Welcome!

Agile Computing Authors: Pat Romanski, Shelly Palmer, Glenda Sims, Paul Simmons, APM Blog

Related Topics: @CloudExpo, Agile Computing, SDN Journal

@CloudExpo: Blog Feed Post

Six Ways to Turn Freemium into Premium By @AriaSystemsInc | @CloudExpo [#Cloud]

The conversion rate is all over the boards when transforming free into premium services

“Free” reigns supreme when it comes to online marketing. But “pay” is more profitable to your bottom line. In the popular Freemium world of digital offerings, where free and premium content or services are offered, it’s prudent to consider how you will transition free offerings into paid subscriptions before you actually take that leap.

The conversion rate is all over the boards when transforming free into premium services. Industry averages have been reported anywhere from 0.5% to 5%. When it comes to profit, that’s a huge range.

Customer-IO-Free-To-Converted-Rate

Here are six factors to smartly monetize your products when you make that move:

  1. A smooth transition

For best results, treat customers with respect and communicate upcoming changes from free to subscription or premium offerings. It’s important you don’t make dramatic, unannounced moves. Be sure you provide and outline strong reasons why customers should continue to use your product or service. At the same time, be transparent about premium pricing. Don’t hide pricing details behind a pricing link or tab.

  1. Make your free plan good, but not too good

It’s a delicate balance. You want to give customers enough free and easy to use products to keep them coming back for more. And you want to limit access to even better products that are so awesome folks are willing to pay for the extras. Give away too much, and customers see no reason to upgrade. But if your freemium offerings don’t give them enough, they won’t even bother with you from the start.

  1. Align conversion around features that drive repeat usage

Your first goal should be to build a large audience, then monetize it. Identify what is making users come back time and time again. And leverage that understanding so paid features best serve your clients’ needs and show them why they need your product or service. You should also consider a trial period as it encourages people to opt in and allows them time to become addicted to your product.

  1. Understand metrics

Use Key Performance Indicators (KPIs) to gauge success. KPIs offer great insight into performance and let you see what’s working well or not at all, allowing organizations to see what improvements are needed. KPIs should also be actionable – only measure something you can actually change by creating new actions. For example, measure page views not only too see how the overall performance of your site is doing, but also to gain insight into which pages are performing best. The pages with the most views let you know what features of your free product customers use most or what potential customers are interested in so you can promote those features in a premium version.

  1. CLV and customer billing

Customer lifetime value (CLV) is a prediction of the net profits that can come from a long-term relationship with a customer and can also be defined as the dollar value of a customer. CLV is extremely important in converting free users into long-term paid subscribers. To accomplish this, offer products or services that have enough value users are willing to pay for them. Design your customer billing in a way that makes transactions for premium and recurring offers easy. An effective customer billing system will manage all of your billing activates in one place, at one time, without the need to recreate processes if and when your customer upgrades to a paid subscription.

  1. Privacy and Security

In today’s digital age, concerns over security can slow down, and even stop, conversion rates. Consumers have to trust your security, whether you are offering something for free or requiring payment to access content. Can you guarantee their personal information will be secure and not shared with others? Safe cloud billing is necessary for any business looking to upgrade free services to paid or recurring subscriptions.

Once you’ve enacted these six steps, you still need to market, track metrics and continually improve your site in order to turn freemium customers into premium customers. Keep providing features that make their experience safer, give visitors content they find valuable and are willing to pay for, and make your premium packages worth their while by offering valuable services unavailable to free users.

And be relentless in your strategy to convert freemium users to premium users. Use emails, snail mail if appropriate, and even phone calls to engage your audience.

Marty Orgel

The post 6 Ways to Turn Freemium into Premium appeared first on Recurring Revenue Blog | Aria Systems.

Read the original blog entry...

More Stories By Aria Blog

The Aria blog is the place for news, commentary and discussion on monetization, agile billing and IoT. We cover a variety of topics including forces of market disruption, the Monetization of IoT, billing best practices, trending news and what monetization will look like in the future. Our hope is that you’ll become better informed, be entertained and in turn share your thinking, ideas and comments.

