freemium-strategy

Vocabulary Word

Definition

A 'freemium strategy' is a business tactic. It's when a company offers a product or service for free but charges for advanced features or functionalities. It's a blend of 'free' and 'premium'.

Examples in Different Contexts

In marketing, a 'freemium strategy' is used to attract customers by providing free access to a product's basic features while reserving more advanced features for paying customers. A marketing manager might explain, 'Our freemium strategy focuses on converting free users to paid subscribers by showcasing the value of our premium offerings.'

Practice Scenarios

Marketing

Scenario:

We've had great success in acquiring new users, but we need to strategize our campaigns towards premium conversions.

Response:

We should consider refining our freemium strategy by using data-driven campaigns for better personalization to encourage premium uptake.

Startup

Scenario:

This freemium model has given us a lot of users, but we might need to revise our pricing plans to sustain and remain profitable.

Response:

It could be beneficial to modify our freemium strategy to have more affordable premium packages to appeal to a wider audience.