific percentage or dollar amount?
   • Time Horizon: Are we looking at immediate revenue gains or long-term increases?
   • Threshold for Success: Is there a minimum revenue increase needed for the campaign to be considered successful?

2. Revenue Consideration:

   • Assess the definition of revenue increase. Is it short-term (first month) or long-term (over several months)?
   • Understand the baseline metrics for conversion and retention rates prior to the campaign.

3. User Behavior:

   • Determine how users typically transition from the free tier to paid plans.
   • Analyze historical data on user churn and retention rates.

4. Campaign Costs:

   • Identify the costs associated with running the campaign, including the discount offered and operational expenses.
   • Consider the breakeven point for the campaign to be profitable.