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Freemium Economics presents a practical, instructive approach to successfully implementing the freemium model into your software products by building analytics into product design from the earliest stages of development.
Your freemium product generates vast volumes of data, but using that data to maximize conversion, boost retention, and deliver revenue can be challenging if you don't fully understand the impact that small changes can have on revenue. In this book, author Eric Seufert provides clear guidelines for using data and analytics through all stages of development to optimize your implementation of the freemium model. Freemium Economics de-mystifies the freemium model through an exploration of its core, data-oriented tenets, so that you can apply it methodically rather than hoping that conversion and revenue will naturally follow product launch.
By reading Freemium Economics, you will:
- Learn how to apply data science and big data principles in freemium product design and development to maximize conversion, boost retention, and deliver revenue
- Gain a broad introduction to the conceptual economic pillars of freemium and a complete understanding of the unique approaches needed to acquire users and convert them from free to paying customers
- Get practical tips and analytical guidance to successfully implement the freemium model
- Understand the metrics and infrastructure required to measure the success of a freemium product and improve it post-launch
- Includes a detailed explanation of the lifetime customer value (LCV) calculation and step-by-step instructions for implementing key performance indicators in a simple, universally-accessible tool like Excel
- Sales Rank: #198063 in Books
- Published on: 2014-02-10
- Released on: 2014-01-27
- Original language: English
- Number of items: 1
- Dimensions: 9.25" h x .58" w x 7.50" l, 1.17 pounds
- Binding: Paperback
- 254 pages
Review
"Seufert’s book provides extensive guidance on analyzing the data generated by a freemium product to boost retention and drive revenue. By collecting and deploying analytics on large amounts of data generated by users of the product, through all stages of development and usage, the author explains how you can optimize your implementation of the freemium model."--Data and Technology Today, May 27, 2014
About the Author
Eric Seufert is a quantitative marketer with a passion for blending real-world problems with large amounts of data, econometric frameworks, and analytical systems. His professional specialty lies in programmatic statistical methods and predictive forecasting in freemium environments.
Eric received an undergraduate degree in Finance from the University of Texas at Austin and an MA in Economics from University College London, where he was an Erasmus Mundus scholar. Eric joined Skype immediately out of graduate school and subsequently held marketing and strategy roles at Digital Chocolate and Wooga, where he is now the Head of Marketing. Prior to graduate school, Eric worked at uShip, the Austin-based marketplace for shipping services.
Originally from Texas, Eric currently lives in Berlin. In his spare time, Eric enjoys traveling and writing.
Most helpful customer reviews
4 of 4 people found the following review helpful.
A Must Read for anyone in Mobile Gaming, User Acquisition, or Start-ups involved in Mobile
By Garrett G.
Every once in a while a book comes along that perfectly encapsulates the ethos of our time. A book so remarkable, so sublime, so vivid and significantly poignant, that we have only but to stop, pause, and revel in the beauty of its' creation.
Freemium Economics: Leveraging Analytics and User Segmentation to Drive Revenue, is one of those books.
This is truly a seminal work by the author, one that, with radical zeal, distills down the principles and precepts necessary to survive in the byzantine and treacherous Mobile Gaming landscape.
Let us not fool ourselves, friends, for the sandbox we play in is a digital jungle. We breathe life into these mobile applications we build, pixel by painstaking pixel, only to have our hopes and dreams append to the D1/D3/D7/D30 retention metrics of our latest cohort.
This book, will give you the tools, tactics, strategies, and knowledge essential to gaining distribution infamy.
Here are some of my favorite topics covered:
- Commerce at $0 Price Point (Massive Scale, Purchasing a Intersection of Interest & Disposable Income)
- Fremium Case Studies (Skype, Spotify, Candy Crush Saga)
- User Segmentation, Cohorts, & A/B Testing
- Built-In Virality: K-factor & Cycle Times
- Paid User Acquisition & Alternative User Acquisition
It is with this, friends, that I leave you, my objective and unvarnished fervor for this book. A must-read for all those in Mobile Gaming, User Acquisition, or Start-ups involved in Mobile.
2 of 2 people found the following review helpful.
The MOST in depth dig into the analysis of CRUCIAL freemium metrics
By Mark S. Kasson
I received this book yesterday morning along with two others related to the field. We're preparing a freemium release and are looking for ways to see monetization of our non-game product through the eyes of a freemium game marketer.
This book gives me a deep understanding of what we need to calculate and review from a statistical standpoint in order to perform a deep analysis of our user base. It is focused on the calculation and analytical aspects. The other books spend more time on anecdotes and particular categories of advertisement/upsell/gameplay, whereas this book has comparatively few, which is fine with me. They don't really dig into analyzing the data.
This book is about gathering and analyzing the data to maximize LTV (Life Time Value of the customer). The only other place I have seen the type of explanation like in this book is in the author's blog mobiledevmemo.com.
The topics I found of particular interest related to measuring virality, events to be tracked for analysis, analysis spreadsheets and user segmentation. It helps if you have some background in statistics, but you can get most of the book if that's not your background.
Understanding this book will help you create and take every opportunity to understand your audience enough to maximally monetize your app.
2 of 2 people found the following review helpful.
Fantastic book for the freemium model
By Brad Richards
I recently moved into a PM role at a company that makes a freemium app and my Head of Product bought this book for me to read. I really enjoyed Freemium Economics...it's a very thorough overview of the freemium model, mostly from an analytics and revenue perspective, and for someone moving into product development with no prior understanding of freemium, the insight I gained from this book is extremely valuable. One thing to note is that the book doesn't go into detail about product design decisions...it reads more like a textbook, so it's very high-concept, and what it addresses really well is the process of developing and iterating on freemium products to maximize revenue. This is a great book and I'd definitely recommend it to anyone that needs a broad introduction to the freemium model
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