Freemium
DOWNLOAD
Download Freemium PDF/ePub or read online books in Mobi eBooks. Click Download or Read Online button to get Freemium book now. This website allows unlimited access to, at the time of writing, more than 1.5 million titles, including hundreds of thousands of titles in various foreign languages. If the content not found or just blank you must refresh this page
Freemium Economics
DOWNLOAD
Author : Eric Benjamin Seufert
language : en
Publisher: Elsevier
Release Date : 2013-12-27
Freemium Economics written by Eric Benjamin Seufert and has been published by Elsevier this book supported file pdf, txt, epub, kindle and other format this book has been release on 2013-12-27 with Business & Economics categories.
Freemium Economics presents a practical, instructive approach to successfully implementing the freemium model into your software products by building analytics into product design from the earliest stages of development. Your freemium product generates vast volumes of data, but using that data to maximize conversion, boost retention, and deliver revenue can be challenging if you don't fully understand the impact that small changes can have on revenue. In this book, author Eric Seufert provides clear guidelines for using data and analytics through all stages of development to optimize your implementation of the freemium model. Freemium Economics de-mystifies the freemium model through an exploration of its core, data-oriented tenets, so that you can apply it methodically rather than hoping that conversion and revenue will naturally follow product launch. Learn how to apply data science and big data principles in freemium product design and development to maximize conversion, boost retention, and deliver revenue Gain a broad introduction to the conceptual economic pillars of freemium and a complete understanding of the unique approaches needed to acquire users and convert them from free to paying customers Get practical tips and analytical guidance to successfully implement the freemium model Understand the metrics and infrastructure required to measure the success of a freemium product and improve it post-launch Includes a detailed explanation of the lifetime customer value (LCV) calculation and step-by-step instructions for implementing key performance indicators in a simple, universally-accessible tool like Excel
How Freemium Gets Consumers To Pay A Premium
DOWNLOAD
Author : Nishant Mishra
language : en
Publisher:
Release Date : 2018
How Freemium Gets Consumers To Pay A Premium written by Nishant Mishra and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2018 with categories.
We consider the optimal pricing of a freemium product offered by a firm to consumers who are loss-averse with stochastic and endogenous reference points, and the role of the consumers' surprise on their purchase decision about the premium version, after experiencing the free version. We formulate the problem as a multistage Stackelberg game and investigate its equilibrium by determining the consumers' optimal purchase plan, the firm's optimal price to charge for the premium version, and the optimal quality level that the firm sets for the premium version. We show that a consumer becomes more willing to buy the premium version if he becomes somewhat dissatisfied to realize that the free version's value is lower than his expectation. This result goes against the common advice by practitioners that the firms must under-promise and over-deliver to ensure higher profitability. We show that the somewhat-dissatisfied consumer is not only more willing to buy the premium version, but he also could pay a price higher than its realized value. This is a result that does not occur when the consumer is satisfied or entirely dissatisfied with the free version. It also explains the real phenomenon in which many consumers run up massive bills in using freemium products. We show that, increasing the premium version's quality could cause the firm to optimally reduce its price, which is in contrast to our common quality-price intuition: a higher quality product should be sold more expensively. When the quality, price and the consumer's purchase plan are jointly optimized, we show that, the optimal price can increase in the order quantity. This behavior counters the common expectation that when the firm has more available units it should sell them cheaper to avoid the risk of unsold inventory.
Freemium
DOWNLOAD
Author : 50minutes,
language : en
Publisher: 50 Minutes
Release Date : 2015-09-02
Freemium written by 50minutes, and has been published by 50 Minutes this book supported file pdf, txt, epub, kindle and other format this book has been release on 2015-09-02 with Business & Economics categories.
Attract more customers and boost your sales! This book is a practical and accessible guide to understanding and implementing the freemium model, providing you with the essential information and saving time. In 50 minutes you will be able to: • Understand the different types of free offers given to customers and how they can be beneficial to a business • Implement the freemium business model into your business to grow your customer base • Offer a premium product with concrete improvements and additional services to increase your premium conversion rate ABOUT 50MINUTES.COM | Management & Marketing 50MINUTES.COM provides the tools to quickly understand the main theories and concepts that shape the economic world of today. Our publications are easy to use and they will save you time. They provide elements of theory and case studies, making them excellent guides to understand key concepts in just a few minutes. In fact, they are the starting point to take action and push your business to the next level.
