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.

Business News & Politik

Innovative Pricing & Packaging Strategies
Marketing Panel
Brian Bell
CMO
Joe Andrews
Sr. Director, Product
Marketing
@brianbell123 @andrewsjoe

In
The
Subscrip/on
Economy,

Focus
Is
On
Rela/onships

Product Relationships
BUY NOW SUBSCRIBE

Three
Strategic
Growth
Levers
in

Subscrip/on
Based
Businesses
Increase

Value
of
Your
Customers

Reduce

Churn

Acquire

New
Customers

Pricing
&
Packaging
Supports

Your
Key
Growth
Strategies
$
PRICE
ITERATE

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?

Pricing
in
a
product
world?
Cost

Price

TIME

$

PROFIT

In
the
Subscrip/on
World,

Pricing
is
Based
on
Recurring
Usage

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

Start
Simple,
Iterate
1
2
3

Simple

Recurring

Model

More

Advanced

Op/ons

Basic

Itera/ons

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

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

Edi/on
Strategy
To
Address
Segments
Serve
Diﬀerent
Customers
With
Right
Features
and
Price
Points

As
You
Iterate,

Add
More
Basic
Op/ons

1
2
3

Simple

Recurring

Model

More

Advanced

Op/ons

Basic

Itera/ons

Use
a
Promo/onal
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
Op/ons
to

Lock
in
Customers
Reduce
Churn
&
Increase
Commitments
(TCV)

More
Advanced
Op/ons
1
2
3

Simple

Recurring

Model

More

Advanced

Op/ons

Basic

Itera/ons

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

Interna/onal
Pricing
Address
Diﬀerent
Market
&
Segment
Requirements

US
Pricing
A
Asia
Pricing
B

Tes/ng
&
Itera/ng
Op/mize
Both
Promo/onal
&
Core
Pricing
Strategies

ITERATE

Be
Mindful
When
Making
Changes

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 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

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

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The Marketing Perspective Panel: Innovative Pricing & Packaging Strategies

1. Innovative Pricing & Packaging Strategies Marketing Panel Brian Bell CMO Joe Andrews Sr. Director, Product Marketing @brianbell123 @andrewsjoe

2. In The Subscrip/on Economy, Focus Is On Rela/onships Product Relationships BUY NOW SUBSCRIBE

3. Three Strategic Growth Levers in Subscrip/on Based Businesses Increase Value of Your Customers Reduce Churn Acquire New Customers

4. Pricing & Packaging Supports Your Key Growth Strategies $ PRICE ITERATE

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. Pricing in a product world? Cost Price TIME $ PROFIT

7. In the Subscrip/on World, Pricing is Based on Recurring Usage

8. Consumers Have Unique Needs

9. It’s a Compe//ve, Dynamic Market

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. This is Not Where to Start

12. Con/nued…

13. Con/nued…

14. And con/nued again…

15. Start Simple, Iterate 1 2 3 Simple Recurring Model More Advanced Op/ons Basic Itera/ons

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

18. Edi/on Strategy To Address Segments Serve Diﬀerent Customers With Right Features and Price Points

19. As You Iterate, Add More Basic Op/ons 1 2 3 Simple Recurring Model More Advanced Op/ons Basic Itera/ons

20. Use a Promo/onal Strategy Oﬀer Full Trials to Drive Adop/on

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

22. Bundling Strategy Oﬀer Flexibility & Cross-‐Sell Oﬀerings

23. Longer-‐Term Op/ons to Lock in Customers Reduce Churn & Increase Commitments (TCV)

24. More Advanced Op/ons 1 2 3 Simple Recurring Model More Advanced Op/ons Basic Itera/ons

25. Usage Based Pricing Pay as You Go & Limit Risk for Customers

26. Interna/onal Pricing Address Diﬀerent Market & Segment Requirements US Pricing A Asia Pricing B

27. Tes/ng & Itera/ng Op/mize Both Promo/onal & Core Pricing Strategies ITERATE

28. Be Mindful When Making Changes Talk to Customers & Communicate Changes Eﬀec/vely

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. 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. End.

The Marketing Perspective Panel: Innovative Pricing & Packaging Strategies

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