Case Study Q3.docx

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Q3: Why did MailChimp ultimately succeed with a freemium model but Ning did not? Mailchimp was able to succeed with the freemium model over Ning due to many underlying factors. It was logical for Mailchimp to use the freemium model due its large potential audience and easy to use service. Mailchimp was able to attract a customer base by giving free services for its basic tools and only charging fees when customers wanted to add special features. (Laudon & Traver, 2015) Freemium worked for Mailchimp because the company had a greater retention rate compared to Ning. The strategy that Mailchimp implemented
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