Freemium Or Free Trial?
The term “free” has always made us happy and attracted, although there is always a tinge of fear of getting bluffed. These days, people are distracted perpetually. Whether it is a start up or an established company, customer satisfaction has always been a primary task. Various models and ideas have made the business rise and fall. The following two, are worth discussing:
Freemium:
Freemium is a free plan which has a limited access for the user. It has a limitation in usage but no limitation in the duration of use. It is a free plan with the option of premium plan, so as to upgrade according to the growth.
Free Trial:
Free Trial is a plan that gives a limitation to the time and not to the service. Free trial ends at some point of time and companies generally charge at the end of the trial.
A company can increase its overall sales by offering a free trial. But sometimes it’s really depressing to find how the human mind works. As soon as the customers find that a product is for free, they start categorizing the other free products over internet. The customer’s psychology might tell that the product doesn’t cost them that are the reasons why they are selling it for free.
Thus over time, it is difficult to convert a customer from free serviced customer to a paying customer.
Freemium models should work like this:
The company store data at a very low cost. That make them offer the product for free, and you might fall in love and start using it in a daily process. But one day suddenly you noticed that you are out of space. At this point, you can’t afford to part with the company because you are dependent on it. So your next step is to punch in the credit card info as the strife to upgrade your plan is gone. This is how the freemium model can be successful for a company.
But if the service is down, then customers will be least bothered to come back again and use the service you provide.
Market Quotient keeps rolling with its various business models. It searches for the various opportunities to reach to different sectors of the industry. Innovation and creativity has always kept a business awake. Market Quotient has always followed this strategy to keep oneself awake. To know more about us and our services, feel free to drop in at contact@marketquotient.com
