Netflix's Free Trial Effectiveness

Requirements Clarification & Assessment

1. Objective of the Free Trial:

   • Understand the primary goal: Is it purely for user acquisition, increasing long-term subscribers, or boosting immediate revenue?
   • Define what constitutes a successful acquisition: Is it a user who subscribes for one month post-trial, or do they need to maintain their subscription for a longer period?

2. Target Audience:

   • Determine whether the free trial is aimed exclusively at new users or includes returning users who previously canceled their subscriptions.
   • Identify geographical and demographic segments targeted by the free trial.

3. Success Metrics:

   • Clarify the key performance indicators (KPIs) that will determine the trial's success. Are we focusing on conversion rates, retention, or customer lifetime value?

4. Constraints and Assumptions:

   • Are there any constraints on the trial, such as limited availability in certain regions or specific marketing channels?
   • Assume the trial is available to completely new users, with no prior Netflix subscription history.

5. Marketing Strategy:

   • Understand how the trial will be marketed. Will it be through online ads, emails, or partnerships?
   • Define the budget and resources allocated for promoting the free trial.

6. User Journey Mapping:

   • Map out the entire user journey, from encountering the trial offer to potential subscription conversion post-trial.
   • Identify potential drop-off points and areas for improvement in the user experience.

7. Data Collection and Analysis:

   • Establish the data collection process for tracking user interactions during and after the trial.
   • Ensure the necessary tools and infrastructure are in place for data analysis.