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<blockquote data-quote="AbdulAlhazred" data-source="post: 5369100" data-attributes="member: 82106"><p>I think you're seriously overstating the case. 87k book sales a month is a HUGE number, I seriously doubt WotC has ever even approached those kinds of sales numbers in their wildest dreams.</p><p></p><p>Suppose you sell 50k of a new book in the first month. You have given out 250k worth of $5 coupons. What is the redemption rate likely to be? 25% would be a VERY good rate for any sort of redemption program. So you end up with 12k new users that get a free month of the $5 "player" DDI subscription and that costs you around $60k IN THEORY, but in reality many of those people won't pay if they don't have the coupon, so the LOST sales of DDI subscriptions might amount to $1 a book or something on that order.</p><p></p><p>Now, if they make $.50 a month per DDI subscription and 25% of those people actually sign up after their $5 coupon is up then you just added $1500 a month of new PROFIT and gained 3,000 new loyal DDI customers. Basically you recoup your investment in customer acquisition in about 8 months, which is VERY GOOD for a retail program of any kind.</p><p></p><p>In other words the whole thing makes massive sense to me. I don't know all the actual numbers and maybe DDI penetration is already high enough that they don't need to do it, but I'm sure ideally they want every buyer of books subscribing and the coupon is certainly the most direct way to do that which I can think of.</p><p></p><p>Sure some people will steal coupon codes, big deal. It really isn't worth much to anyone that doesn't play 4e, so what will anyone gain from that? They can just buy the book, which presumably if they want DDI they are likely to want to do, and use the coupon. It simply isn't going to happen that much. If it does, then CS just gives the guy that got ripped off another coupon code, big deal. </p><p></p><p>It would work. My numbers are somewhat made up and the real ones might be different enough that it would be too costly but really I doubt that, it could easily pay for itself in 1 month with slightly more favorable numbers. If nobody uses the coupons? You lost nothing.</p></blockquote><p></p>
[QUOTE="AbdulAlhazred, post: 5369100, member: 82106"] I think you're seriously overstating the case. 87k book sales a month is a HUGE number, I seriously doubt WotC has ever even approached those kinds of sales numbers in their wildest dreams. Suppose you sell 50k of a new book in the first month. You have given out 250k worth of $5 coupons. What is the redemption rate likely to be? 25% would be a VERY good rate for any sort of redemption program. So you end up with 12k new users that get a free month of the $5 "player" DDI subscription and that costs you around $60k IN THEORY, but in reality many of those people won't pay if they don't have the coupon, so the LOST sales of DDI subscriptions might amount to $1 a book or something on that order. Now, if they make $.50 a month per DDI subscription and 25% of those people actually sign up after their $5 coupon is up then you just added $1500 a month of new PROFIT and gained 3,000 new loyal DDI customers. Basically you recoup your investment in customer acquisition in about 8 months, which is VERY GOOD for a retail program of any kind. In other words the whole thing makes massive sense to me. I don't know all the actual numbers and maybe DDI penetration is already high enough that they don't need to do it, but I'm sure ideally they want every buyer of books subscribing and the coupon is certainly the most direct way to do that which I can think of. Sure some people will steal coupon codes, big deal. It really isn't worth much to anyone that doesn't play 4e, so what will anyone gain from that? They can just buy the book, which presumably if they want DDI they are likely to want to do, and use the coupon. It simply isn't going to happen that much. If it does, then CS just gives the guy that got ripped off another coupon code, big deal. It would work. My numbers are somewhat made up and the real ones might be different enough that it would be too costly but really I doubt that, it could easily pay for itself in 1 month with slightly more favorable numbers. If nobody uses the coupons? You lost nothing. [/QUOTE]
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