Freemium product strategy
Develop a strategy to introduce new users to the value of your product. Encourage people to subscribe to your SaaS app by showing them features they want to pay for. Create conversion funnels to drive user subscription.
Provide valuable UX to convert users into customers
Give your target audience an opportunity to try your product before paying. A great way to drive subscriptions is presenting a great user experience to get users to the value of your app. Let people test drive your product to learn if it is right for them.
Build confidence in your app with no-risk to users
Let your investment in user experience go further. By using your product as a sales tool to close new deals. Demonstrate your product value and how it fits into your user's workflow. Create a new customer experience where users see the value of your product.
Deliver user value and learn how to do more
Test your product offering with your target audience. Learn what moves your users to convert into paid subscribers. Use freemium product strategy to test, refine, and deliver on business goals. Go beyond delivering a great UX, by defining how to package and sell better.
An introduction into freemium product strategy
What does Freemium mean
Let your customer base test your goods or services without making an upfront investment. Create a free tier to deliver basic features, and deliver value with essential features. Drive revenue through premium benefits from subscribing to premium experiences.
In other words, create a free tier to provide user value, where people can subscribe to unlock the full benefits of your product. Include self-service experiences in your types of revenue streams.
Why freemium works
Freemium is an investment into your software company's user experience. Focusing on how to get users to value. Guiding people to use your core platform, and driving the desire for more out of premium features.
By investing in your new-user experience, you have an opportunity to set the tone for your product. Showing users what to expect, and learning what they find valuable to invest in. Unlock a new revenue source, where your product acts as an automated sales team.
Provide a free tier / free trial to gauge user interest
Measure feature engagement to better understand what features drive user subscription
Create product roadmaps informed by user behavior, to reduce the number of people lost in trial
Create a sustainable revenue stream while building a community
Your free experience becomes a powerful marketing tool, while premium features drive your business goals. Freemium product strategies are an efficient business model for growth.
Is a freemium product strategy right for your business?
Freemium is perfect for SaaS products and services. Your product is generating revenue by crafting a tailored UX for your target customer. Strengthen your marketing strategies by building a strong community.
Learn from your user-base, and try out different freemium product strategies. Aim to convert 2-5% of free users into paying customers.
What are some examples of successful Freemium strategies?
Spotify
Spotify is the world's largest music streaming platform. With over 574 million active users, and 226 million paying subscribers as of 2023.
Spotify offers people with an enticing user experience. Marketing unlimited songs and podcasts with occasional ads, no credit card needed. A win/win scenario for the business, since they either make ad or subscription revenue from listeners.
Dropbox
Dropbox is a cloud-based file storage and sharing platforms, letting users store, sync, and share files
Dropbox offers a free tier with 2GB of storage and limited sharing. By sharing with new customers, existing users got more storage. Using referral marketing as an effective way to motivate users. Paid tiers offer more storage, security features, and more.
LinkedIn is a professional networking site, offering a suite of services for individuals and businesses alike.
People are able to create a free profile to connect with their professional network. By subscribing to LinkedIn premium, people unlock the ability to engage with people they don't know personally. Professional organizations can pay to see who is viewing their page, and advanced sales features.
Why invest in a freemium business model
Your product becomes more than what you're selling. With a freemium model, your organization delivers UX that sells itself. Giving you insights into your user's behavior, and data-driven outcomes.
Give your target market a better new-user experience, and deliver UX that converts. Our team has experience with early-stage and growth-stage startups. We deliver free experiences that motivate users to become long-term paying customers.
What we offer
User research
Understand your target audience's needs, behaviors and motivations. By gathering data about your users, we can design products that meet their needs. Learn how people use your product to make it better, with real user feedback.
Product strategy
Create a high-level plan for achieving goals with your product. Identify your target audience, value props, and how to market each step of your product lifecycle. Define the vision and direction of your product's development and success.
Information Architecture
Organize your application's content in a way that is easy for your users to understand. Create a user-friendly way to navigate your app or website. IA design aims to improve how users achieve goal outcomes in your UX.
User Interface Design
Build a user-friendly and fun product for your target audience. We focus on every visual detail to deliver a branded user experience. We bring your visual design and interactive design together into a unified UI design.
Prototyping
Test your ideas with a proof-of-concept. We take UI design and product needs to create clickable product prototypes. With a high-fidelity prototype you can test, refine, or build your ideas with confidence.
Design workshops
Bring your team together to solve design challenges. We provide a structured approach to generating ideas with your team. Using concepts to make design decisions, and harnessing your team's creativity to make your user experience better.
