Freemium

Freemium

Freemium is a business model in which a company offers a free version of its product or service that is limited or only offers basic functions. At the same time, a premium version is offered, which offers additional functions or services and for which the user must pay.

In neuromarketing, the freemium model can be used to attract and retain customers by offering them a free version of the product or service. The free version allows users to test the product or service and see that it meets their needs before deciding to purchase a premium version.

The freemium model can also help to increase customer engagement and loyalty by creating a sense of reciprocity. When users receive and benefit from a free version of the product, they are more likely to feel obligated to remain loyal to the company and potentially purchase the paid premium version in the future or recommend the company to others.

In neuromarketing, customer decision-making can be influenced by the targeted placement of incentives offered by the freemium model. For example, companies can design the functions of the paid premium version in a way that promises customers greater benefits, increasing the likelihood that customers will opt for the premium version.

To the glossary