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As discussed in Lesson No. 3, you can expect to generate revenue from free customers if they either (a) convert to paying customers (Conversion %) or (b) attract other users (Viral Coefficient).
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Continued growth is projected from ongoing increases in site traffic and enhancements to customer conversion rates.
The "customer conversion" rate varies between types of store: it could be around 20% in some department stores but reach almost 100% in a grocery.
The company says one advantage of its business model is customer conversion between verticals.
Most freemium companies have customer conversion rates of between11 percent and 10 percent (with the average around 2percentto4percentcent).
The company is licensing its customer conversion platform to Prudential, which plans to use it to up-sell existing customers to more of its products.
As CEO of Latitude, one of Europe's largest independent digital marketing agencies, he is driving industry change in marketing focused on customer conversion.
By comparing the cost of servicing free users to the revenue you receive from customer conversion, you can calculate your freemium ROI (see the hypothetical example below).
Given its access to mobile commerce data and customer conversion rates, Branding Brand has the ability to uncover some interesting trends related to social media and mobile commerce.
Reflektion, a predictive analytics startup that helps retailers such as O'Neill improve customer conversion rates, has raised $8 million in Series B funding led by Intel Capital and Nike.
He's ripped ideas off lesser-known companies like FareCast.com, corrected me on the pronunciation of China's up-and-comer Qunar.com (so much for my Mandarin lessons), and can quote Expedia's customer conversion rates.
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