Innovative Pricing & Packaging Strategies

Marketing Panel

Brian Bell CMO

Joe Andrews Sr. Director, Product

Marketing @brianbell123 @andrewsjoe

In  The  Subscrip/on  Economy,    Focus  Is  On  Rela/onships  

Product Relationships

BUY NOW SUBSCRIBE

Three  Strategic  Growth  Levers  in  Subscrip/on  Based  Businesses

Increase  Value  of  Your  Customers  

Reduce    Churn  

Acquire    New  Customers  

Pricing  &  Packaging  Supports    Your  Key  Growth  Strategies

$

PRICE   ITERATE  

How  Do  I  Get  My  Arms  Around    My  Pricing  Strategy?

CMO

How do I balance growth & revenue?

How  to  I  think  about  choice  vs.  simplicity?  

Do  I  price  for  new  accounts  or  exis@ng?  

How  do  I  price    vis-­‐à-­‐vis  compe@@on?  

How  do  I  improve      Time-­‐To-­‐Market  &  opera@onalize?  

Pricing  in  a  product  world?

Cost  

Price  

TIME  

$  

PROFIT  

In  the  Subscrip/on  World,    Pricing  is  Based  on  Recurring  Usage

Consumers  Have  Unique  Needs  

It’s  a  Compe//ve,  Dynamic  Market

The  challenge:    Where  to  focus  &  where  to  start?

Company Launch

International Growth

Revenue Enhancement

Product Expansion

Pricing Optimization

BUS I N E S S   MATUR I T Y  

CO

MP

LE

XI

TY  

Product  Upgrade  

Different  Billing  Frequencies  

Simple  Monthly  Recurring  

Product  Bundles  

Add-­‐On  Products  

A/B  Tes@ng  

Usage  &  Overage  

Pricing  Tiers   Regional  Pricing  

Mul@ple  Currencies  

This  is  Not  Where  to  Start

Con/nued…

Con/nued…

And  con/nued  again…

Start  Simple,  Iterate

1   2   3  Simple  Recurring    Model  

More  Advanced  Op/ons  

Basic  Itera/ons  

Four  Basic  Subscrip/on  Price  “Metrics”  

1.   One-­‐/me  

1.   One-­‐/me  (setup)    2.   Fixed  recurring  3.   Per  unit/user  4.   Usage  models    

Relationships

Product

Consider  Fixed  Recurring  Model  to  Start

Focus  on  Core  Value  Prop  for  Target  Customers  

Edi/on  Strategy  To  Address  Segments

Serve  Different  Customers  With  Right  Features  and  Price  Points      

As  You  Iterate,    Add  More  Basic  Op/ons  

1   2   3  Simple  Recurring    Model  

More  Advanced  Op/ons  

Basic  Itera/ons  

Use  a  Promo/onal  Strategy

Offer  Full  Trials  to  Drive  Adop/on    

Consider  a  Freemium  Strategy

Give  Away  Base  Product  to  Rapidly  Acquire  Customers  

Bundling  Strategy

Offer  Flexibility  &  Cross-­‐Sell  Offerings  

Longer-­‐Term  Op/ons  to    Lock  in  Customers

Reduce  Churn  &  Increase  Commitments  (TCV)  

More  Advanced  Op/ons

1   2   3  Simple  Recurring    Model  

More  Advanced  Op/ons  

Basic  Itera/ons  

Usage  Based  Pricing

Pay  as  You  Go  &  Limit  Risk  for  Customers  

Interna/onal  Pricing

Address  Different  Market  &  Segment  Requirements  

US  Pricing  A   Asia  Pricing  B  

Tes/ng  &  Itera/ng

Op/mize  Both  Promo/onal  &  Core  Pricing  Strategies  

ITERATE  

Be  Mindful  When  Making  Changes  

Talk  to  Customers  &  Communicate  Changes  Effec/vely  

Lessons  From  Our  Customers

1.  Pricing and packaging is a new strategic weapon

2.  Start simply…then iterate with more basic strategies

3.  Four basic pricing metrics for subscription businesses

4.  Leverage a free promotional strategy

5.  Test, test, test…

6.  Be mindful of communicating and deploying changes to your customers

Meet  the  Panelists

HTK Justin Bowser

Head of Online Business

@jkbowser

Eclipse Pete Tomlinson

Sales & Marketing Director

@pete_tomlinson

Centrastage Christian Nagele

CEO @ChristianNagele

CloudBees Francois Dechery VP, International

Development @francoisdechery

Zuora Brian Bell

CMO @brianbell123

#subscribed13

Headspace Shona Mitchell

Managing Director

End.