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Customer lifetime value

success-lifetime

Background

A leading provider of graduate management admissions tests launched a project to develop a new generation of their flagship test preparation software application. This was the first time our client would be developing a desktop application in-house. The application would be distributed in a Freemium model– that is, a core set of features for free to all users with pay-for-upgrade features available for users who wished to extend their experience.

Our response

WBN engaged with the client in the planning stages of the project, helping to frame and recommend important decisions about platform choice and long-term strategy. Most importantly, WBN was able to develop a set of requirements for building a robust analytics mechanism into the software whereby our client would be able to collect a vast amount of information about how its customers were using the product. Additionally, WBN was able to guide the evaluation, selection and implementation of a software license management solution to protect and deliver premium upgrades as a way to monetize the Freemium distribution model.

Results

Our client successfully launched their product in April 2012 after a successful 10-month development effort. For the first time, it has valuable information flowing into its data warehouse that is already feeding the next phase of strategy for an improved user experience, event-driven marketing and new product development. Additionally, premium upgrades have proven to be a reliable and significant new revenue stream for our client.