@ThingsExpo Stories
DX World EXPO, LLC, a Lighthouse Point, Florida-based startup trade show producer and the creator of "DXWorldEXPO® - Digital Transformation Conference & Expo" has announced its executive management team. The team is headed by Levent Selamoglu, who has been named CEO. "Now is the time for a truly global DX event, to bring together the leading minds from the technology world in a conversation about Digital Transformation," he said in making the announcement.
"Space Monkey by Vivent Smart Home is a product that is a distributed cloud-based edge storage network. Vivent Smart Home, our parent company, is a smart home provider that places a lot of hard drives across homes in North America," explained JT Olds, Director of Engineering, and Brandon Crowfeather, Product Manager, at Vivint Smart Home, in this SYS-CON.tv interview at @ThingsExpo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that Conference Guru has been named “Media Sponsor” of the 22nd International Cloud Expo, which will take place on June 5-7, 2018, at the Javits Center in New York, NY. A valuable conference experience generates new contacts, sales leads, potential strategic partners and potential investors; helps gather competitive intelligence and even provides inspiration for new products and services. Conference Guru works with conference organizers to pass great deals to gre...
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, demonstrated how to move beyond today's coding paradigm and shared the must-have mindsets for removing complexity from the develop...
In his Opening Keynote at 21st Cloud Expo, John Considine, General Manager of IBM Cloud Infrastructure, led attendees through the exciting evolution of the cloud. He looked at this major disruption from the perspective of technology, business models, and what this means for enterprises of all sizes. John Considine is General Manager of Cloud Infrastructure Services at IBM. In that role he is responsible for leading IBM’s public cloud infrastructure including strategy, development, and offering m...
"Evatronix provides design services to companies that need to integrate the IoT technology in their products but they don't necessarily have the expertise, knowledge and design team to do so," explained Adam Morawiec, VP of Business Development at Evatronix, in this SYS-CON.tv interview at @ThingsExpo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
To get the most out of their data, successful companies are not focusing on queries and data lakes, they are actively integrating analytics into their operations with a data-first application development approach. Real-time adjustments to improve revenues, reduce costs, or mitigate risk rely on applications that minimize latency on a variety of data sources. In his session at @BigDataExpo, Jack Norris, Senior Vice President, Data and Applications at MapR Technologies, reviewed best practices to ...
Widespread fragmentation is stalling the growth of the IIoT and making it difficult for partners to work together. The number of software platforms, apps, hardware and connectivity standards is creating paralysis among businesses that are afraid of being locked into a solution. EdgeX Foundry is unifying the community around a common IoT edge framework and an ecosystem of interoperable components.
Large industrial manufacturing organizations are adopting the agile principles of cloud software companies. The industrial manufacturing development process has not scaled over time. Now that design CAD teams are geographically distributed, centralizing their work is key. With large multi-gigabyte projects, outdated tools have stifled industrial team agility, time-to-market milestones, and impacted P&L stakeholders.
"Akvelon is a software development company and we also provide consultancy services to folks who are looking to scale or accelerate their engineering roadmaps," explained Jeremiah Mothersell, Marketing Manager at Akvelon, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
"IBM is really all in on blockchain. We take a look at sort of the history of blockchain ledger technologies. It started out with bitcoin, Ethereum, and IBM evaluated these particular blockchain technologies and found they were anonymous and permissionless and that many companies were looking for permissioned blockchain," stated René Bostic, Technical VP of the IBM Cloud Unit in North America, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Conventi...
In his session at 21st Cloud Expo, Carl J. Levine, Senior Technical Evangelist for NS1, will objectively discuss how DNS is used to solve Digital Transformation challenges in large SaaS applications, CDNs, AdTech platforms, and other demanding use cases. Carl J. Levine is the Senior Technical Evangelist for NS1. A veteran of the Internet Infrastructure space, he has over a decade of experience with startups, networking protocols and Internet infrastructure, combined with the unique ability to it...
22nd International Cloud Expo, taking place June 5-7, 2018, at the Javits Center in New York City, NY, and co-located with the 1st DXWorld Expo will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud ...
"Cloud Academy is an enterprise training platform for the cloud, specifically public clouds. We offer guided learning experiences on AWS, Azure, Google Cloud and all the surrounding methodologies and technologies that you need to know and your teams need to know in order to leverage the full benefits of the cloud," explained Alex Brower, VP of Marketing at Cloud Academy, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clar...
Gemini is Yahoo’s native and search advertising platform. To ensure the quality of a complex distributed system that spans multiple products and components and across various desktop websites and mobile app and web experiences – both Yahoo owned and operated and third-party syndication (supply), with complex interaction with more than a billion users and numerous advertisers globally (demand) – it becomes imperative to automate a set of end-to-end tests 24x7 to detect bugs and regression. In th...
"MobiDev is a software development company and we do complex, custom software development for everybody from entrepreneurs to large enterprises," explained Alan Winters, U.S. Head of Business Development at MobiDev, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Coca-Cola’s Google powered digital signage system lays the groundwork for a more valuable connection between Coke and its customers. Digital signs pair software with high-resolution displays so that a message can be changed instantly based on what the operator wants to communicate or sell. In their Day 3 Keynote at 21st Cloud Expo, Greg Chambers, Global Group Director, Digital Innovation, Coca-Cola, and Vidya Nagarajan, a Senior Product Manager at Google, discussed how from store operations and ...
"There's plenty of bandwidth out there but it's never in the right place. So what Cedexis does is uses data to work out the best pathways to get data from the origin to the person who wants to get it," explained Simon Jones, Evangelist and Head of Marketing at Cedexis, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that CrowdReviews.com has been named “Media Sponsor” of SYS-CON's 22nd International Cloud Expo, which will take place on June 5–7, 2018, at the Javits Center in New York City, NY. CrowdReviews.com is a transparent online platform for determining which products and services are the best based on the opinion of the crowd. The crowd consists of Internet users that have experienced products and services first-hand and have an interest in letting other potential buye...
SYS-CON Events announced today that Telecom Reseller has been named “Media Sponsor” of SYS-CON's 22nd International Cloud Expo, which will take place on June 5-7, 2018, at the Javits Center in New York, NY. Telecom Reseller reports on Unified Communications, UCaaS, BPaaS for enterprise and SMBs. They report extensively on both customer premises based solutions such as IP-PBX as well as cloud based and hosted platforms.