“Customers are looking for ways to get more real time delivery, more ongoing value, and being able to have memorable services.” — Joe Andrews, Marketing at Zuora, session moderator.
That’s just one of the many insights gained from attending the Innovative Subscription Pricing Strategies session with panelists from Simon Kucher, FiveStars, Neopost, and LinkedIn at Subscribed 2015.
Finding the right pricing strategy can be difficult when you’re faced with trying to get customers through your door and keeping them loyal to your company. Many companies struggle to provide a long-term strategy along with their short-term pricing strategy. Especially with subscription companies, it is sometimes hard to convert trial users to permanent users and keep your churn rate low. Similarly, having an optimal pricing strategy involves the entire company. “It’s a team game,” says Chris Luo, the VP of Marketing at FiveStars, “maybe marketing says something but finance has to agree, [and] sales has to be willing to sell it.”
So what exactly do you need to focus on when evaluating a pricing strategy? Drumroll. Customer value.
See what 4 panelists have to say about emphasizing customer value as a critical part of their pricing strategy:
“Give your customers a choice. You can have a fixed subscription at this price, and let them opt in or self select.” — Madhavan Ramanujam, Partner at Simon Kucher
“Our pricing model is pretty simple…We want to have something that’s simple and transparent to [our customers]. We have three packages, but it’s actually 90% of people pick the middle package and I think that’s very common pricing packaging strategy.” — Chris Luo, VP of Marketing at FiveStars
“We’ve taken a strategy where we’re trying to offer add on services to the hardware and get them to have some relationship that’s really sticky. We’re trying to drive a lot of our customers to our…digital platform where they can buy these subscriptions. We have a freemium model.” — Nick von der Wense, VP of Marketing, Communications, and Shipping Solutions at Neopost
“We’re focused on things like really understanding value delivery, actual delivery relative to the outcomes [our customers] want. Things like NPS and customer satisfaction.” — Josh Gold, Head of Global Pricing Strategy at LinkedIn
To learn more about perfecting your pricing strategies, check out the 4 Effective Subscription Pricing Strategies.