Driving Growth using Freemiums and Free-trials in Product-led Marketing

The best part of going through a new course is seeing the learnings evolve all around us! It eventually makes you feel that there were things around you that you never noticed. Something like playing a mobile game and an ad popping out to give you an experience about how another game is engaging or another app that can solve one of your daily challenges. Being a believer in a Data-led Product Management, it is imperative to understand how one can place the product at the center of all job functions and work towards providing the best experience for the customer. This led to my recent perusal of the Product-led Certification by Pendo, which provides an End-to-End perspective of the Product-led approach in practice.

One of the significant aspects of any product is to derive growth by focusing on Product-led marketing. Freemium and free trials are two essential tools for product-led product management. They allow businesses to attract and convert new customers, gather valuable feedback, and increase customer retention. These pricing strategies can be particularly effective for companies trying to break into a new market or launch a new product, allowing customers to try the product before committing to a purchase. The objective here is to attract potential customers and convert them into paying customers after seeing value in the product. So, what are Freemiums and Free-trials? Let's understand the experience that led me to come up with this article.

As an avid football fan, there is always an urge to try a new football game on mobile. While exploring a new one, the most annoying part of having an in-game ad became a nostalgic one while I was offered battles between two tanks. Remember, remember the friendly Pocket Tank Delux in the early 2000s? Many would remember it as one of the first games we played when flash/short/mini games were on the rise. This in-game ad was part of the promo where this game-development company allowed users to try and battle one round, which would interest them in downloading the app and getting the same experience as active users. The beauty of giving an early experience without even downloading the app triggered a flurry of thoughts on how revolving around the value of a product can trigger such decisions where customers proceed with being paying customers just by the initial experience. So, let's understand what freemiums and free trials are all about.

Freemium is a pricing model in which a business offers a basic version of its product or service for free while charging a premium for advanced features or higher service levels. In many cases, a software company often offers a free version of its software with limited features while charging a fee for access to premium features or technical support. On the other hand, free trials allow customers to try a product or service for a limited time before deciding whether to purchase it. These trials are often offered for software products, online services, and subscription-based products. Free trials and freemium provide a number of advantages for product-led product management. These tactics can benefit companies in the following ways:

1. Attract new customers: Providing a free trial, or a free version of a product is an effective strategy to draw potential clients who might not be eager to pay upfront for a good or service. This may be particularly helpful for companies looking to enter a new market or introduce a new product.
2. Convert free users into paying customers: Businesses may introduce their products to prospective buyers by giving away a limited set of features of their products for free. As they may be more inclined to upgrade to the premium version once they have seen the product's value, this can turn free users into paying customers.
3. Collect valuable feedback: Businesses?may?get?user?input?from?a?large?user?base?via?free?trials?and?freemiums.?This?is?crucial?for?businesses?striving?to?enhance?their?offerings?or?find?new?features?or?enhancements?to?provide.
4. Increase customer retention: Businesses may allow clients to experience their products before purchasing them by giving them a free trial. Customers are more likely to continue using a product they have previously committed time and effort to master, which may assist in enhancing customer retention.

It wasn't like these models weren't around, but sometimes, it often requires us to look beyond and see how these models are at play. In conclusion, we are surrounded by such offers where we are tempted to go for a complete paid version. And the best part is that one doesn't have to go too far. Just look towards the top left corner of the screen, and you will see LinkedIn, which tempts us to go for a premium version. There are ample examples to quote in the demographic aspect, from finding a better job to managing business needs to even finding love (if you wish to go for a dating app subscription like Tinder Gold)! Options are endless ??! But, the approach of building a product while keeping it at the center does wonders where a standard strategy of Product-led Marketing through Freemiums and Free-trials drives growth and ensures higher conversion of free users into full-time paying customers. Who knew that such strategies surround us all the time!