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Auflistung nach Schlagwort "Freemium"

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  • Zeitschriftenartikel
    How to Succeed with Cloud Services?
    (Business & Information Systems Engineering: Vol. 61, No. 2, 2019) Trenz, Manuel; Huntgeburth, Jan; Veit, Daniel
    How can cloud providers be successful? Severe competition and low up-front commitments create enormous challenges for providers of consumer cloud services when attempting to develop a sustainable market position. Emergent trends like consumerization lead to high growth rates and extend the reach of these services far into the enterprise sphere. Using a freemium model, many providers focus on establishing a large customer base quickly but fail to generate revenue streams in the long run. Others charge consumers early but do not reach their growth targets. Based on a representative sample of 596 actual cloud service users, the study examines how consumer cloud services can become self-sustainable on the basis of the user base and revenue streams they generate. The authors identify two mechanisms that influence the success of consumer cloud services, dedication- and constraint-based mechanisms, and show how they drive different elements of success. They find that satisfaction impacts the success of cloud services in terms of user generation and continuance, while switching barriers need to be in place to generate revenues. The results indicate that focusing on a single success element can be misleading and insufficient to understand the success of cloud services. The key findings are used to derive recommendations for three generic strategies that cloud providers can apply to become successful in their competitive market environment.
  • Zeitschriftenartikel
    Making Digital Freemium Business Models a Success: Predicting Customers’ Lifetime Value via Initial Purchase Information
    (Business & Information Systems Engineering: Vol. 58, No. 2, 2016) Voigt, Sebastian; Hinz, Oliver
    In digital freemium business models such as those of online games or social apps, a large share of overall revenue derives from a small portion of the user base. Companies operating in these and similar businesses are increasingly constructing forecasting models with which to identify potential heavy users as early as possible and create special retention measures to suit those users’ needs. In our study, we observe three digital freemium companies that sell virtual credits and investigate to what extent initial purchase information can be used to determine a given customer’s lifetime value. We find that customers represent higher future lifetime values if they (a) make a purchase early after registration, (b) spend a significant amount on their initial purchase, and (c) use credit cards to purchase credits. In addition, we see that users tend to spend increasing amounts on subsequent purchases.