In a digital marketplace, mixing "freemiums" and promotions can actually be a money maker
Conventional wisdom says it’s a mistake to slash prices when you’re already giving away part of your product.
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To promote or not to promote? That was the question leaders at a gaming company were debating when Julian Runge arrived as a consultant.
“They’d grown from Facebook gaming to mobile and now were debating how much to rely on sales and price promotions to acquire customers and boost revenue,” says Rungeopen in new window, a former doctoral fellow at Stanford Graduate School of Business who’s now at Northeastern University. “The managers were split between thinking promotions would be super helpful and crucial to use versus actually harming their revenue in the long term.”
This piece originally appeared in Stanford Business Insights from Stanford Graduate School of Business. To receive business ideas and insights from Stanford GSB click here: (To sign up : <a target="_blank" href=" https://www.gsb.stanford.edu/insights/about/emails"> https://www.gsb.stanford.edu/insights/about/emails</a>]]