Digital Marketing Services – Free to try products, Freemium Model

The Benefits of Offering a Free to try Product

Freemium Model

How to not miss out on brand- and ROI-boosting advantages from the Free Product, trial or Services. Many Marketing experts can see the value in offering top-rated skincare products along with a free product or service ( Freemium Model).

Several things drive a freemium strategy. First, because free features are a powerful marketing instrument, this business marketing feature has been getting start-up companies to ramp up and attract a user base without using costly advertising campaigns.

Audrey Anderson World

Freemium Model

Table of Contents - The Benefits of Offering a Free to try Product or Service (Freemium Model)

The Idea of Offering Free to Try Products or Services

With the powerful free 30 day trials or other limited-term agreements, Freemium model is successful. The user is already attuned to the services or products you are offering.

The idea of offering a product or service for free feels “counter-intuitive”, Right! You are thinking, this will cost me money to run my business. You could be passing up a slew of branding- and ROI-boosting business opportunities.

Rather, you can experience tremendous future development in these areas by judiciously offering giveaways or free add-ons.

It is a long fact that a reader will be distracted by the readable content when looking at its layout. 

Freemium Model
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ROI-boosting advantages from offering a Free to try Products or Service.

The Freemium Model – How to not miss out on the brand- and ROI-boosting advantages from offering Free try Products or Services.

The end goal of offering a free product is building a greater customer experience. and creating a loyal customer base. Building a loyal customer base is critical. Loyal customers are frequently happier, earning more money, with the potential for spending more money, spend more time, sharing with more friends about your brand or business, etc. 

WIN-WIN – Right!

Though many business owners and clients are reluctant initially to offer free to try products or services, why? Think of it this way. 

 Free offerings are a tried-and-true means of generating leads. Many B2B companies may offer ebooks or other content in exchange for subscribing to their email. 

A simple approach for you to collect email addresses for use in future marketing initiatives. According to the Content Marketing Institute, this type of offer is so common that 88 per cent of B2B organisations employ content marketing for lead creation.

I am a firm believer that it can also be a powerful and successful marketing technique.

Businesses that are in the market for customer acquisition – Start-ups

Once you have created a marketable product, the first step is to develop a solid customer acquisition strategy. It is vital to have the correct plan if you want to achieve long-term, sustainable growth. For those start-ups, your marketing budget would probably look like 80-90% marketing in acquiring new customers.

Begin planning for a new user or customer acquisition with these percentages in mind. This necessitates audience segmentation, goal formulation, and omnichannel marketing, along with the Freemium model.

With that said, why is it critical to have a client acquisition strategy in place from the start? Isn’t it possible to focus solely on marketing your start-up to achieve exponential growth?

“Freemium” plans have been a popular technique for tech start-ups and app developers to recruit new customers during the last decade or so. The idea is that if people test a bare-bones version of your service for free, or if they use a free version until they reach a specific number of users, they’ll realise how fantastic it is and pay you to use the version with all the bells and whistles.

Some do not see the benefits of this strategy. The general argument is that it is hard to make money by giving away items for free, that free users aren’t quality consumers, and that they take an inordinate amount of resources. All of this is correct. At least if free isn’t part of a larger plan.

My company provides its products in two forms: freebies with premium purchases. My clients have also tested a few different approaches, such as free plans with limited capabilities, 30-day free trials, and their current offering: a free plan that allows customers access to everything we have to offer with certain limitations (for example, whether campaigns are white-labelled or how much data we’ll save).

  • Customers who already have an appetite for your service or product are easier to please, including enhanced brand recognition.

One approach to attracting more users is by providing the service free of charge for a short period. It’s something every business does! It gets results.

Research has shown that you can profit from it. YouTube, for example, offers a free service but monetises its content with adverts. Furthermore, if your users enjoy your (free) product, you will eventually notice increased brand awareness, leading to increased profitability.

