New York City, New York (PressExposure) May 10, 2012 -- A new study conducted by iYogi Insights, the research division of the leading independent provider of on-demand remote tech support services, reveals that 42 percent 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 key to the success and market penetration for new and emerging products or service categories.
iYogi's 2012 Freemium Research Report examines 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 percent;
Cloud-based services have also been successful in acquiring subscribers with this model, reflecting an average conversion rate of 41 percent;
Computer security follows with 37 percent, followed by productivity tools, music services, VoIP and more;
Conversion rates were highest among first time users with 68 percent of first-time users stating they subscribed to movie or video streaming services after the free trial period, followed by 54 percent for productivity tools and 51 percent for Cloud services; and
58 percent of respondents said that iYogi was their first experience of a one-on-one consultation with a tech expert.
All respondents indicated that they had sampled freemium offerings for a wide range of products and services in the last two years, with 39 percent stating that they had also experienced freemium one-on-one consultations with experts for various services including career and/or life coaching, energy savings, nutrition & fitness, tech support and Lasik surgery.
"The Internet has led to the launch of a wide range of innovative products and services that change the way we interact with and use media and other goods. People often don't realize the value of these products in their everyday lives until they actually try them, especially if they have to use their hard-earned money to access them," says Vishal Dhar, co-founder and president, Marketing, iYogi. "This new research reveals that a free introductory offer goes a long way in unlocking the value of a new product or service and leads to higher acceptance among potential buyers. In fact, pioneering services need to use a freemium if they want to achieve their business goals."
To read the detailed report, please visit http://insights.iyogi.com.