A new study conducted by iYogi Insights, the research division of the on-demand remote tech support services provider, reveals that 42% of consumers subscribe to new products and services after experiencing them for free. Based on a survey of more than 2,000 iYogi customers, the research reveals that a Freemium offering is an effective method of market penetration for new and emerging products or service categories.
iYogi’s 2012 Freemium Research Report examined consumer adoption of new products and services. Key findings and research highlights include:
Movie and video consumption has led to the highest rates of conversion from Freemium to pay-based subscriptions by as much as 65%;
Cloud-based services have also been successful in acquiring subscribers with this model, reflecting an average conversion rate of 41%;
Computer security follows with 37%, followed by productivity tools, music services, VoIP and more;
Conversion rates were highest among first time users with 68% of first-time users stating they subscribed to movie or video streaming services after the free trial period, followed by 54% for productivity tools and 51% for Cloud services.