AmericanGreeting.com: Test, Test and Test

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It is scary how test-driven AmericanGreetings.com is, considering that is is selling a soft-service, so to speak. Josef Mandelbaum, CEO of AmericanGreetings.com was speaking today at the Selling Subscriptions to Internet Content summit in NYC.

Some interesting figures:

— 2.1 million paying subscribers

— breaking down into obligatory versus non-obligatory occasions and charging for the former.

– 30-days free trial worked best for us (annual renewal after that).

— 30-day trial with 11 month extension vs. 30 day trial with 12 month extension showed increases response rates and profitability

— we are testing monthly and six months subscriptions. monthly is doing ok, but you need to have about seven months of monthly to rival an annual subscriber costs.

— we get six percent of subscribers from e-mail database (permission-based)

— 20 percent subscribers we get from the card itself. (Join-now-to-send-the-card)

— seasonal ads for us don’t work, which is surprising. People went to the card directly, and not the banner.

— 10 percent of subscribers come from picking up the card sent to them by somebody.

— may add Paypal later this year — the overlap between our audiences and Paypal (the eBay audience) is less. Our’s is the Wal-mart, K-mart and Target audience, not the veteran web audiences like eBay’s is.

— we give two free accounts per customers, as that has worked very well for us.

— credit card failure was higher than anticipated. it is closer to 30 percent failure on an annual basis.

The coverage is sponsored by Javien Digital Payment Solutions.

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