The expansion of audiences and the attraction of new audiences are constant concerns for SMEs and freelancers. One of the most effective tools to achieve this goal is the right choice of product strategies.
In this post, we will explore three key approaches: free, premium and freemium, and provide useful tips for determining which strategy is right for your business.
In today's competitive business world, it is not enough to offer a quality product or service. The key to success is reaching a wider audience and attracting new customers.
This is where product strategies come into play. These strategies not only define how you present your product to the market, but also how you make it accessible to different types of audiences. Here are three different product strategies that you can implement in your SMB.
Free: the "free" strategy is based on offering a product completely free of charge. This approach can quickly attract a broad audience, as it removes the initial financial barriers for potential customers. While it may seem that giving away your product for free will not generate revenue, it is important to keep in mind that this strategy is generally used as a hook to attract users and then monetize them in other ways.
A notable example of this strategy is the business model of many mobile apps, which offer free versions with ads and then offer a premium version without ads or with additional features at a cost. This allows SMEs and freelancers to reach a wide audience, build a loyal user base and generate revenue through upgrades.
Premium: on the other hand, the "Premium" strategy focuses on offering a high-quality product at a higher price. If your product stands out for its exclusivity, advanced features or superior level of service, this strategy may be appropriate. While it may not appeal to as wide an audience as the "Free" strategy, it allows you to generate substantial revenue per sale.
For example, professional software products, where users are willing to pay more for advanced features or exceptional support. SMEs and freelancers can take advantage of this strategy by focusing on quality and excellence, attracting an audience that values these aspects.
Freemium: the "Freemium" strategy combines elements of the "Free" and "Premium" strategies. In this model, a free basic version of the product is offered, but additional features or advanced functionalities are offered at a cost. This allows SMEs and freelancers to reach a wide audience while generating revenue through upgrades.
A prime example of this strategy is Spotify, which offers a free version with ads and a premium version without ads and offline access. SMBs and freelancers can apply this approach by offering free basic services and then providing upgrade options to users who want a more complete experience.
Tips for choosing the most appropriate strategy for your SME
If you are thinking of applying any of these three product strategies in your SME, take into account the following aspects:
Know your audience: before choosing a strategy, understand who you are targeting. Does your audience value free, are they willing to pay for quality, or do they prefer a middle ground?
Evaluate your product or service: analyze the features and advantages of what you offer. Can you stand out in terms of quality, exclusivity or additional features?
Study the competition: observe how your competitors are positioned in the market and what strategies they are using.
Iterate and adapt: product strategies are not static. You can adjust them over time based on customer feedback and market trends.
Maintain a balance between value and price: whatever strategy you choose, make sure that the value perceived by your customers is in line with the price they are willing to pay.
In conclusion, product strategies are a powerful tool to expand audiences and audiences in the world of SMEs and freelancers. Whether you opt for "Free", "Premium" or "Freemium", the right choice will depend on your product, your audience and your business objectives.
As a final piece of advice, stay flexible and willing to adapt as your business and your target audience's preferences evolve. Best of luck!