Exploring Value Creation through the Freemium Business Model: A Multi-Case Study Approach

AUTHOR
Amit Gupta *
Vishal Gupta **

KEYWORDS
Freemium, value creation, innovation, strategy, Thematic analysis

ABSTRACT
The Freemium model, a business strategy where basic services are provided for free while advanced features are offered at a premium, has gained significant traction in the Indian digital market. This model is particularly effective in attracting a broad user base and converting some of these users into paying customers. In this study, five prominent Indian companies are explored to understand how they deliver value to their target customers using the freemium model. The Zott & Amit value creation model is used to identify four primary sources of value: Novelty, Lock-In, Complementarities, and Efficiency. This paper helps to analyse how these companies tailor their offerings to meet customer needs while driving revenue growth. The selected companies span various sectors, including fintechs, matrimony, and entertainment, reflecting the versatility of the Freemium approach across different industries. The analysis reveals that these companies leverage the Freemium model not only to attract users but also to enhance customer engagement, foster loyalty, and create a competitive edge in the rapidly evolving digital landscape. By offering a blend of free and premium services, these firms effectively build a foundation for sustainable growth while adapting to the unique dynamics of the Indian market.