  • Customers who are easy to work with and a greater awareness of the brand

Providing the service for free is one of the simplest strategies to gain more consumers. All practise it! They even devised a method to profit from it. YouTube, for example, offers a free service but monetises its content through adverts. Furthermore, if your users enjoy your (free) product, you will see an increase in brand awareness, which will lead to increased profitability.

  • Researched based and a powerful way of Customer Engagement.

This one-of-a-kind business approach also gave birth to a new notion known as Newtonian Engagement. The name is a play on Isaac Newton’s first rule of motion, which claims that “An interested player of a freemium service will remain engaged until moved upon by an outside force.” 

It may sound to you like this is a crazy idea, it is the reality. Customer Engagement is a primary motivator for freemium services, typically games, apps, streaming, online publications. A bit like try before you buy. 

  • Product feature testing without risk

A well-planned Freemium deal provides hundreds or thousands of free users for your product or service. Implying that you have some leeway regarding the features you can test with your audience. 

For example, you can design a very rudimentary version of a new feature of your app or service and see if your free users like it – all without worrying about if they’ll cancel if it doesn’t work as intended. You can also do low-cost tests to message or email your free users, pitch a feature, and see what piques their interest.

  • Testing Product Referral Programs

Accessing a larger group of free users can also be advantageous in testing referral programmes and gaining new users. For example, no matter how wonderful a referral programme is, it takes time to perfect. Furthermore, if you are constantly running experiments to entice your paying customers to share your product, they may become irritated and discontinue their service.

On the other side of the coin, having free users allows you to try various referral schemes scientifically. Thus, referrals could be an efficient marketing channel that comes at the marginal cost of sustaining free users if all goes well. You have an excellent referral programme and five times as many free users as premium customers.

  • When done correctly, the freemium business model helping brands and businesses attract substantial traffic to your websites.

Providing customers with a “try before you buy” experience that overcomes user resistance to purchasing. Thus, converting the free users to paying customers. 

Dropbox is an expert in this model. The company boasts 500 million registered customers, each of whom receives two gigabytes of free storage space. When they reach that limit, consumers are given the option of upgrading to one terabyte for a monthly or annual subscription charge. Dropbox produced $1 billion in income in 2017 from 11 million paying individual and business users using this approach, and it continues to grow its user base.

  • Beauty Industry Free Product Promotion

Sending out free samples to clients who are already warm leads is an excellent approach for promoting your skincare products and services. 

It’s an opportunity for those warm leads to provide your brand with input on what consumers like and dislike about the freebie. In addition, brands can use this research base to try things out, and if they enjoy them, users will be more likely to tell their friends about them – and another win-win situation for businesses!

  • The Network Effect

Offering a product or service for free is the ideal approach to attract more clients. Even if most of these consumers will not usually progress to the premium stage, they work like a magnet to attract more prospective premium customers.

This brand or business model is explicitly based on the network effect, a business phenomenon. According to the network effect, an outstanding service gets more valuable as more people use it. Specifically, the greater the number of individuals who use the product or service, the greater its value.

Free to try Products or Services for Customer Retention

Freemium Model – Free to try Products or Services for Customer Retention – those more established businesses

YOu would now have acquired a decent number of repeat customers. So you will then look to drop the new customer acquisition down to around 40-50% and spend that other 60% on loyalty programs.

Market to current customers and prospects: Many businesses make the marketing error by exclusively focusing on prospects and ignore their existing customer base. Forgetting about existing clients can be extremely costly for your business.

  • Customers Should Be Rewarded for Their Loyalty. 

Appreciating your clients’ or customers continued preference for you over the competitors. 

By rewarding their loyalty while also encouraging them to choose your items in the future? The top 10% of business customers are predicted to spend three times as much as the rest of your clients. 

It, therefore, pays to give those high-spending clients a cause to return again and again. Customers that participate in the top rewards programmes receive free items or services, awards, coupons, or even the option to purchase goods before they are officially released.

  • Get results with your loyalty program email marketing.

