3 marketing hacks for a subscription based business

Pam CheingMarketing Manager

Pam is the Marketing Manager at Ezypay; is interested in SEO, Google Analytics and

contributing to the coffee and bacon economy.

Meera KrishnanWebsite Developer & DesignerMeera is the Web Developer and Designer at Ezypay, who has loads of amazing ideas and likes to explore new technology.

3 MARKETING HACKSTO TURN ANY BUSINESS INTOA SUBSCRIPTION SERVICE

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3 MARKETING HACKSTO TURN ANY BUSINESS INTOA SUBSCRIPTION SERVICEVERY, VERY, VERY VALUABLE





3 MARKETING HACKSTO TURN ANY BUSINESS INTOA SUBSCRIPTION SERVICE

Increase yourSALES REVENUE

in the next

12 months

by at least

40%

HACK 1 Converting into a subscription-based business model

HACK 2 Create the Right Pricing Strategy

HACK 3 Use the right technology

HACK 4 BONUS

Q&A

What we will cover today

Something we’ve tested and refined over twenty yearsof being in the subscription business

Some brought us good results while others were colossal failures

Share ideas that we tried and actually worked for us

Balance increasing the revenue VS retaining more customers

DISCLAIMER

Transactional Model

Converting into a subscription-based business modelHACK 1

The Difference

HACK 1

SubscriptionBasedVS

ACCESSTransactiona

l

Converting into a subscription-based business model

Converting Into ASubscription-Based Business Model

Subscription-BasedTransactional


Why Subscription-BasedBusiness Model

HACK 1

Promotes cash flow The monthly price tends to be lower than a standard transactional price



HACK 1


Consumers have better ownership Customers can choose a variety of services or product from the package as and when it suits their needs



HACK 1


Consumers have better ownership Customers can choose a variety of services or product from the package as and when it suits their needs

Retains customersBy building an online community, you give your customers a reason to keep coming back for more.Converting into a subscription-based business model

5 Major Types OfSubscription-Based Business

HACK 1

Digital subscriptions Social networks

Small businessesthat build connectionwith their customers

Non-profits andtrade associations

Loyalty programs


Setting The Foundation

HACK 1

=BUSINESS Digital Subscription

Loyalty Program

Online Community

Local Community

Other Combination


Your Team

HACK 1

Transaction Subscription-basedCEO Product driven Relationship driven

Product Team Big releases Regular iterationsSales Big game hunting Farming

Support Minimizing anger Maximize loyaltyMarketing One-way

communicationTwo-way

communicationIT &

OperationsCustom solutions, requiring plenty of

in-house staff

Outsourcing non core requirements, leveraging on the

cloud and avoiding customisation


You Need To

HACK 1

Empoweryour frontline staff to be able to recognize your members as individuals and take good care of them

Invest

Measure

Rethink

Promote


You Need To

HACK 1

Empower

Investin your community and the people to manage the relationships and ensure their success

Measure

Rethink

Promote


You Need To

HACK 1

Empower

Invest

Measurethe success of salespeople not by the transaction value but on the basis of customer lifetime value

Rethink

Promote


You Need To

HACK 1

Empower

Invest

Measure

Rethinkhow you quantify customer satisfaction and quality support

Promote


You Need To

HACK 1

Empower

Invest

Measure

Rethink

Promotea culture of marketing innovation because it is now no more enough to just stick to key types of campaigns and activities


A Typical Sales Funnel

HACK 1

Aware

Trial

Sign Up

Loyal Members

Total Available Market

Aware butnot engaged

Happy Customers


Subscription-Based Funnel

HACK 1

Total Available Market

Marketing done for you!

Aware

Trial

Sign Up

Loyal Members

Increasing Engagement

(CLV)

Referral Source

Forever Transaction


If The Price Is Right

HACK 2

You’ll be able to predict your cash flow better

Pricing for a subscription-based businessis not as simple as it seems

Create the right pricing strategy

4 Revenue Streams

HACK 2

1. Subscription• Most people prefer to have

three pricing options • Most likely to choose the middle

option• Price according to the value

your customer receives • Be prepared to adjust the

pricing

2. A La Carte Services

3. Supplementary Products

4. Partnership Streams


4 Revenue Streams

HACK 2

1. Subscription

2. A La Carte Services• Once-off, special products or

services• Don’t automatically add on

these services into higher tier pricing




4 Revenue Streams

HACK 2

1. Subscription


3. Supplementary Products• Offer additional products

that make sense and add value to your service or product



4 Revenue Streams

HACK 2

1. Subscription



4. Partnership Streams• Effective and money-saving

method of increasing your income and increasing the value of your service without much investment


FREEBIE or FREEMIUM?

HACK 2 Create the right pricing strategy

We offer free stuff to build interest andto showcase the value of their product or service

When would be the best time to offer something

for free or a freemium?

WHAT IS THE DIFFERENCE?

We offer free stuff to build interest andto showcase the value of their product or service

When would be the best time to offer something

for free or a freemium?

WHAT IS THE DIFFERENCE?

FREEBIE

• Offers the full experience

FREEMIUM

• Offers the most basic subscription level

• Meant to build awareness• Build a community of

users





The danger of providing a freemium is that you may find it challenging to convert majority of users into paying customers.

It is a good idea if having more users can add more value to your business.


HACK 2 Create the Right Pricing Strategy


HACK 4 BONUS

Q&A

Recap

Using The Right Technology


1. Marketing Automation• Helps you keep track and

measure the performance of different levels in your sales funnel

• If the customer leaves, you can device campaigns to win them back

2. A Good CRM

3. Subscription-BasedBilling System

4. Customer Success Tracker



1. Marketing Automation

2. A Good CRM



Marketing

Sales

Customer Support

Lead

Convert to Customer

Retain Customer




2. A Good CRM

3. Subscription-BasedBilling System• Create payment plans that

make sense to their industry• Automated to collect

payments every day, week or month





2. A Good CRM


4. Customer Success Tracker• The happier your customers

are, the higher the likelihood of retention.

Conclusion

Hire more peopleHire new talent

Investing more into your business

Right mindsetRight priceRight tools

Passive Churn

HACK 4 BONUS – Passive Churn

Occurs when a business loses members not because of a bad product or service, but simply

because the customer had a bad payment transaction.

Failed Payment

HACK 4 BONUS – Passive Churn

Insufficient funds

Expired credit card

Cancelled credit card

S u c c e s s f u l Pa y m e n t C o l l e c t i o n

Established standard procedures in handling failed transactions

Automated process

Fully trained customer support team

3 marketing hacks for a subscription based business

Business

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