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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