Sunday, October 31, 2010
Management Strategy:Free Plus Premium=Freemium Strategy, Part-II
In the change management concepts we come across many new basic fundamentals of Freemium.
This particular strategy has been very up coming strategy which can be used in new product position, branding, customer acquisition, up selling ,cross selling and of course the customer loyalty.
Many a time customers are skeptical about the new product and services, rather un aware about the usages of the new product and services.
1. The unique strategy is to give away some of your good product and services as a FREE to your new customers or even existing customers.
2. This strategy is a deliberate strategy by which you advertiser about your services or products. The new prospects/customers get a feel and gang about your products and services. They can give a feed back after the usage of the product and services of the new product or services.
3. The change strategy is about creating awareness in the mind of the customers. It’s a Use-Feel-Get Happy strategic business model for change management for the firms.
4. This can also be a strategy for crowed sourcing; you make a feel good proposition to all your customers for the services and the products that you innovate.
5. Particularly in many Blue Ocean start ups these sort of freemium strategy can be used.
6. In my point no 3, I talked about feel good factor, this is easier said than done. As usual customers now days are very well aware and informed about the availability, features, pricing of the products and services and value it can add to them. Playing with customers sentiments rather physiological selling are part and parcel of modern business strategy.
7. In today’s highly competitive business world and technological innovation happening rapidly coupled with globalization, you need to have new customers across the world, rather we all looking for new customers around the world to get in to the scalability of our business model. Freemium can work wonders in these cases.
8. “Inside-Out” it’s all about a me-too products, freemium works very successfully and if you have any bugs you can fix them and go for “Outside-In” products and services.
9. If a tiny fraction of the customers buy’s my “PREMIUM “product at a premium price, the strategic business model is through.
10. So my business model has to be such that low break even points must be kept in mind.
Hope you enjoy reading about the freemium business model strategy. In the contemporary management concepts many firms are adopting these concepts. In one my earlier post I have written about this concept. There will be another post on this Freemium concept..