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 revenue
- Gain 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 customers
- Get practical tips and analytical guidance to successfully implement the freemium model
- Understand the metrics and infrastructure required to measure the success of a freemium product and improve it post-launch
- Includes 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
Chapter One: What is the Freemium Model?
Chapter Two: Analytics as the Heart of Freemium
Chapter Three: Quantitative Methods for Product Management
Chapter Four: Freemium Metrics
Chapter Five: Lifetime Customer Value
Chapter Six: Monetization and Downstream Marketing
Chapter Seven: Virality
Chapter Eight: Optimized User Acquisition
Eric Seufert is a quantitative marketer with a passion for blending real-world problems with large amounts of data, econometric frameworks, and analytical systems. His professional specialty lies in programmatic statistical methods and predictive forecasting in freemium environments.
Eric received an undergraduate degree in Finance from the University of Texas at Austin and an MA in Economics from University College London, where he was an Erasmus Mundus scholar. Eric joined Skype immediately out of graduate school and subsequently held marketing and strategy roles at Digital Chocolate and Wooga, where he is now the Head of Marketing. Prior to graduate school, Eric worked at uShip, the Austin-based marketplace for shipping services.
Originally from Texas, Eric currently lives in Berlin. In his spare time, Eric enjoys traveling and writing.