Introduction

Transitioning freemium customers to paying subscribers is a critical step in driving growth and maximizing the impact of your product. By effectively demonstrating the value received from your free tier or feature set, you can encourage these users to see the benefits of upgrading. This article will guide you through strategies to highlight the value of your offerings to freemium customers, building on our previous discussion about understanding customer business landscapes and setting the stage for deeper customer engagement and retention.

Why does this matter?

Showing freemium customers the value they receive is important for several reasons:

• Increased conversions: Highlighting the benefits and ROI of your product can encourage freemium users to convert to paid subscribers.

• Enhanced product adoption: When users see the tangible benefits of your features, they are more likely to use them effectively and frequently.

• Resource optimization: Demonstrating value can reduce the resources needed to manually convince customers of the benefits, streamlining the conversion process.

How to get started

To effectively show freemium customers the value received, follow these steps:

Step 1: Identify key value metrics

1. Determine impactful statistics: Identify the most compelling value metrics, such as time saved, increased efficiency, or cost savings.

2. Segment your audience: Understand different customer segments and what value metrics resonate most with each group.

Step 2: Create targeted value messages

1. Develop engaging content: Craft messages that highlight the identified value metrics. Use clear, concise language and visuals to make the benefits obvious.

2. Personalize the communication: Tailor your messages to address the specific needs and pain points of each customer segment.

Step 3: Choose effective communication channels

1. Use in-app notifications: Leverage in-app messages to deliver value highlights directly within the user interface.

2. Automate email campaigns: Set up automated email sequences to regularly remind users of the value they are receiving and the additional benefits of upgrading.

Step 4: Monitor and optimize

1. Track engagement and conversion rates: Use analytics tools to monitor how freemium users interact with your value messages and measure conversion rates.

2. Gather feedback: Collect user feedback to understand what aspects of your value messaging resonate most and identify areas for improvement.

Gainsight features you'll need

• Gainsight PX or similar tools: To capture detailed usage data and enhance feature tracking.

• Journey Orchestrator: To automate the delivery of value messages through email campaigns.

• Dashboards: To monitor engagement and conversion metrics.

What’s next?

With a clear strategy to show freemium customers the value they receive, you are well-positioned to drive conversions and improve product adoption. Continuously monitor the effectiveness of your value messaging and make adjustments as needed to optimize results. Engage with your customers regularly to ensure they are experiencing the full benefits of your product and to foster long-term relationships.

Further reading and inspiration

Blog: How to drive durable growth with the community-led and product-led flywheel