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.

1. Marketing Panel
Innovative Pricing & Packaging Strategies
Brian Bell
CMO
Joe Andrews
Sr. Director, Product Marketing
@andrewsjoe@brianbell123

2. In The Subscription Economy,
Focus Is On Relationships
Product Relationships
BUY NOW SUBSCRIBE

3. Three Strategic Growth Levers in
Subscription Based Businesses
Increase
Value
of
Your
Customers
Reduce
Churn
Acquire
New
Customers

4. $
PRICE
ITERATE
Pricing and Packaging Supports Your
Key Growth Strategies

5. 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?

6. Pricing in Product World
Cost
Price
TIME
$
PROFIT

7. In the Subscription World, Pricing is
Based on Recurring Usage

8. Four Basic Subscription Price “Metrics”
1. One-­‐:me
1. One-­‐:me
(setup)
2. Fixed
recurring
3. Per
unit/user
4. Usage
models
Relationships
Product

9. Consumers Have Unique Needs

10. It’s a Competitive, Dynamic Market

11. The Challenge:
Where to Focus and Start?
Company
Launch
International
Growth
Revenue
Enhancement
Product
Expansion
Pricing
Optimization
B U S I N E S S
M A T U R I T Y
COMPLEXITY
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

12. This is Not Where to Start

13. Continued…

14. Continued…

15. And Continued Again…

16. Start Simply, Then Iterate
1
2
3
Simple
Recurring
Model
More
Advanced
Op:ons
Basic
Itera:ons

17. Consider Fixed Recurring Model to Start
Focus
on
Core
Value
Prop
for
Target
Customers

18. As You Iterate, Add More Basic Options
1
2
3
Simple
Recurring
Model
More
Advanced
Op:ons
Basic
Itera:ons

19. Use a Promotional Strategy
Offer
Full
Trials
to
Drive
Adop:on

20. Consider a Freemium Strategy
Give
Away
Base
Product
to
Rapidly
Acquire
Customers

21. Bundling Strategy
Offer
Flexibility
&
Cross-­‐Sell
Offerings

22. Longer-Term Options to
Lock in Customers
Reduce
Churn
&
Increase
Commitments
(TCV)

23. More Advanced Options
1
2
3
Simple
Recurring
Model
More
Advanced
Op:ons
Basic
Itera:ons

24. Usage Based Pricing
Pay
as
You
Go
&
Limit
Risk
For
Customers

25. International Pricing
US
Pricing
A Asia
Pricing
B
Address
Different
Market
&
Segment
Requirements

26. Testing & Iterating
Op:mize
Both
Promo:onal
and
Core
Pricing
Strategies
ITERATE

27. Be Mindful When Making Changes
27
Talk
to
Customers
&
Communicate
Changes
Effec:vely

28. 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

29. 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

30. END