Innovative Pricing & Packaging Strategies (Accelerate East)

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Innovative Pricing & Packaging Strategies in the Subscription Economy

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Innovative Pricing & Packaging Strategies (Accelerate East)

  1. 1. Marke1ng  Panel  –       Innova&ve  Pricing  &     Packaging  Strategies     Brian  Bell   CMO,  Zuora   @brianbell123 1 Zuora confidential, shared under non-disclosure and subject to disclaimer notice
  2. 2. In  The  Subscrip1on  Economy,     Focus  Is  On  Rela1onships   BUY NOW Product 2 SUBSCRIBE Relationships Zuora confidential, shared under non-disclosure and subject to disclaimer notice
  3. 3. Three  Strategic  Growth  Levers  in   Subscrip1on  Based  Businesses   Acquire     New  Customers   3 Increase   Value  of  Your  Customers   Zuora confidential, shared under non-disclosure and subject to disclaimer notice Reduce     Churn  
  4. 4. Pricing  and  Packaging  Supports  Your  Key   Growth  Strategies   $ PRICE 4 ITERATE Zuora confidential, shared under non-disclosure and subject to disclaimer notice
  5. 5. How  Do  I  Get  My  Arms  Around     My  Pricing  Strategy?   How do I balance growth & revenue? How do I improve Time-To-Market & operationalize? How to I think about choice vs. simplicity? Do I price for new accounts or existing? How do I price vis-à-vis competition? CMO 5 5 Zuora confidential, shared under non-disclosure and subject to disclaimer notice Zuora confidential, shared under non-disclosure and subject to disclaimer notice
  6. 6. Pricing  in  the  Product  World   $   Price   PROFIT   Cost   TIME   6 Zuora confidential, shared under non-disclosure and subject to disclaimer notice
  7. 7. In  The  Subscrip1on  World,  Pricing  is   Based  on  Recurring  Usage   7 Zuora confidential, shared under non-disclosure and subject to disclaimer notice
  8. 8. Consumers  Have  Unique  Needs   8 Zuora confidential, shared under non-disclosure and subject to disclaimer notice
  9. 9. It’s  a  Compe11ve,  Dynamic  Market   Pricing  &  Packaging  becomes  a     Powerful  New  Strategic  Weapon   9 Zuora confidential, shared under non-disclosure and subject to disclaimer notice
  10. 10. The  Challenge:     Where  to  focus  &  start?     C O M P L E X I T Y   MulHple   Currencies   Pricing  Tiers   Add-­‐On  Products   Usage  &  Overage   Product  Upgrade   Product  Bundles   A/B  TesHng   Simple  Monthly   Different  Billing   Recurring   Frequencies   Company Launch Revenue Enhancement Product Expansion Pricing International Optimization Growth BUSINESS   MATURITY   10 Regional  Pricing   Zuora confidential, shared under non-disclosure and subject to disclaimer notice
  11. 11. This  is  Not  Where  to  Start   11 Zuora confidential, shared under non-disclosure and subject to disclaimer notice
  12. 12. Con1nued…   12 Zuora confidential, shared under non-disclosure and subject to disclaimer notice
  13. 13. And  Con1nued  Again…   13 Zuora confidential, shared under non-disclosure and subject to disclaimer notice
  14. 14. Start  Simply  &  Iterate   1   Simple  Recurring   Model   14 2   Basic         Itera&ons   3   Zuora confidential, shared under non-disclosure and subject to disclaimer notice More  Advanced   Op&ons  
  15. 15. Four  Basic  Subscrip1on  Price  “Metrics”     1.  One-time Product Relationships 15 1.  2.  3.  4.  One-time setup Fixed recurring Per unit/user Usage models Zuora confidential, shared under non-disclosure and subject to disclaimer notice
  16. 16. Consider  Fixed  Recurring  Model  to  Start   Focus  on  Core  Value  Prop  for  Target  Customers   16 Zuora confidential, shared under non-disclosure and subject to disclaimer notice
  17. 17. As  You  Iterate,  Add  More  Basic  Op1ons   1   Simple  Recurring   Model   17 2   Basic         Itera&ons   3   Zuora confidential, shared under non-disclosure and subject to disclaimer notice More  Advanced   Op&ons  
  18. 18. Use  a  Promo1onal  Strategy  to  Acquire  Customers   Offer  full  trials  to  drive  adop&on   Offer  Full  Trials  to  Drive  AdopHon   18 Zuora confidential, shared under non-disclosure and subject to disclaimer notice
  19. 19. Consider  a  Freemium  Strategy   Give  Away  Base  Product  to  Rapidly  Acquire  Customers   19 Zuora confidential, shared under non-disclosure and subject to disclaimer notice
  20. 20. Bundling  Strategy   Offer  Flexibility  &  Cross-­‐Sell  Offerings   20 Zuora confidential, shared under non-disclosure and subject to disclaimer notice
  21. 21. Longer-­‐Term  Op1ons  to  Lock  In  Customers   Reduce  Churn  &  Increase  Commitments  (TCV)   21 Zuora confidential, shared under non-disclosure and subject to disclaimer notice
  22. 22. More  Advanced  Op1ons   1   Simple  Recurring   Model   22 2   Basic         Itera&ons   3   Zuora confidential, shared under non-disclosure and subject to disclaimer notice More  Advanced   Op&ons  
  23. 23. Usage  Based  Pricing   Pay  as  You  Go  &  Limit  Risk  For  Customers     23 Zuora confidential, shared under non-disclosure and subject to disclaimer notice
  24. 24. Interna1onal  Pricing  Strategy   A   US  Pricing   B   Asia  Pricing   Address  Different  Market  &  Segment  Requirements   24 Zuora confidential, shared under non-disclosure and subject to disclaimer notice
  25. 25. Test  and  Iterate  Pricing   ITERATE OpHmize  Both  PromoHonal  and  Core  Pricing  Strategies   25 Zuora confidential, shared under non-disclosure and subject to disclaimer notice
  26. 26. Be  Mindful  When  Making  Changes   Talk  to  Customers  &  Communicate  Changes  EffecHvely   26 Zuora confidential, shared under non-disclosure and subject to disclaimer notice
  27. 27. 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  subscripHon  businesses   4.  Leverage  a  free  promoHonal  strategy   5.  Test,  test,  test   6.  Be  mindful  of  communicaHng  and  deploying  changes   to  your  customers   27 Zuora confidential, shared under non-disclosure and subject to disclaimer notice
  28. 28. Meet  The  Panelists   ScoutAnaly&cs   Ma^  Shanahan,     SVP Strategy and Marketing   @ScoutAnalytics uKnow.com   TeleshuMle   Steve  Woda,      CEO   Richard  Reisman     President   @SteveWoda @rreisman Zuora   Brian Bell, CMO   @brianbell123 28 Zuora confidential, shared under non-disclosure and subject to disclaimer notice SailThru   Dave  Govan     EVP  Sales  
  29. 29. END 29 Zuora confidential, shared under non-disclosure and subject to disclaimer notice

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