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Freemium Is About Marketing & Innovation, Not Pricing | Inc.com

The only gate that’s in place is the number of app users, up to 1,000, which speaks more to the value of our solution in helping them grow rather than some arbitrary messaging volume. And once they reach that limit, there are low-priced monthly plans they can adopt without worry that their investment in our solution will evaporate. Most importantly, we’re providing something valuable — our service — upfront, which is a great way to start a relationship.

If you offer a free edition of your product, you’re likely to get a lot of takers. All those signups, even the ones that won’t become paying customers, can teach you a lot about how to improve your product.

For example, we’re spending a lot of time improving the onboarding experience. Why? We typically offer account management to paid customers to help them get the most out of our product. But we can’t do that with tens of thousands of non-paying customers. That has forced us to invest in more scalable ways of getting users set up, like dramatically improving our in-product help, UI, and onboarding emails.

This month marks the 16-month anniversary of Engage Starter Edition, and more than 17,000 businesses from more than 120 countries have signed up. In addition, hundreds of these customers have since upgraded to paid accounts and adopted additional solutions as their app audiences and business needs have grown.

Freemium is often referred to as a pricing model. And while there are certainly important aspects of freemium related to how it’s priced — most notably, striking the right balance between paid and free features — its value as a marketing and innovation strategy is even higher. That’s why we’re building more and more of our business around it.

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Freemium Is About Marketing & Innovation, Not Pricing | Inc.com.

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