When a consumer is ready to buy again, the only thing that prevents them from becoming repeat customers is that they don’t think of you. As a result, they purchase from someone else. Solve this issue by using email marketing to keep your company’s name in front of your customers’ minds. You can send product information, industry news, timely recommendations linked to what you sell, and other stuff that your clients would find fascinating. The communication will assist in keeping your company in mind.

  • Loyalty rewarded through thoughtful Discounts.

Falling into the trap of undervaluing your products might have serious implications. After all, you don’t want to provide such low rates that you end up losing money regularly. 

Yet, the occasional promo code or coupon offer can be a valuable tool in keeping clients engaged. Consider delivering these bargains to first-time consumers after they have completed a transaction. Then, persuading them to buy from you again while your memory is still fresh in their minds.

  • Make Use of Surveys

Not knowing what your consumers are thinking is really not optimal for business owners. Offering an incentive and inviting clients to complete an online survey is the first step towards increasing retention. 

Surveys to highlight their pain points might indicate areas for improvement or show what products and services your clients anticipate you will offer in the future.

  • Make Up for Mistakes with Freebies

Customer retention is more than just persuading consumers to buy more. It is also about assisting clients when things go wrong. For example, products may break immediately after purchase, or buyers may fail to use items effectively. 

Taking the time to contact clients via email or social media to enquire about how you can assist in addressing and resolving the issue. The goodwill generated by this is likely to drive clients to return to you in the future when they require your goods or services.

Reminding these customers of your worth regularly. Customers joined up for your goods because you offered something that no one else did. They signed up because they perceived value in what you created; you had something worth their time.

Freemium Model – Free to try Products or Services in reducing Customer Churn

Why don’t most firms focus most of their marketing strategies and budgets on their existing client base since everyone knows it’s easier and cheaper?

Retaining Current Customers: Every dollar spent on direct marketing to maintain existing consumers is worth fifty times the same dollar spent chasing new clients. It is extremely difficult to attract the attention of new clients, embed your message in their minds, and convince them to act with above-the-line advertising (conventional mass media advertising: newspapers, television, radio, outdoor, Internet).

Analytically it is less expensive, and it is considerably easier to reinforce your message and encourage repeat visits with an existing consumer.

There are distinct indicators that a consumer is on the verge of churning before they cancel. “Work as hard to keep a customer as you do to find a new one.” Bill Quiseng

Businesses that learn to read those signals may be able to take preventive measures to reduce client churn. This is why you must be proactive in analysing your user behaviour, identifying churn indicators, and continuously monitoring these indications. Here are a few churn prediction indicators to keep an eye out for:

Customer attrition is frequently followed by a period of decreasing usage levels. Monitoring login activity will assist you in identifying at-risk consumers before they churn. There is no ideal degree of login activity because it is dependent on your product, the user experience, and how frequently they use it under normal conditions.

It also concerns when someone switches to a lower-tiered version of your product. There’s a chance they’ll cancel soon.

Support tickets – It primarily considers the number of support issues raised, the severity of the difficulties, and its time to resolve them. These three elements might have a big impact on your customers’ loyalty to your business. 

Another issue is that they haven’t reported any problems. Silence does not always imply that they are pleased with your product. Again offering them something for notifying you of their difficulties will go a long way.

Adoption of Features – Every product has some distinguishing features that set it apart from the competition. Your existing customers are highly likely to churn if they are not presently using these features.

Customer Key Performance Indicators

If your product isn’t assisting customers in meeting their KPIs, they’re more likely to leave. Therefore, soliciting their opinion frequently, whether through surveys, phone conversations, or transactional emails. Offering them alternative freebies to achieve their KPI’s

The benefits of offering free to try products – Freemium Model

  • Growing your leads list 

Using the marketing ploy of free offers have been a proven tried-and-true method of lead generation. Many B2B brands will provide ebooks or other materials in exchange for signing up for their newsletter. This serves as an easy way to collect email addresses that can be leveraged in future marketing campaigns. This type of giveaway is so widespread that SNS Content Marketing Institute reports that 88% of B2B companies use content marketing for lead generation.

