go local strategy for growth markets - constant...
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Go Local Strategy for Growth Markets:
Panelists: Cristian Gallardo, Regional Manager – LATAM @Avast Patricia Pena, Director of Payments and Fundraising Operations @Wikimedia
Moderator: Danielle Gotkis, SVP of Marketing @dLocal
Payments as a strategic lever to expand user base, grow revenues and drive repeat business
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Session Agenda
1. Session and speaker intros2. ‘Go Local’ strategy case studies:
1. Avast2. Wikimedia
3. Panel discussion 4. Q&A with audience
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Go Local or Go Home!
Case study in localizingfreemium software monetization from
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Challenge
How could we identify the right frictions in the purchasefunnel to improve paid user acquisition?
122 million activefreemium users
Friction
Paidusers
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Avast freemium strategy opened the door into the LATAM market. But what’s next?
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Customer ServiceFree User AcquisitionBrand Marketing Monetization
PR
Social Media
Blog
E-reputation
PPC
PPI
SEO
Download Portals
Pricing
Payments
Campaigns
Phone
Live Chat
Business Development & Partnerships
Localization
Retention
‘Go Local’ model touches all aspects of product
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Hypothesis
Localizing the checkout flow, including payment methods, should influence other pillars.
Simple enough to test.
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Not having relevant payment methods is a source of friction.
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Localized checkout vs. Standard Solution
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Regional results
Recipe:• Enabled all available local payment
methods in each country
• Activated installments for customer who pre-paid for several months in advance
• Pricing in local currency
• Implemented local touches and removed jargon that wasn’t relevant –e.g. ZIP Code and currency abbreviations
Sample*: México, Argentina, Chile, Colombia, Peru
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20% checkout conversion improvement and 40% YoY paid customer growth
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Argentina results
Conversion from Free to Paid users is high:
• At the same level of European countries such as France, Sweden
• Higher than Spain, Italy, Japan
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25% checkout conversion improvement and 56% YoY paid customer growth
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Additional benefits Avast realized by localizing its monetization strategy
• More people have a chance to try premium versions and to give invaluable feedback
• Organically extends LTV • Not only higher but also faster market penetration• Higher customer satisfaction and improved product loyalty• Grew to 85 M+ active users becoming the no.1 antivirus brand
in LATAM
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Opening up new revenue streams in LATAM through localizing payments
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“Imagine a world in which every single
person on the planet has free
access to the sum of all human knowledge.”
Jimmy Wales, Founder of Wikipedia
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Do you know who I am?
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Global Reach Brand Awareness 2016 Survey – Brazil Results
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Business Challenge: How could we grow our donation volume in LATAM?
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Initial market assumptions about LATAM:a. Only the wealthy will make donationsb. Donation is mostly an impulse action – only real time options are OK
Challenges:- High product usage volumes didn’t correspond with low contribution- Brand Awareness wasn’t on our side
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Expansion strategy
• Compliance
• Market size
• Localization
• Prioritization
15“Nasa blue marble” by NASA/ GSFC/ NOAA/ USGS, under Public Domain from Wikimedia Commons
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Brazil:
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Donor Increase
New Payment Options340% Donation
Increase 200%
~ 10%Local Methods Total Conversion
~ 20% Credit Card Conversion Increase
~ 20% Of Total Revenue are Local Methods
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Mexico: 275% Donor Increase
New Payment Options290% Donation
Increase
~ 3%Local Methods Total Conversion
~ 5% Credit Card Conversion Increase
~ 10% Of Total Revenue are Local Methods
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Thinking has evolved after implementation in several emerging markets.
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• Pricing: Less is More• Understanding the situation is key: Depends a lot on the political,
economical situation in the country• Embrace the differences and uncertainties: not all methods will
provide you the same support and easy to troubleshoot• Credit Cards: are still bread and butter – but alternatives bring an
entire new constituency to the game
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Lessons learned from localizing payments
• Not just the wealthy contribute• Donation amounts: range from $1 to $1000. • Average Ticket Value is $7 • Lower ask amounts enabled a larger group to feel like their
donation can make a difference• Local payment options:
• Dramatically increase donor count and revenue in the region • This is baffling, but cash works – even for online donations• Local rails for Credit Card & local currency processing are the 2
most important features for Wiki19
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Panel discussion and audience Q&A
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Go Local Strategy for Growth Markets
Payments as a strategic lever to expand user base, grow revenues and drive repeat business
Speakers:
Cristian Gallardo, Regional Manager – LATAM @Avast Patricia Pena, Director of Payments and Fundraising Operations @Wikimedia
Danielle Gotkis, SVP of Marketing @dLocal
Don’t forget to submit your session evaluation!