Designing Freemium With Usage Limitation
DOWNLOAD
Author : Tanet Kato
language : en
Publisher:
Release Date : 2020
Designing Freemium With Usage Limitation written by Tanet Kato and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2020 with categories.
This paper focuses on the freemium paradigm that imposes a usage limit on free users and allows for paying users unlimited usage. We formulate a two-period model that incorporates the responses of users who are heterogeneous in both their valuations of marginal usage and total usage. Two freemium strategies with distinct market-coverage approaches emerge. The first strategy is an aggressive strategy that attempts to acquire the whole market, while the second strategy selectively targets heavy users. Optimal strategic decisions are derived for both freemium strategies and benchmarked against a conventional subscription strategy. We identify the strategic dominance criteria and examine the benefits of freemium strategies. The degree of intolerance towards insufficient usage and the proportion of high-valuation users determine which strategy is dominant. The need to alleviate users' inconvenience drives the free usage limit higher and thus weighs against the performance of freemium strategies. In such circumstances, a more aggressive freemium strategy that offers generous free usage at a high price underperforms a selective variant that offers modest free usage and a lower price. The proportion of high valuation users determines the optimal strategy between a selective freemium strategy and a conventional subscription strategy. The latter outperforms if the proportion of high-valuation users is either very small or very large. Additionally, this study discusses the appropriate level for the conversion rate by showing that a firm should expect a lower conversion rate when implementing an aggressive freemium strategy.
Freemium As An Optimal Strategy For Market Dominant Firms
DOWNLOAD
Author : Zijun (June) Shi
language : en
Publisher:
Release Date : 2018
Freemium As An Optimal Strategy For Market Dominant Firms written by Zijun (June) Shi and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2018 with categories.
Despite its immense popularity, the freemium business model remains a complex strategy to master and often a topic of heated debate. Adopting a generalized version of the screening framework à la Mussa and Rosen (1978), we ask when and why a firm should endogenously offer a zero price on its low-end product when users' product usages generate network externalities on each other. In the standard M&R model without network effects, freemium never emerges as optimal and the firm always chooses the efficient price point for its low-end product. We show that even with network effects, freemium is typically not optimal. When network effects are identical across products ('symmetric'), the firm has greater incentive to expand its network size and may find it profitable to sell to the low-end customers. However, this does not lead to freemium as an equilibrium strategy. Instead, the firm should offer a low-end product to attract customers, while keeping its price positive. Freemium can only emerge if the high- and low-end products provide different levels of ('asymmetric') marginal network effects. In other words, the firm would set a zero price for its low-end product only if the high-end product provided larger utility gain from an expansion of the firm's user base. In contrast to conventional beliefs, a firm pursuing the freemium strategy might increase the baseline quality on its low-end product above the "efficient" level, which seemingly reduces differentiation.
Optimizing Freemium Business Model
DOWNLOAD
Author : Yunke Mai
language : en
Publisher:
Release Date : 2023
Optimizing Freemium Business Model written by Yunke Mai and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2023 with categories.
We study the optimal dynamic operating policies of a freemium service provider throughout its lifetime. We adopt an optimal control framework and a modified Bass diffusion model, and analyze two special models motivated by prominent practical examples before numerically evaluating a general model. In all models, the optimal operating policies exhibit a threshold structure such that the service provider prioritizes growth in early stages and may not introduce premium subscription until after amassing a critical user base. The optimal policies of the special models also exhibit their distinct characteristics. We then show that our findings are robust when considering the provider's liquidity constraints, and that the freemium model can significantly outperform the ad-supported free service model. Our findings highlight the flexibility and potential of the freemium model, and provide guidelines for service providers adopting this business model.
Designing Freemium
DOWNLOAD
Author : Clarence Lee
language : en
Publisher:
Release Date : 2017
Designing Freemium written by Clarence Lee and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2017 with categories.
The Freemium business model, commonly used in digital products, has both a perpetually free but limited version and a premium version with enhanced features that requires a fee. These firms often have a referral program in which current customers get additional benefits (e.g., extra storage space) for referring friends to the firm. While this strategy allows a firm to acquire large user base at low cost, it needs to be balanced against revenue, and we examine how attractive a referral offer should be in order to encourage users to bring in new customers without dissuading them from upgrading. Since the majority of freemium customers are “free,” i.e. they do not pay, it is crucial to understand their long run value, which results from their future upgrades or upgrades by those they refer. We develop an empirical model from microfoundations, including both discrete and continuous choices, and investigate the dynamics of consumers' plan choice, usage, and referral behavior using a novel panel data set from a leading cloud-based storage service. Using counterfactual analysis, we determine the optimal balance of growth and monetization, and quantify the value of free customers.
