Today at Compete, every new customer goes through a sales process for a monthly subscription and enters the platform.
In order to penetrate to more regions and access to vast amounts of customer data. We decided to implement a freemium model for new costumers, to increase user acquisition.
The main question was how implement the freemium model in a lean platform? we needed to offer enough in order to drive value for the user. Yet still offer tempting up-sale value, so free users will want to upgrade.
The idea is to provide more robust pricing tiers to allow Compete to approach different sectors and different levels of customers in different stages with different needs. מותאם לסוגי היוזרים שלנו- חברות קטנות, בינוניות וגדולות
The Solution
In order to leverage the freemium strategy we've created two flows:
Sign-up flow that incentives users to self onboard to the product
Opportunities to convert to Premium both in the sign-up flow as well as within the product. (by making a limited features and limits the main usage feature in the platform)
בהמשך ראינו צורך להוסיף טיר נוסף שיתאים לחברות קטנות ובינויות שהקפיצת מדרגה של התשלום לא תהיה גבוהה מדי
The Solution
In addressing the identified issues, we prioritized transparency and relevance in our data presentation, while enhancing user control. Our solution involved introducing additional capabilities to our product
Goal
Create a freemium flow that provides enough value to our customers, but is not consuming too much resources - lower customer acquisition costs and access to vast amounts of customer data.
Main KPI: At least 50 new logos are using Compete in freemium mode (in Q3) Secondary: At least 15% conversion rate from new logos to premium (in Q3), At least 25% win back of churn customers (in Q3).
Adding a new basic tier (above trial/free, below premium) to support sales growth and reaching out to companies that are between 30-100 employees, allowing us to increase sales and business.
About Compete
Compete is a platform that offers insights into a company's employee compensation and benefits relative to the market. It utilizes data from numerous tech companies to provide a comprehensive understanding of compensation and benefits benchmarks.
The users
CEOs, HR leaders, and Finance leaders
About Compete
Compete is a platform that offers insights into a company's employee compensation and benefits relative to the market. It utilizes data from numerous tech companies to provide a comprehensive understanding of compensation and benefits benchmarks.
The users
CEOs, HR leaders, and Finance leaders
About Compete
Compete is a platform that offers insights into a company's employee compensation and benefits relative to the market. It utilizes data from numerous tech companies to provide a comprehensive understanding of compensation and benefits benchmarks.
The users
CEOs, HR leaders, and Finance leaders
The process
Team member: CEO, Product manager and product designer (me). The main question was asked is What are the best practices to implement in freemium strategy for higher conversion rate?
Challenge 1 The first step to implement the freemium model is to change the user onboarding flow: from monthly subscription that starts with a sales person, after that goes to a CX who accompanies the user in the onboarding process, after that our support person validates the data and finally they enter the system. To a freemium-to-premium model self and automate onboarded.
Solution: make a new sign up flow
Old sign up flow
Every new customer goes through a sales process for a monthly subscription, enter his data through excel or make integration, then they complete the onboarding process by mapping manually any missing fields before gaining access to the platform.
Old Flow
Every new customer goes through a sales process for a monthly subscription, enter his data through excel or make integration, then they complete the onboarding process by mapping any missing fields before gaining access to the platform.
New sign-up flow
The user sign up through the platform, adding company details and then to through automatic onboarding process, which means that after integration our algorithm mapping the missing fields to the user and making validation.
New freemium flow
Currently, each new customer follows this flow:
Sign up by providing company information.
Enter the platform.
Perform integration and onboard by mapping any missing fields.
Gain free access to the limited product.
Optionally upgrade to unlock full access.
Signing up and enter to Compete
After signing up and filling company details, users are entering to the new home page. At this stage, as there is no data present, a single CTA is consistently available on every screen: integrating the HR platform with Compete.
