During this webinar, find out how pricing innovation can fuel revenue growth. You'll learn:
-How to measure revenue yield
-Ways to benchmark performance of your pricing plans
-Techniques for packaging pricing plans based on customer behavior
-How to use data to package and price your licenses
By the end of this session, you will be able to evaluate your own pricing strategy to identify how to analyze pricing plan performance, identify opportunities to improve yield, and increase revenue from your existing customer base.
To hear the audio associated with this webinar, please visit our website: http://info.vindicia.com/Archived-Webinars-Pricing-Innovation.html
7. 7
So How Innovative Can a Provider Be?
● Call Time
● Text Messages
● Cellular Data
8. 8
Which Rate Plan has the Most Opportunity?
Rate Plan MRR Lifetime
Value
Rate Plan
Price
Yield
Rating
Monthly
Volume
Individual $2.1M $1,558 $79 $0.67 117
Family $5.6M $17,921 $262 $1.02 257
Unlimited $4.2M $30,291 $534 $0.21 2,542
10. 10
Measuring Yield Provides New Optics
Rate Plan MRR Lifetime
Value
Rate Plan
Price
Yield
Rating
Monthly
Volume
Individual $2.1M $1,558 $79 $0.67 117
Family $5.6M $17,921 $262 $1.02 257
Unlimited $4.2M $30,291 $534 $0.21 2,542
11. 11
Yield Management is the process of
understanding and designing rate plans in
order to maximize revenue or profits from a
customer behavior.
Pricing Innovation as a Process
12. 12
Monitor Over
Time
STEP 5
Define License
Structure to
Match Customer
Behavior
STEP 4
Identify Pricing
Issues
STEP 3
Define
Usage Unit Price
Curves
STEP 2
Yield Management Methodology
Define Usage
Units of Measure
STEP 1
VALUE
Power
Standard
Light
VALUE
13. 13
Usage Units of Measure Definition
● Types of Units
– Content – search results, download pdf, read article, etc.
– Transaction – make payment, update customer info, etc.
– Workflow – approve expense report, request sales review, etc.
● Relative Weights
● Mapping to Licenses
16. 16
Identifying Pricing Issues
Rate Plan MRR Lifetime
Value
Rate Plan
Price
Yield
Rating
Monthly
Volume
Individual $2.1M $1,558 $79 $0.67 117
Family $5.6M $17,921 $262 $1.02 257
Unlimited $4.2M $30,291 $534 $0.21 2,542
Other Pivots
for Yield
● Demographic
● Firmographic
● Technographic
● Territory
● Channel
● Features
17. 17
Options for Matching Customer Behavior
● Tiering
● Bundling
● Channels
● Availability
100+
Customers
$1.6B
Under Analysis
Increases the
Customer Lifetime
Value
10-15%
18. 18
Monitor Over
Time
STEP 5
Define License
Structure to
Match Customer
Behavior
STEP 4
Identify Pricing
Issues
STEP 3
Define
Usage Unit Price
Curves
STEP 2
Yield Management Methodology
Define Usage
Units of Measure
STEP 1
VALUE
Power
Standard
Light
VALUE