Features / The surgery
Business Surgery: Booking Live
Year established: 2007
Where the company is based: Central Bristol
Sector: Software, website design
Number of staff: 10
Owners: Vinnie Morgan
Key clients: We have a multitude of clients based within a variety of industries. Some of our most well-known clients include: NHS, David Lloyd Leisure, Rick Stein’s Seafood School, Spirit Pub Company, Bristol 2015.
Website: www.bookinglive.com
Company overview
Booking Live provide online booking software to a range of businesses and organisations. Starting life as a digital agency, we noticed the demand for booking software after creating a booking system for a zorbing company. From here we productised and have gone on to develop over 200 booking systems in 8 years.
Priding ourselves on the flexibility of our software, we are able to provide close to bespoke services at a cost-effective rate. With an in-built CMS/page editor our clients are able to log-in to their booking system and manage their website pages and bookings from one place. Alongside booking software, we also supply clients with optional extras such as website design and SEO services. Our work is underpinned by our main aim; to help business manage their bookings and their business.
The Challenge
We run a product SAAS business, with monthly fees from £50 to several thousand pounds. To scale down the product and offer a ‘freemium’ model means large hosting and support fees with a low ROI. Is it worth the risk and what key factors should we consider?
FEEDBACK
Alex O’Donnell
Account Executive at Hayes Parsons Insurance
It seems that at present you are a customer-focused organisation, offering high level of service to some top tier businesses. Would rapid growth via a freemium model allow you to stay true to your values? If not then perhaps this route is not worth the risk. If so, then I would consider the following:
– Perhaps create a separate brand to use as a vehicle for this initiative. You can still benefit from the skills and expertise your business has built but can also protect the reputation you have earned from your previous work
– Outsource – Use specialists, reduce costs and benefit from their economies of scale. Ensure you agree appropriate exit and penalty clauses to protect your reputation and client base. Many outsource agreements last 3 to 5 years minimum.
Andy Wright
Partner at Deloitte
We have found that businesses successfully leveraging a freemium model tend to consider the following factors:
1. Exposure. Freemium models can provide low cost branding, product exposure and free product testing.
2. Expansion. These models generally allow rapid, low-cost customer base expansion through online traffic generation and friend referrals.
3. Service. Rapid increases in your customer base, however, may impose high demands on server space and customer support.
4. Cost. Upfront and ongoing funding may be required, especially as you could be moving away from a predictable cash income model.
5. Balance. Finding the optimal mix of free-premium products that generates traffic and also leads to premium customer conversion.
6. Conversion. Communicating clearly to your customers the value of upgrading to a premium service.