Articles by Kieran Flanagan
- The Importance of Product-Channel Fit in Freemium
Product-channel fit is important for the success of freemium business models. Companies need to acquire and engage both passive users as well as those actively seeking solutions. HubSpot has been successful through organic search traffic that educates passive users about their marketing product. However, their CRM product is a harder sell to passive users and has less relevant search traffic. To improve fit, companies should focus on channels where potential customers are actively searching and provide lower-friction offers to passive users. Identifying the right product-channel fit can influence a company's marketing strategy and help avoid costly pivots away from freemium down the line. Proper fit is critical, as seen with Viddy's demise after losing access to their primary growth channel on Facebook.