Innovative Pricing & Packaging Strategies
Marketing Panel
Brian Bell
CMO
Joe Andrews
Sr. Director, Product
Marketing
@bria...
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	
  Cu...
Pricing	
  &	
  Packaging	
  Supports	
  	
  
Your	
  Key	
  Growth	
  Strategies
$
PRICE	
   ITERATE	
  
How	
  Do	
  I	
  Get	
  My	
  Arms	
  Around	
  	
  
My	
  Pricing	
  Strategy?
CMO
How do I balance
growth & revenue?
Ho...
Pricing	
  in	
  a	
  product	
  world?
Cost	
  
Price	
  
TIME	
  
$	
  
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
E...
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	
  
Basi...
Four	
  Basic	
  Subscrip/on	
  Price	
  “Metrics”	
  
1.  One-­‐/me	
  
1.  One-­‐/me	
  (setup)	
  	
  
2.  Fixed	
  rec...
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	
  Pric...
As	
  You	
  Iterate,	
  	
  
Add	
  More	
  Basic	
  Op/ons	
  
1	
   2	
   3	
  
Simple	
  
Recurring	
  	
  
Model	
  
...
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...
Usage	
  Based	
  Pricing
Pay	
  as	
  You	
  Go	
  &	
  Limit	
  Risk	
  for	
  Customers	
  
Interna/onal	
  Pricing
Address	
  Different	
  Market	
  &	
  Segment	
  Requirements	
  
US	
  Pricing	
  A	
   Asia	
  P...
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...
Meet	
  the	
  Panelists
HTK
Justin Bowser
Head of Online
Business
@jkbowser
Eclipse
Pete Tomlinson
Sales & Marketing
Dire...
The Marketing Perspective Panel: Innovative Pricing & Packaging Strategies
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The Marketing Perspective Panel: Innovative Pricing & Packaging Strategies

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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.

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The Marketing Perspective Panel: Innovative Pricing & Packaging Strategies

  1. 1. Innovative Pricing & Packaging Strategies Marketing Panel Brian Bell CMO Joe Andrews Sr. Director, Product Marketing @brianbell123 @andrewsjoe
  2. 2. In  The  Subscrip/on  Economy,     Focus  Is  On  Rela/onships   Product Relationships BUY NOW SUBSCRIBE
  3. 3. Three  Strategic  Growth  Levers  in   Subscrip/on  Based  Businesses Increase   Value  of  Your  Customers   Reduce     Churn   Acquire     New  Customers  
  4. 4. Pricing  &  Packaging  Supports     Your  Key  Growth  Strategies $ PRICE   ITERATE  
  5. 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. 6. Pricing  in  a  product  world? Cost   Price   TIME   $   PROFIT  
  7. 7. In  the  Subscrip/on  World,     Pricing  is  Based  on  Recurring  Usage
  8. 8. Consumers  Have  Unique  Needs  
  9. 9. It’s  a  Compe//ve,  Dynamic  Market
  10. 10. The  challenge:     Where  to  focus  &  where  to  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  
  11. 11. This  is  Not  Where  to  Start
  12. 12. Con/nued…
  13. 13. Con/nued…
  14. 14. And  con/nued  again…
  15. 15. Start  Simple,  Iterate 1   2   3   Simple   Recurring     Model   More   Advanced   Op/ons   Basic   Itera/ons  
  16. 16. 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
  17. 17. Consider  Fixed  Recurring  Model  to  Start Focus  on  Core  Value  Prop  for  Target  Customers  
  18. 18. Edi/on  Strategy  To  Address  Segments Serve  Different  Customers  With  Right  Features  and  Price  Points      
  19. 19. As  You  Iterate,     Add  More  Basic  Op/ons   1   2   3   Simple   Recurring     Model   More   Advanced   Op/ons   Basic   Itera/ons  
  20. 20. Use  a  Promo/onal  Strategy Offer  Full  Trials  to  Drive  Adop/on    
  21. 21. Consider  a  Freemium  Strategy Give  Away  Base  Product  to  Rapidly  Acquire  Customers  
  22. 22. Bundling  Strategy Offer  Flexibility  &  Cross-­‐Sell  Offerings  
  23. 23. Longer-­‐Term  Op/ons  to     Lock  in  Customers Reduce  Churn  &  Increase  Commitments  (TCV)  
  24. 24. More  Advanced  Op/ons 1   2   3   Simple   Recurring     Model   More   Advanced   Op/ons   Basic   Itera/ons  
  25. 25. Usage  Based  Pricing Pay  as  You  Go  &  Limit  Risk  for  Customers  
  26. 26. Interna/onal  Pricing Address  Different  Market  &  Segment  Requirements   US  Pricing  A   Asia  Pricing  B  
  27. 27. Tes/ng  &  Itera/ng Op/mize  Both  Promo/onal  &  Core  Pricing  Strategies   ITERATE  
  28. 28. Be  Mindful  When  Making  Changes   Talk  to  Customers  &  Communicate  Changes  Effec/vely  
  29. 29. 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
  30. 30. 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
  31. 31. End.  

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