Ignite cloudware freemium to premium challenges in sales campaign


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Freemium is becoming a common business model for SaaS vendors wishing to gain market share in short time, get awareness & attention to their product and hopefully sell their product eventually. The vendor next challenge is converting the Freemium customers into paying ones.
The following presentation provides an overview about the challenges vendors are facing in the sales process to Freemium customers.
We invite you to contact us and share your challenges with us :

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Ignite cloudware freemium to premium challenges in sales campaign

  1. 1. Igniting Your SaaS Cloud Sales From Freemium to Premium B2B SaaS’ Challenges in Conversion Process Revital Libfrand, Co-founder Ignite Cloudware
  2. 2. 2 Why Freemium? Freemuim is a business model based on the concept where the company give a limited version of its core product away for free and sell premium products or services The freemium model is used in several variation both for B2B & B2C, companies choose the freemium model to: • Gain large volume of users easily • Brand awareness • Generate product attention so free users will convert into paid customers • Gain community of product fans so free users will attract paying customers
  3. 3. 3 Types of Freemium Model Capacity based Freemium Get limited capacity (usage, # of users etc) for free, additional capacity requires payment Feature based Freemium Get limited features for free, additional features requires upgrade to premium version Get Ads Freemium Get free sw access license with Ads; Removing Ads requires payment Use case based Freemium Free access based on usage i.e Developer free license, Non commercial use free license etc
  4. 4. 4 - Suit mainly B2B - Consumer is exposed to all features from day one - Conversion to premium is easier from consumer perception as the product is already adopted. Capacity Based Freemium Capacity Based Freemium -Highlights
  5. 5. 5 - Suit both B2B & B2C - Limited version must provide true benefit to consumer to avoid churn - Upgrade to premium is not trivial from consumer perception as it requires users new adaptation process Feature Based Freemium Feature Based Freemium -Highlights
  6. 6. 6 - Suit both B2B & B2C - Consumer is exposed to all features from day one - Conversion to Premium is done to remove vendor watermark or remove sponsored Ads Get Ads Freemium Get Ad Freemium -Highlights
  7. 7. 7 - This model is used to enable users adopt product in certain environment (developer, non-commercial, students etc) so once they become decision makers they will be more likely to pay for the software Use case Based Freemium Use Case Based Freemium -Highlights
  8. 8. 8 SaaS Vendors Challenges in conversion process SMBs may never reach the paying level and vendor should consider the cost of free users Vendor must communicate to Consumers the benefit of the additional features and their ROI Consumer learned to get alone in Ads environment Ensure the Ads revenue model works for their product Challenge to properly monitor consumers’ usage For all Freemium models, vendors must ensure that the marginal cost of each additional Freemium user is close to 0 Feature Based Capacity Based Get Ads Use Case
  9. 9. 9 Breaking the Freemium Boundaries Many SaaS vendors who introduced successful freemium business model by building easy-to-use product that automatically convert leads to users often struggle with the role of sales in their organizations Key topics for Freemium to Premium Sales Strategy: • Adjust Consumer Internet Techniques while approaching your B2B customers • Use Only Inside Sales Teams- The team needs to be able to sell strategically over the phone avoiding face-to-face visits with the customer. • Support the sales process with nurturing leads marketing campaign
  10. 10. 10 Creating a successful sales campaign Freemium to Premium • Freemium users are great inbound leads source for your inside sales team • Preparation for a successful sales campaign: • Analyze how your free users are using your software • Allocate relevant inside sales REP with the required skills to perform the job • Test several sales scenarios on few groups of users and decide what is the most efficient campaign • Adjust the sales campaign to the Freemium model you are using.
  11. 11. 11 Key to Campaign Success Any sales & marketing campaign requires proper planning, clear goals definition ((# users, % retention, product usability etc), KPIs measurement along the way, analyzing the results and constantly adjust & improve the process in order to increase conversion rate in every stage. Define KPIs Measure Analyze Improve process
  12. 12. 12 Matching Sales Campaign to Freemium model- example Feature based FreemiumCapacity based Freemium Initiate a service campaign that includes a survey. The questionnaire should include questions that enable your Sales REP to provide an “offline” recommendation which refers the customers to capabilities that exist in the premium version and create an interest with the premium version Sales campaign: generate target list report for your inside sales team with users that reaches capacity threshold (i.e. over 80%) Campaign Concept Farmers in their nature, must have deep knowledge of the product and how the customer could benefit the Premium features for his business Hunter in their nature, with ability to understand the customer growth plans Sales REP Skills
  13. 13. Are you struggling allocating inside sales resources for your Freemium to Premium Campaign? 13
  14. 14. 14 Inside Sales Organization Service HR Recruitment - Define candidate pre-requisites : Academic Degree, Language, high communication skills - Phone interview followed with Personal interview Cloudware School - General sales topics - Vendor Tailored topics Sales Assignment - Optimization of Sales REP to job description Sales kit preparation - Detailed documented sales process script Logistic & Support systems - Phones, Station work - Relevant SW : CRM, punch clock etc Ignite Cloudware Provides wide Sales & Marketing services to SaaS vendors. Our inside sales team setup & ongoing management in a nutshell :
  15. 15. 15 Ask me how to build an optimized inside sales team for your SaaS business www.ignitecloudware.com +972-72-2116601 revital@ignitecloudware.com