SNS Marketing Business Product Skincare

Of course, similar tactics can also prove effective when selling other consumer products, such as Alcohol, Sunglasses, shoes, personal skincare Products.

Brands use certain product giveaways which encourage their existing audience who follow them on social media to sign up for an email list to gain additional entries. The result is more potential buyers who will receive email and social media marketing, leading to future purchases.

  • Helping others understand what you have to offer

In light of COVID-19, offering an additional free travel-sized kit and additional add on’s such as Skincare moisturiser was more than helpful to triage coronavirus symptoms remotely. Rodan and Fields implemented this solution on their websites. 

It was the right thing to do, but it’s also allowed customers in the US, Canada, and Australia to see how our products work. In addition, it gave us a chance to show our commitment to quality service, which will undoubtedly lead to new client growth in the future.

  • SNS Marketing used well can generate a buzz for your Products.

These product giveaways were an excellent means of building or following your fan base. This promotion is frequently seen in social media competitions where premium beauty brands like Rodan and Fields require that followers tag friends as part of their entry. As I am currently doing in Japan on Instagram

  • SNS Marketing Free Buzz Social Media – 

If done correctly, it can produce a snowball effect that leads many others to find their products. Indeed, the Easypromos survey indicated that 99,3% of contestants share web links when the contest stimulates others to take part.

Of course, the advantages go much beyond brand awareness. For example, contests might result in a growing number of followers and subscribers of your social media. Through such methods, they can also significantly enhance participation. More followers and more commitment will, of course, lead to better leads and purchases.

  • How to collecting valuable market feedback

 Your most loyal customers can serve as an important source of information when testing a new product or service. It is important to know testing products with customers is “the only real test of a product.

If people criticise your new product idea, ask them why. It is important to ask how the product could be modified to make it more attractive. For your most loyal customers, the potential of being the first to try your next innovation is motivation enough. And the wider of a group you can test, the more diverse and reliable feedback you’ll receive.

Freemium Model – SNS Marketing Social Media Sales

  • Up-selling purchases for Free shipping

 There’s a good reason why many online retailers like Amazon and Walmart set minimum purchase requirements to qualify for free shipping. 

It’s an easy way to encourage customers to buy one or two extra products to fill up their shopping cart before checking out. In fact, a UPS study found that in 2017, 48 per cent of online shoppers added items to their cart to qualify for free shipping.

It drives similar results when offering a free product or value-added service when customers meet a set minimum purchase threshold. Alternatively, you could bundle a free item with a lower-selling product to boost its sales. Pair relevant products and services together to better upsell to your customers.

Freemium Model

How to have plenty of profit for tomorrow with a Freemium Model today

As these examples show, it all concerns the long-term results to give products or services free of charge. So whether you offer clients a chance to “test before buys” fundamentally or directly motivate further sales, these incentives will have a beneficial impact on your financial statements strategically.

Key Takeaway's - The Benefits of Offering Free to try products or services

Freemium Model – Think about how you can make free offers compelling enough to convince users to opt-in for your paid product or service. This article should give you the ins and outs of how to make free offers work for you.

While it is necessary to appeal to and acquire new consumers, it is critical to your company’s survival to keep and nurture the customers who have previously supported and purchased with you.

While the cruel truth is that certain clients churn out whatever you do, never consider it a “part of the business” and take this lightly. If you’re not concerned about customer attrition, this is an even bigger problem. If the client churn is unchecked, your company can potentially destroy itself for good.

Keep an eye on early warning indicators and steps as soon as you see a risky client help foster them, establish loyalty, and increase your CLV (customer lifetime value).

All recognise that increasing business from current customers is cheaper and easier, but what distinguishes successful companies from the package is the capacity to focus on existing customers by spending a major part of their marketing budget to focus on existing customers and put this knowledge into effect.

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