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38

Jio & PepperTap both were freebie brands, but only one survived. Why?

Some quick history.


September 2016: Jio launched.

November 2014: PepperTap launched.


Jio| Rolled out free data for a year.

PepperTap | Gave almost 100% cashback for first-time customers.


March 2021

Jio posted a net profit of Rs 3,508 crore for the quarter

It's been 5 years PepperTap has shut shop


Both of them relied on discounts to drive.

  1. Adoption for tryouts.

  2. Create habit behaviour.


But, there is always this "But"


Jio had lower data cost, better reception & superior data speed.

PepperTap had hundreds of problems from product quality to delivery experience.


What made all the difference?

Your trial / cashback / free stuff will only help you get the first early adopter set of customers. These customers typically price sensitive, always asking for value and are influential.


Think.

Your friends who bought smartphones back in 2010, most of them will fall into this bracket. However, these folks value product offering and make habit change if it truly adds value.


Grocery delivery did not add value to the market back then - time vs money, the value of money was much higher. While data consumption allowed true freedom to the early users.


Insight.

Create a discounting, trial loop on your product only if you have figured out the true value that you offer & high have confidence that potential customers will retain without the discounts.