Freemium Killer Apps
DOWNLOAD
Author : Joost Rietveld
language : en
Publisher:
Release Date : 2020
Freemium Killer Apps written by Joost Rietveld and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2020 with categories.
Freemium products must attract a disproportionately large user base to capture value, but they are often “hit or miss”. Which freemium products are best positioned to becoming a killer app, and under what conditions? Drawing on freemium's distinguishing features of low adoption barriers and rapid diffusion via word-of-mouth, we argue that freemium products that incorporate social functionality and are released on a platform with a large installed base have a higher probability of becoming a killer app than freemium products without such functionality and similar products that are paid. We test our hypotheses on a sample of 9,700 products released on Steam, the market-leading distribution platform for digital PC games. Our findings contribute to the literatures on business models, network effects, and digital strategy.
Empirical Study And Business Model Analysis Of Successful Freemium Strategies In Digital Products
DOWNLOAD
Author : Pronitha Mysore Shankarananda
language : en
Publisher:
Release Date : 2015
Empirical Study And Business Model Analysis Of Successful Freemium Strategies In Digital Products written by Pronitha Mysore Shankarananda and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2015 with categories.
"Freemium" has become a popular business model for digital and internet startups to acquire customers quickly and monetize with limited marketing resources. In this model, basic functionalities and features of the product are offered free of cost and advanced features are monetized. Typically firms rely on the size of the free user network since the conversion rate in these models is very low (2%-7%). This thesis analyzes successful business models and uses predictive analytics on a dataset from a freemium product to determine critical success factors. Empirical study is conducted on 79,033 total users and 4,217 premium subscribers of Last.fm, a Musica as a service (MaaS) product which employs the freemium pricing model, to predict the probability of a user being a subscriber. Classification and regression trees (CART) with k-fold cross validation is used to model on the training data and is validated on the test dataset to understand the influence of demographic, engagement, retention and social factors on subscribers. Five successful premium companies Linkedln, Zynga, Evernote, Spotify and DropBox are studied to understand the company background, value proposition and freemium model. The analyses was based on secondary case studies and information. The CART model designed yielded an accuracy of 74.84%, sensitivity of 67.6%, false negative rate (FNR) of 32.4% and Area under the curve (AUC) of 0.7474937. On fine-tuning the penalty matrix, FNR is reduced to 22% and sensitivity increased to 78% with an accuracy of 65.8%. The empirical study showed that age (demographic factor), playcount (engagement factor) and registration unixtime (retention) were the most significant variables in predicting outcome. Study of successful firms showed that freemium is not a one-size-fits-all strategy for internet startups. The strategy needs to be crafted specifically for each firm. Many factors go into formulating this plan including a strong product catalogue, focused customer acquisition engine, referrals, social and community features, continuous testing, data driven approach and commitment to continuous innovation.
Freemium Business Models As The Foundation For Growing An E Business Venture
DOWNLOAD
Author : Franziska Günzel-Jensen
language : en
Publisher:
Release Date : 2016
Freemium Business Models As The Foundation For Growing An E Business Venture written by Franziska Günzel-Jensen and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2016 with categories.
In e-business freemium business models have become legitimate. However, current research provides little insight on how the free and premium offering should be employed to lead to growth and success in the long run. The presented research aims to fill this gap by investigating how the property 'free' was employed in young entrepreneurial ventures' business models in the initial life-cycle stages - opportunity recognition, market entry, and market exploitation. We find that various forms of freemium business models are employed through the initial life-cycle stages of a new venture for reasons of trial-and-error, learning, exploration, legitimization and resource acquisition. A freemium business model can also serve as a nascent business model, though without a sustainable monetization component, for finding a sustainable business model through a series of dynamic adjustments. With our findings we contribute to the business model literature in three ways: First, our empirical findings show the many-sidedness of the component 'free' in freemium business models. Free users are of importance for network building, exploration and exploitation and growth over time. Moreover, free users enable directly and indirectly further resource acquisition. Second, while previous literature has taken a static perspective, we contribute by illustrating the dynamic process of strategic business model design for growth. Finally, we introduce the concept of the nascent business model which is new to the literature.