Freemium Economics

Freemium is a business model in which the basic product is provided free of charge and payments are only required on advanced and more complex options and features. It is a rapidly growing and developing paradigm, part of the range of economic models that have developed in these early post-capitalist days. As such, this introduction to freemium model and its concepts is an important book, of use to a range of professionals, from management and sales people to IT professionals and engineers. Opening with a general description of the freemium model and an overview of analytical techniques and the interrelation between freemium and big data, we move on to descriptions of quantitative methods to be used with the model, and miscellaneous metrics to organize its functionality and determine the viability of a particular product. Further chapters discuss monetization, growth and the concept of lifetime customer value, which, if not unique, is certainly more important to this model than to many others. As a part of a vague series from Morgan Kaufmann which includes other books on Big Data, Information Management and Data Mining, this volume will be useful as a part of an integrated business model for future-looking businesses. Annotation ©2014 Ringgold, Inc., Portland, OR (protoview.com)
Freemium Economics presents a practical, instructive approach to successfully implementing the freemium model into your software products by building analytics into product design from the earliest stages of development.Your freemium product generates vast volumes of data, but using that data to maximize conversion, boost retention, and deliver revenue can be challenging if you don't fully understand the impact that small changes can have on revenue. In this book, author Eric Seufert provides clear guidelines for using data and analytics through all stages of development to optimize your implementation of the freemium model.Freemium Economics de-mystifies the freemium model through an exploration of its core, data-oriented tenets, so that you can apply it methodically rather than hoping that conversion and revenue will naturally follow product launch.By reading Freemium Economics, you will:Learn how to apply data science and big data principles in freemium product design and development to maximize conversion, boost retention, and deliver revenueGain a broad introduction to the conceptual economic pillars of freemium and a complete understanding of the unique approaches needed to acquire users and convert them from free to paying customersGet practical tips and analytical guidance to successfully implement the freemium modelUnderstand the metrics and infrastructure required to measure the success of a freemium product and improve it post-launchIncludes a detailed explanation of the lifetime customer value (LCV) calculation and step-by-step instructions for implementing key performance indicators in a simple, universally-accessible tool like Excel