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Marketing Panel
Innovative Pricing & Packaging Strategies
Brian Bell
CMO
Joe Andrews
Sr. Director, Product Marketing
@andr...
In The Subscription Economy,
Focus Is On Relationships
Product Relationships
BUY NOW SUBSCRIBE
Three Strategic Growth Levers in
Subscription Based Businesses
Increase	
  
Value	
  of	
  Your	
  Customers	
  
Reduce	
 ...
$
PRICE	
   ITERATE	
  
Pricing and Packaging Supports Your
Key Growth Strategies
How Do I Get My Arms Around
My Pricing Strategy?
CMO
How do I balance
growth & revenue?
How	
  to	
  I	
  think	
  about	
...
Pricing in Product World
Cost	
  
Price	
  
TIME	
  
$	
  
PROFIT	
  
In the Subscription World, Pricing is
Based on Recurring Usage
Four Basic Subscription Price “Metrics”
1.  One-­‐:me	
  
1.  One-­‐:me	
  (setup)	
  	
  
2.  Fixed	
  recurring	
  
3.  ...
Consumers Have Unique Needs
It’s a Competitive, Dynamic Market
The Challenge:
Where to Focus and Start?
Company
Launch
International
Growth
Revenue
Enhancement
Product
Expansion
Pricing...
This is Not Where to Start
Continued…
Continued…
And Continued Again…
Start Simply, Then Iterate
1	
   2	
   3	
  
Simple	
  
Recurring	
  	
  
Model	
  
More	
  
Advanced	
  
Op:ons	
  
Basic...
Consider Fixed Recurring Model to Start
Focus	
  on	
  Core	
  Value	
  Prop	
  for	
  Target	
  Customers	
  
As You Iterate, Add More Basic Options
1	
   2	
   3	
  
Simple	
  
Recurring	
  	
  
Model	
  
More	
  
Advanced	
  
Op:o...
Use a Promotional Strategy
Offer	
  Full	
  Trials	
  to	
  Drive	
  Adop:on	
  
Consider a Freemium Strategy
Give	
  Away	
  Base	
  Product	
  to	
  Rapidly	
  Acquire	
  Customers	
  
Bundling Strategy
Offer	
  Flexibility	
  &	
  Cross-­‐Sell	
  Offerings	
  
Longer-Term Options to
Lock in Customers
Reduce	
  Churn	
  &	
  Increase	
  Commitments	
  (TCV)	
  
More Advanced Options
1	
   2	
   3	
  
Simple	
  
Recurring	
  	
  
Model	
  
More	
  
Advanced	
  
Op:ons	
  
Basic	
  
...
Usage Based Pricing
Pay	
  as	
  You	
  Go	
  &	
  Limit	
  Risk	
  For	
  Customers	
  	
  
International Pricing
US	
  Pricing	
  A Asia	
  Pricing	
  B
Address	
  Different	
  Market	
  &	
  Segment	
  Requirement...
Testing & Iterating
Op:mize	
  Both	
  Promo:onal	
  and	
  Core	
  Pricing	
  Strategies	
  
ITERATE	
  
Be Mindful When Making Changes
27	
  
Talk	
  to	
  Customers	
  &	
  Communicate	
  Changes	
  Effec:vely	
  
Lessons From Our Customers
1.  Pricing and packaging is a new strategic weapon
2.  Start simply…then iterate with more bas...
Meet the Panelists
Demandbase
Greg Ott, CMO
Fuzebox
Eran Shtiegman
VP Product
Insideview
Brian Kelly
CMO
Zuora
Brian Bell,...
END
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The CMO's Guide to the Subscription Economy: Innovative Pricing and Packaging Strategies (Subscribed13)

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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. Learn about how to leverage new subscription commerce capabilities across multiple channels.

Publié dans : Business, Économie & finance
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The CMO's Guide to the Subscription Economy: Innovative Pricing and Packaging Strategies (Subscribed13)

  1. 1. Marketing Panel Innovative Pricing & Packaging Strategies Brian Bell CMO Joe Andrews Sr. Director, Product Marketing @andrewsjoe@brianbell123
  2. 2. In The Subscription Economy, Focus Is On Relationships Product Relationships BUY NOW SUBSCRIBE
  3. 3. Three Strategic Growth Levers in Subscription Based Businesses Increase   Value  of  Your  Customers   Reduce     Churn   Acquire     New  Customers  
  4. 4. $ PRICE   ITERATE   Pricing and Packaging Supports Your Key Growth Strategies
  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 Product World Cost   Price   TIME   $   PROFIT  
  7. 7. In the Subscription World, Pricing is Based on Recurring Usage
  8. 8. Four Basic Subscription Price “Metrics” 1.  One-­‐:me   1.  One-­‐:me  (setup)     2.  Fixed  recurring   3.  Per  unit/user   4.  Usage  models     Relationships Product
  9. 9. Consumers Have Unique Needs
  10. 10. It’s a Competitive, Dynamic Market
  11. 11. The Challenge: Where to Focus and 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  
  12. 12. This is Not Where to Start
  13. 13. Continued…
  14. 14. Continued…
  15. 15. And Continued Again…
  16. 16. Start Simply, Then Iterate 1   2   3   Simple   Recurring     Model   More   Advanced   Op:ons   Basic   Itera:ons  
  17. 17. Consider Fixed Recurring Model to Start Focus  on  Core  Value  Prop  for  Target  Customers  
  18. 18. As You Iterate, Add More Basic Options 1   2   3   Simple   Recurring     Model   More   Advanced   Op:ons   Basic   Itera:ons  
  19. 19. Use a Promotional Strategy Offer  Full  Trials  to  Drive  Adop:on  
  20. 20. Consider a Freemium Strategy Give  Away  Base  Product  to  Rapidly  Acquire  Customers  
  21. 21. Bundling Strategy Offer  Flexibility  &  Cross-­‐Sell  Offerings  
  22. 22. Longer-Term Options to Lock in Customers Reduce  Churn  &  Increase  Commitments  (TCV)  
  23. 23. More Advanced Options 1   2   3   Simple   Recurring     Model   More   Advanced   Op:ons   Basic   Itera:ons  
  24. 24. Usage Based Pricing Pay  as  You  Go  &  Limit  Risk  For  Customers    
  25. 25. International Pricing US  Pricing  A Asia  Pricing  B Address  Different  Market  &  Segment  Requirements  
  26. 26. Testing & Iterating Op:mize  Both  Promo:onal  and  Core  Pricing  Strategies   ITERATE  
  27. 27. Be Mindful When Making Changes 27   Talk  to  Customers  &  Communicate  Changes  Effec:vely  
  28. 28. 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
  29. 29. Meet the Panelists Demandbase Greg Ott, CMO Fuzebox Eran Shtiegman VP Product Insideview Brian Kelly CMO Zuora Brian Bell, CMO @brianbell123 MuleSoZ   Chris  Purpura   VP  &  GM   @chrispurpura   Marketo   Bill  Binch   SVP  Sales   @bkkelly  
  30. 30. END

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