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Use Case: Customer Converts from Freemium to Paid Subscription

Assumptions and Preconditions

  • Both the Freemium and Paid subscription products have been set up in the Commerce Assistant.
  • The customer's payment information was captured during a past purchase.
  • The Freemium subscription has the status Active.
  • The billing interval for the Freemium subscription product and the Paid subscription product are the same (in this use case, annually).
  • The renewal date for the Paid subscription will be based on the date that the customer purchased the Freemium subscription.

Description

  1. On January 1st, a customer uses the cleverbridge checkout process to purchase the client's Freemium subscription to a photo upload and sharing service that includes up to 10 gigabytes of storage space.
  2. On July 1st, the customer would like additional storage space, and subscribes to the Paid service for $25 annually. The customer visits a client-hosted page to upgrade the subscription. The client uses the Update Subscription Item API endpoint to replace the Freemium product with the Paid product.
  3. The cleverbridge platform automatically bills the customer a pro-rated amount for the rest of the billing interval.
  4. On July 1st of the following year, the cleverbridge platform automatically bills the customer $25 for the Premium plan for the new annual billing interval.

Options

Although not utilized in this use case, the following options are also available:

  • Reduce the price of the Paid subscription by applying a discount coupon that was set up in the Commerce Assistant. This discount is applied to all future billings of the subscription.
  • The client creates and hosts the sign-up process for the Freemium subscription. When a Freemium customer purchases the Paid subscription, the customer is redirected to the cleverbridge checkout process to capture payment information to create the subscription on the cleverbridge platform.

Illustration

sub bill customer acquistion conversion