Freemium Economics: Leveraging Analytics and User Segmentation to Drive Revenue PDF
Preview Freemium Economics: Leveraging Analytics and User Segmentation to Drive Revenue
Freemium Economics Leveraging Analytics and User Segmentation to Drive Revenue Eric Benjamin Seufert The Savvy Manager’s Guide Table of Contents Cover image Title page Copyright Dedication In praise of Freemium Economics: Leveraging Analytics and User Segmentation to Drive Revenue Acknowledgments Author Biography Introduction Chapter 1. The Freemium Business Model Commerce at a price point of $0 Components of the freemium business model Freemium economics Freemium product case studies Chapter 2. Analytics and Freemium Products Insight as the foundation of freemium product development Analytics Designing an analytics platform for freemium product development Data-driven design Chapter 3. Quantitative Methods for Product Management Data analysis Descriptive statistics A/B testing Regression analysis User segmentation Chapter 4. Freemium Metrics Instrumenting freemium products Minimum viable metrics Retention Monetization Engagement Virality Using metrics in the freemium model Chapter 5. Lifetime Customer Value Lifetime customer value Lifetime customer value and the freemium model The spreadsheet approach The analytics method Making decisions with LTV Chapter 6. Freemium Monetization The continuous monetization curve Choice, preference, and spending Data products in the freemium model Downstream marketing Chapter 7. Virality The viral product What is virality? Quantified virality Engineering virality Chapter 8. Growth Facilitating a large user base Strategic growth Mobile user acquisition Alternative user acquisition References Index Copyright Acquiring Editor: Andrea Dierna Editorial Project Manager: Kaitlin Herbert Project Manager: Malathi Samayan Designer: Matthew Limbert Morgan Kaufmann is an imprint of Elsevier 225 Wyman Street, Waltham, MA 02451, USA Copyright © 2014 Elsevier Inc. All rights reserved No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording, or any information storage and retrieval system, without permission in writing from the publisher. Details on how to seek permission, further information about the Publisher’s permissions policies and our arrangements with organizations such as the Copyright Clearance Center and the Copyright Licensing Agency, can be found at our website: www.elsevier.com/permissions. This book and the individual contributions contained in it are protected under copyright by the Publisher (other than as may be noted herein). Notices Knowledge and best practice in this field are constantly changing. As new research and experience broaden our understanding, changes in research methods or professional practices, may become necessary. Practitioners and researchers must always rely on their own experience and knowledge in evaluating and using any information or methods described here in. In using such information or methods they should be mindful of their own safety and the safety of others, including parties for whom they have a professional responsibility. To the fullest extent of the law, neither the Publisher nor the authors, contributors, or editors, assume any liability for any injury and/or damage to persons or property as a matter of products liability, negligence or otherwise, or from any use or operation of any methods, products, instructions, or ideas contained in the material herein. Library of Congress Cataloging-in-Publication Data Seufert, Eric Benjamin. Freemium economics : leveraging analytics and user segmentation to drive revenue / Eric Benjamin Seufert. pages cm Includes bibliographical references and index. ISBN 978-0-12416690-5 (alk. paper) 1. Pricing. 2. Bundling (Marketing) 3. Marketing. 4. Demand (Economic theory) 5. Consumption (Economics) 6. Computer software industry—Case studies. I. Title. HF5416.5.S48 2014 658.8′16—dc23 2013037659 British Library Cataloguing-in-Publication Data A catalogue record for this book is available from the British Library ISBN: 978- 0-12416690-5 Printed and bound in the United States of America 14 15 16 17 18 11 10 9 8 7 6 5 4 3 2 1 For information on all MK publications, visit our website at www.mkp.com or www.elsevierdirect.com Dedication For my mother In praise of Freemium Economics: Leveraging Analytics and User Segmentation to Drive Revenue “Eric Seufert provides comprehensive, analytical insight into the what, why, and how of building a successful freemium business. Whether you’re building a free-to-play game or freeware SaaS product, Freemium Economics is an excellent resource to increase chances of success.” —Ryan Hoover, PlayHaven “Eric Seufert’s Freemium Economics covers every aspect of freemium software design and development, from the core concepts of “freemium economics” to marketing. This book is a must read for anyone developing freemium products.” —Michail Katkoff (“The Deconstructor of Fun”), Scopely
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