Converting into a subscription-based business model Benefits and negatives of subscription service Funnel system for subscription Create the right pricing strategy

1. 1
PART 17
SUBSCRIPTION AND
ADDING VALUE

2. SUBSCRIPTION VS NON SUBSCRIPTION
• Converting into a subscription-based business model
• Benefits and negatives of subscription service
• Funnel system for subscription
• Create the right pricing strategy
2

3. CONVERTING INTO A
SUBSCRIPTION-BASED BUSINESS MODEL
Transactional
Subscription
balance
increasing
revenue
Vs
retaining
customers
3

4. CONVERTING INTO A
SUBSCRIPTION-BASED BUSINESS MODEL
Subscription
Subscription &
Transactional
Subscription
&
Transaction
4

5. BENEFITS AND NEGATIVES OF
SUBSCRIPTION SERVICE
Your Business
Regular
cash flow
1
Loyalty
Program:
word usually
gets around
2
Provides spending
& insight trends
3
Negatives
Benefits Can be
expensive
to set up
1
Not everyone
likes to subscribe
2
Another set of
data to track
3
5

6. BENEFITS AND NEGATIVES OF
SUBSCRIPTION SERVICE
Your Customer
Can work out
cheaper in the
long run
1
Can usually
cancel any time
2
Can choose
from a variety
of services
3
Negatives
Benefits Can work out
expensive if not
using all the benefits
1
Sometimes you
have a yearly
subscription
2
Not everything
in the services
will benefit
everyone
3
6

7. 05
04
03
02
01
Awareness
Make customers
aware of the
subscription offer
by sending out an
email: subject title,
direct link. Or have
a banner on the
website.
FUNNEL SYSTEM
Trial
Offer a trial period
to entice new
customers to sign
up. You are more
likely to get
people to sign up
this way.
Sign Up
Make it easy to
sign up. Ensure
there is a direct
link in the email
content.
Follow Up
Either have an auto
email system set up
or manually email
out a follow up.
No Sign Up
New Offer
Offer a better
deal or
something else.
Limit the time fo
them to accept
the new offer.
Follow Up
If the new offer
is not accepted,
follow up again
with a last day
offer.
6
More
Customers
Offer Launch
No Sign Up
7

8. 05
04
03
02
01
Awareness
Make customers
aware of the
subscription offer
by sending out an
email: subject title,
direct link. Or have
a banner on the
website.
FUNNEL SYSTEM
Trial
Offer a trial
period to entice
new customers
to sign up. You
are more likely to
get people to
sign up this way.
Sign Up
Make it easy to
sign up. Ensure
there is a direct
link in the email
content.
Loyalty
This shows how
loyal customers
are and excited by
your products /
services.
Sign Up
Tag On
Referral
Scheme
If they can refer
more customers
they receive a
bonus, or both
receive a bonus.
Easy
Marketing
Customers will
market for you to
gain the benefits
of a referral
scheme.
6
More
Customers
Offer Launch
Signs Up
8

9. CREATE THE RIGHT PRICING STRATEGY
Offer 3 subscription options
Decide
which
benefits
to leave
out / in
Prepare to
adjust the
pricing or
special
offers
This will
drive
more
sales to
that
option
Consider
highlighting
the most
popular
option
i.e. join for
12 months
& get 3
months free
This will
tempt
people to
purchase
9

10. CREATE THE RIGHT PRICING STRATEGY
ORDER NOW
PLATINUM
Benefit 1
Benefit 2
Benefit 3
Benefit 4
£35/m
ORDER NOW
GOLD
Benefit 1
Benefit 2
Benefit 3
Benefit 4
£15/m
ORDER NOW
DELUXE
Benefit 1
Benefit 2
Benefit 3
Benefit 4
£45/m
subscription options example
10

11. Builds Awareness
Providing a taster of a product or
service gives customers an
awareness of what to expect. It can
also create excitement and the urge
to purchase.
Easier Conversions
It can make conversions easier,
providing the pricing structure is right
for what the customer is getting.
Balanced
Experience
Think of what features are a
necessity and make sure some are
available in the trial or free version,
with some left out. If you give away
too much, that leaves little desire to
purchase, but give away too little and
that can leave them feeling
uninspired.
The Experience
Give them the experience of the full paid
version. A free version or trial can offer the
full experience to some extent. However, if
it is a watered down version you must
make sure there are some good benefits to
this and offers worthwhile features.
Freemium / Trial
CREATE THE RIGHT PRICING STRATEGY
11

12. 12
GET CUSTOMER FEEDBACK
ORGANICALLY
User Report
https://www.userreport.com/
User report is based on two simple widgets – a survey
and a feedback widget. Running as an
integrated part of your website or app, it enables you to
have direct interaction with your users
and learn who your users are, what they are looking for
– and how they think you can improve.

13. ADDING VALUE
If you sign up I’ll give
you this for free
If you pay for the
online course, I’ll also
give you this for free
If you wouldn’t
pay for it, then
they won’t!
What is it they are
getting from your
product or service?
How is that going to
benefit them?
Look at how you can over deliver.
Take a step back and ask yourself:
“what would I want from this if I
were to pay for it”. What would you
expect?
13