Are you wondering how to price and package your services to drive up revenue and customer acquisition? Here is a teaser: It could be tiered pricing, charging for usage, upgrade plans, or segmented pricing, but finding the right pricing combination makes the difference.

1. Why Zuora
Zuora Provides a BluePrint to Succeed in the Subscription
Economy!
The Marketing Perspective:
Innovative Pricing &
Packaging Strategies

2. 2
Joe Andrews
Sr. Director, Product Marketing
Zuora
Mike Puglia
Vice President, Marketing
Timetrade
Our Speakers
@andrewsjoe @timetrade

3. We call this shift the Subscription Economy™
Our world is shifting
ShippingProducts Monetizing Relationships
BUY NOW SUBSCRIBE
The Subscription Economy takes the changes brought by the SaaS
model and applies them to companies in every industry.

4. Three Strategic Growth Levers in
Subscription Based Businesses
Increase
Customer Value
Reduce
Churn
Acquire
New Customers

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CMO
How Do I Get My Arms Around
My Pricing Strategy?
How do I improve
Time-To-Market &
operationalize?How do I improve
Time-To-Market &
operationalize?
How do I balance
growth & revenue?
How do I price
vis-à-vis competition?
How to I think about
choice vs. simplicity?
Do I price for new
accounts or existing?

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Pricing in Product World
Cost
Price
TIME
$
PROFIT

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In the Subscription World, Pricing is
Based on Recurring Usage

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Four Basic Subscription Pricing “Metrics”
Product
1. One-time
1. One-time (setup)
2. Fixed recurring
3. Per unit/user
4. Usage models

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Consumers Have Unique Needs

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It’s a Competitive, Dynamic Market
Pricing and Packaging is Now a Powerful and Strategic Weapon

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The Challenge:
Where to focus & start?
Company
Launch
International
Growth
Revenue
Enhancement
Product
Expansion
Pricing
Optimization
BUSINESS MATURITY
COMPLEXITY
Product Upgrade
Different Billing
FrequenciesSingle Product
Simple Monthly
Recurring
Product Bundles
Add-On Products
A/B Testing
Usage & Overage
Pricing Tiers Regional Pricing
Multiple
Currencies

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This is Not Where to Start

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Continued…

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And Continued Again…

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Start Simply & Iterate
1 2 3Simple
Recurring
Model
More
Advanced
Options
Basic
Iterations

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Consider Fixed Recurring Model to Start
Focus on Core Value Prop for Target Customers

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As You Iterate, Add More Basic Options
17
1 2 3Simple
Recurring
Model
More
Advanced
Options
Basic
Iterations

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Use a Promotional Strategy to Acquire Customers
Offer full trials to drive adoption
Offer Full Trials to Drive Adoption

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Consider a Freemium Strategy
Give Away Base Product to Rapidly Acquire Customers

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Freemium Considerations
• Put your best foot forward
• Take away, don’t offer “more” (less unhappy
customers/refunds)
• Embrace “free”
• How do you end a trial?

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One-Time Promotions Change Purchase Behavior
Offer full trials to drive adoption

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Bundling Strategy
Offer Flexibility & Cross-Sell Offerings

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Bundling Strategy – By Market/Vertical

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Longer-Term Options to Lock In Customers
Reduce Churn & Increase Commitments (TCV)

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More Advanced Options
25
1 2 3Simple
Recurring
Model
More
Advanced
Options
Basic
Iterations

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Usage Based Pricing
Pay as You Go & Limit Risk For Customers

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Usage Based Pricing With Overage
Balanced Risk For Customers & You

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Regional Pricing Strategy
US PricingA Asia PricingB
Address Different Market & Segment Requirements

29. Test Pricing/Packaging Changes
29

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Be Mindful When Making Changes
Talk to Customers & Communicate Changes Effectively

31. 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
Summary of Lessons From Our Customers

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www.subscribed.com code: “webprice”
50% off registration
price through Aug 31

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Joe Andrews
Sr. Director, Product Marketing
Zuora
Mike Puglia
Vice President, Marketing
Timetrade
Questions?
@andrewsjoe @timetrade

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