Journal of the Academy of Marketing Science· 2026Q1
Pathways to premium: How habits and benefits shape conversion and retention in freemium subscription models
- 0citations
- Q1SCImago
- 2026year
Short summary
Freemium services can convert free users to paid subscribers by leveraging habits and perceived benefits, though free-tier habits can also create inertia, and overly strong premium habits may decrease retention.
AI-generated from the title and abstract; the full text is not read.
Key points
- Free-tier habits can increase conversion by reinforcing expected premium benefits but also cause inertia, anchoring users to free usage.
- Premium-tier habits and experienced premium benefits generally support paid conversion and long-term retention.
- An inverse-U relationship exists between premium-side habits and retention in discounted trials, with very strong habits leading to lower retention than moderate ones.
- The study uses four empirical field studies in a freemium subscription setting.
AI-generated from the title and abstract; the full text is not read.
Abstract
Abstract Numerous digital services rely on freemium models, yet the mechanisms that move users from free usage to premium subscriptions remain poorly understood. This research examines how expected benefits of premium access, experienced benefits during trials, and habit development in free and premium contexts jointly shape conversion and retention. Across four empirical field studies in a freemium subscription setting, we show that habits in the free version are double‑edged: they can increase conversion by reinforcing expected benefits of the premium version, yet also anchor users in continued free usage through inertia. Habits formed while using the premium version, together with experienced premium benefits, generally support paid conversion and long‑term retention. In discounted trial settings, we further identify an inverse‑U‑shaped relationship between premium‑side habits and retention, with very strong habits associated with lower retention than moderate levels. These insights inform the design of effective freemium and trial strategies.
The authors' abstract, as published at the source. Journal of the Academy of Marketing Science, 2026 · DOI ↗
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