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The Slow Death of Freemium – And What Comes Next | OpenView Labs

The Slow Death of Freemium – And What Comes Next | OpenView Labs | The MarTech Digest | Scoop.it
Here are four approaches to offset a failing freemium model.

1. Free trial

2. Tailored, hyper specific free products for lead gen

What’s so appealing about free products is the potential for viral adoption and rapid, cost-efficient growth in product usage. Companies like Clearbit have cleverly tapped into those benefits with tailored, hyper-specific free products that appeal to their target buyers without cannibalizing their paid offerings. 

3. Product qualified lead (PQL) engines

One way to achieve this is to sell entry-level versions of a product to individuals or teams within larger enterprises as part of a land-and-expand business model. These offerings create a self-funding customer acquisition engine that allows companies to more seamlessly break into large companies from the bottom up before eventually selling an enterprise-wide deal.

4. Anti-lean startup approach

Rather than starting out with a minimum viable product, getting it out the door quickly and then monetizing later, some companies are reversing the playbook and becoming “anti-lean” startups. These companies, including AI personal assistant x.ai, take a more thoughtful and ambitious approach to building their products. The happy consequence: their products solve a clear need, stand apart from alternatives and attract customers that are willing to pay for them. 
CYDigital/marteq.io's insight:

#4 is only sustained via funding or elongated bootstrapping. Probably the model used by entrepreneurs on their 2nd or 3rd company.

 

MarTech is the best tool available to bridge the gap between Sales and Marketing. Contact us to see how. #MarTech #DigitalMarketing

 

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How to Use the Word Free in Your Marketing Without Losing Credibility - Crazy Egg

How to Use the Word Free in Your Marketing Without Losing Credibility - Crazy Egg | The MarTech Digest | Scoop.it

marketingIO: One Source for All Marketing Technology Challenges. See our solutions

CYDigital/marteq.io's insight:

And, of course, the use of the word free in email is a huge SPAM signal.

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SaaS Companies New Business From Free Trials and Freemium - Marketing Charts

SaaS Companies New Business From Free Trials and Freemium - Marketing Charts | The MarTech Digest | Scoop.it
While 37% of respondent companies do not use freemium offerings or free trials to attract new business, one-third of those who do generate a majority of their new business from the model. That’s according to a study from Totango, which also finds that more companies are placing a high emphasis on new customer acquisition than on customer retention or upsells. Among the metrics identified, the largest share of respondents track unique website visitors (78%), with churn (74%) close behind. With respect to churn, the report notes that 35% of companies see annualized levels higher than 10%, while 31% are in the 5-10% range and the remainder seeing levels between 0 an 10%. Churn rates tend to be higher for high-growth companies.


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CYDigital/marteq.io's insight:

You have to combine the no business and very little business (<10%), and you can conclude a 50-50 shot at generating business from this strategy.

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