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Secrets to Innovative Pricing and Packaging

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TO VIEW THE WEBINAR: http://info.zuora.com/MayPricingandPackaging_ArchiveLP.html

Pricing and packaging is the key to success for many subscription businesses, affecting both new customer acquisition and customer retention. While simple subscriptions to a service like Pandora may thrive for that audience, consumers of SaaS, Cloud and Communications businesses require offers and plans that are more custom-fit to their needs. It could be tiered pricing, charging for usage, upgrade plans, or segmented pricing, but finding the right pricing combinations makes the difference.

Zuora customer CollabNet has known this and experimented mercilessly to find the right price plans and packages for their customers. Join Guy Marion from CollabNet and Zuora's resident subscription business expert Kyle Christensen as we cover all of 2012's most innovative subscription pricing and packaging plans on this webinar.

Published in: Technology, Business

Secrets to Innovative Pricing and Packaging

  1. 1. Secrets to Innovative Subscription Pricing and Packaging
  2. 2. Building the Next Great Enterprise Software CompanyZuora Signs Over $1 Billion InSubscription Revenue In Q1 Built by Experts Used by Leaders
  3. 3. Meet the Panel Kyle Christensen Guy MarionSr. Director Product Marketing VP & GM CollabNet Cloud Serviceshttp://www.zuora.com http://codesion.com @kylechristensen @guy_marion
  4. 4. Innovators in Software Development in the Cloud dPaaS Dev Cloud Agile Open ALM Platform SubversionFounded Hybrid Cloud Development Collaborative Development ALM Communities Platform ALM 1999 2000 2007 2008 2009 2011 2012 Trusted by Leaders
  5. 5. CollabNet Cloud PlatformBackground• Best of breed development tool hosting, integration, and management• Replaces Codesion Cloud Platform (acquired in 2010) + 4,000 customers• Integrates cloud and on-premise• Business Grade platformBusiness Model• B2B SaaS/Cloud: Subscription Revenue• Direct: Self-service + transactional• Channels: Marketplace, product integrations, and Platform Partners• SaaS acquisition/BI engine CloudForge – the development platform (dPaaS) for managing hosted, integrated, and deployed applications
  6. 6. Commerce Has Evolved. BUY NOW 2001 2011By 2015, 35% of Global 2000 companies will generaterevenue through subscription-based services andrevenue models. April 2011: Building a Strategy for the Subscription Economy
  7. 7. The World is Shifting From Products to Services Technology Transportation? Retail? Music? A Video? Voice? Legal? Healthcare?We call this the Subscription Economy™
  8. 8. The Subscription Economy Imposes a CompletelyDifferent Set of Operating Rules on Business SystemsProduct Economy Subscription Economy Sell Units Monetizing Customer Relationships Price Per Unit Pay-as-you-Go Pricing Plans One-Time Orders Multiple Orders Over a Lifetime Forced to Pick a Customer Segment Sell to Consumers & Businesses Silos of Financial Time-Based, Interrelated Bookings, Data Billings, & Revenue
  9. 9. The Subscription Economy Demands a New Platform BUY NOW http://www.readwriteweb.com/cloud/2010/06/zuora-announces-z-commerce-for.php
  10. 10. The World’s First Application Suite Built for the Subscription Economy Subscription Subscription SubscriptionCommerce Billing Finance We found Zuora and the light bulb went off: a business operations platform designed especially for subscription businesses like ours.
  11. 11. How Are Companies Pricing in the Subscription Economy?
  12. 12. Strategy #1: Freemium Upsell Strategy Start with free and upsell to paid.
  13. 13. Strategy #2: Multiple Edition Strategy Multipleeditions for differentaudiences.
  14. 14. Strategy #3: Promotional Strategies Start with a free trial. 2-months free with annualprepayment.
  15. 15. Strategy #4: Pay-as-you-Go Strategy Pricing based on consumption units.
  16. 16. Strategy #5: Overage StrategyOverage pricingapplied beyondallocated usage.
  17. 17. Strategy #6: Bundling Strategy Create flexible pricing & packaging bundles.
  18. 18. Strategy #7: Segmentation Strategy A US Pricing B Asia Pricing Have unique pricing for different markets and/or different types of customers.
  19. 19. CollabNet’s Cloud Journey
  20. 20. CollabNet Cloud Journey 2004: CVSDude-CVS & Subversion Hosting (“Freemium”)
  21. 21. CollabNet Cloud Journey 2004: CVSDude-CVS & Subversion Hosting (“Freemium”) 2008: Enterprise-grade SCM & Deployment Services (“Multiple Edition”)
  22. 22. CollabNet Cloud Journey 2004: CVSDude-CVS & Subversion Hosting (“Freemium”) 2008: Enterprise-grade SCM & Deployment Services (“Multiple Edition”) 2010: SaaS business expansion & automation (B2B SaaS – Velocity Sales)
  23. 23. CollabNet Cloud Journey 2004: CVSDude-CVS & Subversion Hosting (“Freemium”) 2008: Enterprise-grade SCM & Deployment Services (“Multiple Edition”) 2010: SaaS business expansion & automation (B2B SaaS – Velocity Sales) 2012: CloudForge- development Platform as a Service (dPaaS) (+ Product-Driven Conversion)
  24. 24. CollabNet Cloud Journey 2004: CVSDude-CVS & Subversion Hosting (“Freemium”) 2008: Enterprise-grade SCM & Deployment Services (“Multiple Edition”) 2010: SaaS business expansion & automation (B2B SaaS – Velocity Sales) 2012: CloudForge- development Platform as a Service (dPaaS) (+ Product-Driven Conversion) Next: Hybrid Cloud Ecosystem (Hybrid Subscription + Utility)
  25. 25. CollabNet Cloud Journey 2004: CVSDude-CVS & Subversion Hosting (“Freemium”) 2008: Enterprise-grade SCM & Deployment Services (“Multiple Edition”) 2010: SaaS business 2000% Revenue expansion & automation (B2B SaaS – Velocity Sales) Increase 2012: CloudForge- development Platform as a Service (dPaaS) (+ Product-Driven Conversion) Next: Hybrid Cloud Ecosystem (Hybrid Subscription + Utility)
  26. 26. What Else Can We Tell You?
  27. 27. Sign Up for a Free Trial at http://codesion.com
  28. 28. Sign Up for a Free Trial at www.zuora.com
  29. 29. Thank You!
  30. 30. <end>

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