The Marketing Perspective Panel: Innovative Pricing & Packaging Strategies
Transcript of The Marketing Perspective Panel: Innovative Pricing & Packaging Strategies
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
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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
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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.