More efficient than the premium

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By collecting this information, you generate insights not only for communication actions, at a time when knowing your persona makes a big difference, but also to identify which premium features may be more attractive to each user.

By offering only a small sample of what the user can use and then limiting its use, you have a shorter time window to introduce the product and better understand what your target audience really wants. Therefore, the freemium model is more efficient than the single model based on offering exclusively premium products or services .

In addition to the benefits of bringing your brand panama phone number list closer to the consumer - which can facilitate loyalty - and creating more efficient marketing actions, it is easier to achieve a friendly and easily recognizable conversion of value. Do you want an example? From the feedbacks , you can further reduce your CAC (Customer Acquisition Cost) and, consequently, increase the ROI (Return on Investment) of your marketing and sales efforts.

What are the main risks of the freemium model?
The main risk of freemium is not justifying the investment in the business. This can happen for several reasons, but mainly due to the factors we list below.

Attracting bad fit clients
The first and biggest problem with freemium is that the model has the potential risk of attracting bad fit clients, those who do not correspond to your strategy because they have characteristics, expectations and needs different from those identified in your persona.

When a company offers something for free, many users may accept the offer simply because of that feature and not because the product or service can satisfy any specific need.

This event does not justify the qualification of leads, since no investment will have a return, no matter how large or effective it is, if the client does not fit the company.

In the long term, the biggest problem with the strategy will be not generating a source of income that guarantees the sustainability of the business. Even if the user base is large, the number of potential customers who will move through the conversion funnel may not be enough.