After signing up and filling company details, users are entering to the new home page. At this stage, as there is no data present, a single CTA is consistently available on every screen: integrating the HR platform with Compete
Freemium user
Upon integration with Compete as a freemium user, access to limited features is granted. Premium features are easily recognizable. allowing users to simply click on them, triggering an in-app prompt encouraging them to upgrade their plan. Additionally, there will be a permanent 'Upgrade' button prominently displayed in the top menu.
How to convert freemium into premium users
The success of our freemium strategy hinges on our value offering to users. While we aim to provide value for free to keep users engaged, we must strike a balance. Offering too much for free, satisfying all their needs, might deter conversions to paid users.
To achieve this balance, we pinpoint the most-used features and set usage limits to enhance the freemium experience:
#1
challenge 2- what are the features Offer limited features to freemium users:
Offering limited access alone is ineffective unless users knows what they're missing. We strategically showcase premium features where users can easily see them.
The benchmark, at the core of our product, contains the highly-utilized leveling feature. In the freemium version, a simplified level is available, while the detailed level is unlocked upon upgrading. Consequently, premium users will enjoy the most accurate benchmarks, impacting data precision across various screens, including role search, overview, and the people page.
People page
Free tier users will only be able to use Simplified job levels within the system. Simplified level column- showing a group of levels that the employee is part of. Percentile range column- showing a range of percentiles that the employee is part of (and not an exact percentile)
Role search
Free tier users will only be able to use Simplified job levels within our system The toggle leveling mode appears in simplified mode, can see that the leveling data appears only in that mode Once clicking the mode toggle button - the upgrade pop up will display.
#2
Add feature usage limits for free users:
Most users were mainly logging in to use the role search screen and their main action is search for a role, therefore the decision is to limit the amount of searches to 10 searches per account per month in order to make them upgrade. the number of searches will appear on the most used feature on the top menu across the platform.
#2
Add feature usage limits for free users:
Most users were mainly logging in to use the role search screen and their main action is search for a role, therefore the decision is to limit the amount of searches to 10 searches per account per month in order to make them upgrade. the number of searches will appear on the most used feature on the top menu across the platform.
Each user will see the indication of how many searches are used within the role search bar, a banner with the CTA- book a meeting will be displayed within the role search and once hitting the limit - the role search box will be grayed out and only the upgrade banner will be available.
if users reach their usage limits, trigger an in-app prompt, showing them how to extend their interaction with an easy upgrade.
#3
Improve conversion rates through by highlighting free version limitations:
To help free users realize what they're missing, we've added a "Pro" indication to every paid feature. Clicking on "Pro" triggers a popup that outlining the limitations of that feature and emphasizing the added value of the premium version. For example: limited filters, export, users and executive roles.
#3
Improve conversion rates through by highlighting free version limitations:
To help free users realize what they're missing, we've added a "Pro" indication to every paid feature. Clicking on "Pro" triggers a popup that outlining the limitations of that feature and emphasizing the added value of the premium version. For example: limited filters, export, users and executive roles.
#4
Drive premium feature discovery through in-app prompts:
To boost conversion rates, we consistently nudge free users about the advantages of upgrading to the paid version. Upon clicking any "Pro" feature, an upgrade popup will appear, featuring a relevant CTA. In our initial iteration, as we're not handling pricing and payment within the platform in this stage, the CTA button directs users to schedule a meeting with our sales team.
Primium user
After upgrade the user get full access to the platform with the main features: unlimited role searches, detailed benchmark and specific percentile per employee.
People page
Premium users will be able to use Simplified and Detailed job levels within the system. Detailed level- Show a column that is showing the level that the employee is part of Percentile - Show a column that is showing an exact employee percentile
Role search
Premium users will be able to use unlimited searches, include executive roles. And the Detailed job levels within our system will be available
Continuous Improvement:
Collect feedback and make improvements: To gather feedback from free users to refine our freemium offer and improve the conversion rates. Testing and Optimization:
Run A/B tests to evaluate different messaging, pricing options, and placement of upgrade prompts.
the key is to continuously assess and refine the freemium strategy based on our user feedback and conversion data to achieve optimal results..
