The CMO's Guide to the Subscription Economy: Innovative Pricing and Packaging Strategies...
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Marketing Panel Innovative Pricing & Packaging Strategies Brian Bell CMO Joe Andrews Sr. Director, Product Marketing @andrewsjoe @brianbell123
description
Learn strategies for accelerating your marketing levers to drive business growth and hear best practices first-hand from businesses that have done it. Learn how to use pricing and packaging as a tool to increase customer acquisition, value per customer and reduce churn. Learn about how to leverage new subscription commerce capabilities across multiple channels.
Transcript of The CMO's Guide to the Subscription Economy: Innovative Pricing and Packaging Strategies...
Marketing Panel Innovative Pricing & Packaging Strategies
Brian Bell CMO
Joe Andrews Sr. Director, Product Marketing
@andrewsjoe @brianbell123
In The Subscription Economy, Focus Is On Relationships
Product Relationships
BUY NOW SUBSCRIBE
Three Strategic Growth Levers in Subscription Based Businesses
Increase Value of Your Customers
Reduce Churn
Acquire New Customers
$
PRICE ITERATE
Pricing and Packaging Supports Your Key Growth Strategies
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 Product World
Cost
Price
TIME
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PROFIT
In the Subscription World, Pricing is Based on Recurring Usage
Four Basic Subscription Price “Metrics”
1. One-‐:me
1. One-‐:me (setup) 2. Fixed recurring 3. Per unit/user 4. Usage models
Relationships
Product
Consumers Have Unique Needs
It’s a Competitive, Dynamic Market
The Challenge: Where to Focus and 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
Continued…
Continued…
And Continued Again…
Start Simply, Then Iterate
1 2 3 Simple Recurring Model
More Advanced Op:ons
Basic Itera:ons
Consider Fixed Recurring Model to Start
Focus on Core Value Prop for Target Customers
As You Iterate, Add More Basic Options
1 2 3 Simple Recurring Model
More Advanced Op:ons
Basic Itera:ons
Use a Promotional 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 Options to Lock in Customers
Reduce Churn & Increase Commitments (TCV)
More Advanced Options
1 2 3 Simple Recurring Model
More Advanced Op:ons
Basic Itera:ons
Usage Based Pricing
Pay as You Go & Limit Risk For Customers
International Pricing US Pricing A Asia Pricing B
Address Different Market & Segment Requirements
Testing & Iterating
Op:mize Both Promo:onal and Core Pricing Strategies
ITERATE
Be Mindful When Making Changes
27 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
Demandbase Greg Ott, CMO
Fuzebox Eran Shtiegman
VP Product
Insideview Brian Kelly
CMO
Zuora Brian Bell, CMO
@brianbell123
MuleSoZ Chris Purpura
VP & GM @chrispurpura
Marketo Bill Binch SVP Sales
@bkkelly
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