Fintech: Free to Paid Model Communication Strategy
Determine communication strategies employed by fintech companies to transition from a free to a paid model. The information will be used to develop a communication strategy for a fintech company.
Fintech: Free to Paid Model Communications Strategy
- When transitioning to a freemium acquisition model to a paid one, companies need to ensure that users know beforehand the limitations of their free subscription.
- Firms can also successfully communicate the transition by offering improved functionalities.
- They should also be informed ahead of usage limits and other usage level quotas.
- Users should also be informed beforehand of the corresponding levels of support for each access tiers.
- Users should also perceive the value of the product to ensure that they are motivated to pay for access to additional features.
- When asking their clients to transition to a paid service, companies will also need to explain in a direct and convincing manner on why availing of the paid features can boost the client's business.
- If this can't be explained in a simple manner, the company need to determine the best way to structure the model.
- Based on a study, around 12% of B2C fintech firms employ a free trial or freemium model.
- For fintech firms, transitioning to gain-share models need to be explained well to move away from the preception that the fee scheme is not fair for the clients.
- In the fintech sector, the pay-what-is-fair fee model is amenable to many clients.
- This is particularly valid if this scheme is combined with a transparent message that the fees are necessary to enable the company to provide the valuable offerings.
- Fintech firms can also provide comparison on how much more consumers have to pay in the wider market compared to the cost that they charge.
Fintech Firms Revenue Models
- Digit employs a monthly subscription revenue model where clients "pay-what is fair" based on the solutions that they use.
- MoneyLion has an internal cross-sell model that lets clients try to free features first.
- The company then offers clients the option to try a premium product.
- Meanwhile, Truebill positions its fees as percentage of savings for its clients.
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