3 Secrets for Mastering the Art of the Freemium

Gráfico Freemium

Companies like LinkedIn and YouSendIt have turned freemium into a hugely successful model. What do they know that you don’t?

Escribe Sean Jacobsohn para Inc.com, recogido en la web de CEDE–Freemium: Entrepreneurs love it. And they hate it. (Or, to borrow a word-mashup like freemium itself, they lovate it.)

But love freemium or hate it, most companies that operate software-as-a-service businesses can’t live without it, and they spend a great deal of their time figuring out how to manage the model–particularly the ever-so-delicate process of transitioning customers from free service to premium payments.

 That’s what we learned last month, when we at Emergence Capital convened over 50 sales and biz-dev executives from our portfolio companies and other top SaaS providers. Here are some key points from those discussions:
1. Analytics are your friend

Powerful data can help you customize your sales strategy. If you’re committed to the freemium model, analytics will tell you how to improve your service, what to sell, when to sell, and even who to hire. 

 According to David Obrand, Chief Customer Officer at Yammer, “When you start with freemium, you don’t get to pick your customers. Analytics have to drive decision-making. Once you see what resonates with customers, then you can build coverage. As you develop a feel for your growth trends, you can hire ahead of the curve as you learn more about who is using your product.”

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