"User" and "Customer" are Different Animals In the Freemium World

Commentary

The New York Times' recent piece on Evernote inadvertently cracked open an important question in the "freemium" discussion: What's the difference between a user and a customer?

The language attached to freemium business models requires specificity because these businesses associate expectations with distinct user groups. With freemium, there's a vast canyon between free access (users) and pay access (customers); they are not synonymous. That's why the following clarifications are necessary:

User -- A visitor who accesses a site, product or platform, but does not pay. Example: I use Dropbox, but I don't pay for the top-tier services (yet ...)

Customer -- A converted user who now pays for premium access or services. Example: As my storage needs increase and I become more reliant on Dropbox, I'll likely convert into a paying customer.

I realize this entire post teeters on nitpicky semantics, but heated debates require clear boundaries.

Sidenote: I highly recommend the Times' Evernote story. It's a great representation of the opportunities and obstacles that come with freemium models, and it has actual numbers.

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Mac Slocum I'm an editor, producer, writer, teacher and Red Sox fan. If you want to know more, read my bio.



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