Free mobility for everyone.
Free basic entertainment is commonplace.
Everyday we use tools and services with free basic versions which facilitate communication, provide information or entertainment. Successful and wide spread examples are Skype, Spotify as well as various game apps: The business model behind offers like these is called “freemium”, meaning that the basic use is free, while premium features are fee-based. This pricing strategy is widely used and can be very successful financially – as lately shown in reports of the sales performance of providers of mobile game apps.
It can be assumed that freemium models in comparison to single payment options generate various financial potentials.
Anyone can benefit from the model.
The usefulness of the model is obvious: While benefitting of a sufficient free offer including e.g. unlimited data – in the case of Spotify, the user can individually decide whether to upgrade his version by paying for additional features.
The premium features however are not mandatory, but provide greater mobility and an ad-free hence more convenient experience. The customer of the fee-based premium version actively decides to pay and therefore enjoy an added value – while the user of the basic version can still enjoy a good service.
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If we follow this topic according to mobility, all kinds of services could be based on such a model in the future – not only in a digital context, but far beyond: The mobility itself could be “free”, while paid services can be added and therefore allow an appropriate degree of luxury. Based on this principle, the question arises how companies such as Daimler AG can help shape this development, provide offers themselves and ultimately benefit of them. Join our discussion forum