In the world of SaaS, the freemium model has become a widespread customer acquisition strategy. The premise is simple: offer a free version of your software to attract users and then convert a portion of them into paying customers. The classic tagline — "Start for free, upgrade as you grow" — perfectly encapsulates this approach. But while the model sounds straightforward, the reality is more complex. Freemium is not just a pricing strategy; it is a calculated bet with significant costs. Companies must carefully balance acquisition, conversion, and infrastructure expenses to make freemium a sustainable growth engine rather than a financial sinkhole. Freemium offerings come in different flavors, each designed to balance value for the user with a strong incentive to upgrade: Unlimited free usage with restricted features The core product is free, but premium features (often essential for corporate users) require payment. This flavor is common in open-source solutions, where ente...
In retail banking, loyalty is often misunderstood. A truly loyal customer is not just someone who has stayed with a bank for a long time — it is someone who actively engages with the bank’s products and services and has a strong emotional connection to the brand. Such customers do not just remain with the bank; they advocate for it. They willingly recommend it to friends and family, contributing to a high Net Promoter Score (NPS) . They are true brand ambassadors—not because of incentives, but because they genuinely believe in the brand’s value. Loyal customers are also more resilient to competition . Unlike transactional customers who can be swayed by welcome bonuses or minor pricing advantages, truly loyal customers stay even when competitors offer slightly better terms. Their connection is built on trust and experience rather than short-term financial perks. However, this level of loyalty must be earned through a combination of ...