Freemium Economics: Leveraging Analytics and User Segmentation to Drive Revenue

by Eric Benjamin Seufert

Overview

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. - 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

Product Details

ISBN-13:	9780124166981
Publisher:	Morgan Kaufmann Publishers
Publication date:	12/27/2013
Series:	The Savvy Manager's Guides
Sold by:	Barnes & Noble
Format:	eBook
Pages:	254
File size:	3 MB

About the Author

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.

Table of Contents

1. What is the Freemium Model?2. Analytics as the Heart of Freemium3. Quantitative Methods for Product Management4. Freemium Metrics5. Lifetime Customer Value6. Monetization and Downstream Marketing7. Virality8. Optimized User Acquisition

What People are Saying About This

From the Publisher

Learn how to analyze and use the vast volumes of data your freemium product generates to maximize conversion, boost retention, and deliver revenue

Editorial Reviews

"Seufert’s book provides extensive guidance on analyzing the data generated by a freemium product to boost retention and drive revenue. By collecting and deploying analytics on large amounts of data generated by users of the product, through all stages of development and usage, the author explains how you can optimize your implementation of the freemium model." —Data and Technology Today, 2014

From the Publisher