Dropbox Strategy & Recommendations

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DROPBOX
Strategy & Recommendations

Dropbox is a web storage services that can share files and synchronize them between different PCs. Dropbox provides you with a free 2GB storage capacity, and users can go up to 5GB at most through inviting others to use this service (256mb for every friend who installs dropbox). Users can get 50 GB for a $ 100 annual subscription and 100 GB for $ 200 annual subscription. One of the most important features in Dropbox is that it can synchronize your folders. After installing Dropbox software, it will create a folder named Dropbox on the user’s PC where every file afterwards stored can be synchronized. Moreover; Dropbox can synchronize your MSN chat content and this can be achieved between the different places chat content such as your home, & work office. (1)

The aim of dropbox is to make users always feel like they are on their home computer. The last feature in dropbox is its version control system where every time a user changes a file in his/her dropbox folder, automatically & on the spot, the old version is backed up. Moreover; you can look at a file’s history and restore an old version. Noting that the old versions of files don’t use up any of your free space. (2)

It is normal that every business wants free positive publicity, so the key here is to encourage people to talk about your company and its products. Dropbox has been able to do that and to grow their users from 100,000 to more than 4 Million users in around 18 months. All of that was achieved without having to spend any penny on advertising and without having the proper experience to advertise in the first place.

There are mainly 5 reasons for Dropbox's Word-of-Mouth Marketing or vial marketing Success: 1. Have an Amazing Product: (3)
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When dropbox was initially launched, the market was heavily competitive with dozens of cloud storage companies that were battling for users. Dropbox then realized an important fact that most of the users were not happy with the services and products available by the competitors. The main problem is that the other products didn’t work all the time or worked with some file errors. So their success story would start by creating a products that is simple & that would work well all the time in order to let customers talk about their great product. * (1): Introduction to Dropbox, accessed January 2011, <http://www.shoppingdict.com/2010/01/dropbox-advanced-skills-introduction.html> * (2): Introduction to DropBox, accessed January 2011, <http://adrusi.com/mac/introduction-to-drop>

* (3): 5 viral marketing lessons from Dropbox, accessed January 2011, <http://blog.hubspot.com/blog/tabid/6307/bid/5956/5-Viral-Marketing-Lessons-From-Dropbox.aspx#ixzz1BemWINFC>

2. Build Your Community Before You Even Have a Product: (3) Dropbox realized that they don’t have to have a product fully launched so that people would start talking about it. They tested their landing pages and a private beta program in order to generate interest in their product and start building a community while the product is still in its development process. By giving users the privilege to have Dropbox earlier than others gave them a sense of ownership and gave Dropbox the opportunity to collect fairly valuable feedback on their product to make it better. 3. Questioning Best Practices: (3)

Dropbox’s public launch plan was pretty much like any other launch plans. They planned to use dome pay-per-click advertising, launched their product through conferences & used the service of some public relation firms. All of this sounds smart & ordinary, but that didn’t work for Dropbox. The reason was that the cost per acquisition was too high compared to the keywords they were bidding on which were very expensive. Even though the tradition launch wasn’t allowing them to grow as planned but they realized that they are still...
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