Best Practice for Lots of Free Accounts?
Hello,
Our service offers a freemium model, with both a free account and a paid account. We notice that CG supports Free Plans.
Our question is: What is the advantage of managing all of our Free Accounts with CG? Will Free Accounts count against our "managed customer" CG caps? We expect a fair percentage of our users will choose the Free Account, and thus we don't want to eat away at our block of CG managed customers (especially if those Free Accounts don't generate revenue)
A related question is: What is the best practice for when a user downgrades from Paid to Free. Should we simply delete their CG customer object?
Thoughts, tips or tricks?
Thanks!
Seth
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Support Staff 1 Posted by Marc Guyer on 25 Mar, 2010 04:07 PM
The advantage to using CG for free account management is in the analytics and communication. This is especially useful in a traditional freemium model. Over time, you can learn which of your marketing efforts are resulting in the best free to paid conversion rates and market sources that result in the most revenue potential. You may also use the customizable email notifications system to send drip marketing emails to your free and low paid users.
There are some other features that you can take advantage of but the main advantage as stated above is the most compelling. It's exactly the kind of data needed to make a freemium model successful.
2 Posted by seth.ladd on 25 Mar, 2010 05:23 PM
All good points.
Am I right in assuming that free accounts are counted towards the customer count (as dictated by the pricing plans that you have)?
Thanks,
Seth
Support Staff 3 Posted by Marc Guyer on 25 Mar, 2010 05:28 PM
That is correct. Any "active" customer counts. Canceled customers are not included, so you could cancel a free customer after a period of time if you determine that they will no longer be using your free service.
4 Posted by Seth Ladd on 25 Mar, 2010 05:39 PM
Ok, thanks for the clarification!
Marc Guyer closed this discussion on 25 Mar, 2010 06:07 PM.