the cmo's guide to the subscription economy: innovative pricing and packaging strategies...
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
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Marketing Panel Innovative Pricing & Packaging Strategies
Brian Bell CMO
Joe Andrews Sr. Director, Product Marketing
@andrewsjoe @brianbell123
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In The Subscription Economy, Focus Is On Relationships
Product Relationships
BUY NOW SUBSCRIBE
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Three Strategic Growth Levers in Subscription Based Businesses
Increase Value of Your Customers
Reduce Churn
Acquire New Customers
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$
PRICE ITERATE
Pricing and Packaging Supports Your Key Growth Strategies
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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?
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Pricing in Product World
Cost
Price
TIME
$
PROFIT
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In the Subscription World, Pricing is Based on Recurring Usage
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Four Basic Subscription Price “Metrics”
1. One-‐:me
1. One-‐:me (setup) 2. Fixed recurring 3. Per unit/user 4. Usage models
Relationships
Product
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Consumers Have Unique Needs
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It’s a Competitive, Dynamic Market
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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
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This is Not Where to Start
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Continued…
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Continued…
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And Continued Again…
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Start Simply, Then Iterate
1 2 3 Simple Recurring Model
More Advanced Op:ons
Basic Itera:ons
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Consider Fixed Recurring Model to Start
Focus on Core Value Prop for Target Customers
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As You Iterate, Add More Basic Options
1 2 3 Simple Recurring Model
More Advanced Op:ons
Basic Itera:ons
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Use a Promotional Strategy
Offer Full Trials to Drive Adop:on
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Consider a Freemium Strategy
Give Away Base Product to Rapidly Acquire Customers
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Bundling Strategy
Offer Flexibility & Cross-‐Sell Offerings
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Longer-Term Options to Lock in Customers
Reduce Churn & Increase Commitments (TCV)
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More Advanced Options
1 2 3 Simple Recurring Model
More Advanced Op:ons
Basic Itera:ons
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Usage Based Pricing
Pay as You Go & Limit Risk For Customers
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International Pricing US Pricing A Asia Pricing B
Address Different Market & Segment Requirements
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Testing & Iterating
Op:mize Both Promo:onal and Core Pricing Strategies
ITERATE
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Be Mindful When Making Changes
27 Talk to Customers & Communicate Changes Effec:vely
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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
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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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