How to Turn your Freemium Clients into Paid Subscribers

A recent study found that over half (53%) of mobile app developers offer freemium models, allowing new customers to try a free version of their product without commitment. But while the increased flow of interested users is exciting, many companies struggle to convert these freemium users into paid subscribers. Here are three strategies to encourage your users to make the investment! 

Limit the features offered to free users, so they realize they need to upgrade for a better experience.

Here’s a great example: 90% of grantmaking foundations don’t have websites, and that’s why Candid and Foundation Directory Online (FDO) offers access to an robust of over 242,000 organizations. For professionals new to the fundraising sector, FDO offers Quick Start, where a user can search IRS Forms 990 and 990-PF for funders at no charge. Sounds great, right? 

Very quickly, however, fundraising professionals will hit a wall. Quick Start does provide basic information, but very limited data that’s beneficial, or as robust as often needed when preparing a successful grant. That’s why FDO is clever to offer the Essential plan, which offers more in-depth access to foundation profiles to supplement winning proposals, and the Professionals plan, with the cited ‘most exhaustive and up-to-date knowledge and insight on the social sector to fuel any fundraising mission.’ 

On the communication side, Preciate’s freemium level allows a user to host a virtual meeting for up to 10 guests for 40 minutes. Professionals, however, soon realized that a time limit to meetings is a distraction, a ticking clock that interrupts the important conversations at hand. This understanding has become especially clear during the COVID pandemic, when both employees and clients are connecting via remote meetings nearly all the time. So, Preciate’s next tier up, the Team option, boosts the hosting capacity up to 100 guests with unlimited time, neatly solving the ‘uncovered’ freemium problem!  

Build brand loyalty by providing additional value to freemium users.

One way to convert your freemium users into paid subscribers is to provide additional value, such as customer service. When you provide a clear, easy direction on where they should go to get answers to their questions, you’re setting users up for an excellent experience of your brand. That builds trust and increases their willingness to consider an investment. For example, Preciate’s freemium members have access to numerous digital resources, such as a Help Center, regular blogs on professional topics, an e-newsletter with updates, along with Inspiration Tips for better meetings. 

Make the transition from free to paid as simple as possible.

Curricula, an eLearning platform that trains employees in security awareness, is a great model to study when it comes offering a simple upgrade. Their freemium plan is geared to organizations ‘just starting on their security awareness journey,’ clever wording that naturally raises the question: what if a company wants their employees to go beyond a beginner’s understanding of security? 

That’s why the next tier speaks directly about scaling their security awareness program, and the process is made even more appealing by the fact that companies can gain full access to their training episode library and resources for a mere $1.50 an employee. What’s simpler than a $1.50 charge? Even better, for just 50 cents more per employee, users can access the Enterprise plan, which is targeted to organizations looking to truly personalize their learning experience. 

The step between paying nothing and paying something is the most significant step for a user of your product. If you’re one of those frustrated developers, consider these strategies!  

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