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Pricing a "Freemium" Product

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Business Challenge

Many new services launch with a "freemium" model - attract users to a free but limited version, and then encourage them to adopt paid tiers of service as their needs expand and the product's benefits become more obvious. A client of ours - a developer of business collaboration software - wanted to know the sweet spot for charging, and to understand which expanded features and functions it should offer to encourage upgrades, from free to paid, and then from paid to "paying even more."

Our Approach and Successful Results Implementation

Through a discrete-choice method and a thoughtfully co-designed set of benefits and prices we provided them with the fuel they needed to develop just such pricing plans.

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