innovative pricing & packaging strategies (accelerate east)
TRANSCRIPT
Zuora confidential, shared under non-disclosure and subject to disclaimer notice 1
Brian Bell CMO, Zuora
Marke1ng Panel – Innova&ve Pricing & Packaging Strategies
@brianbell123
Zuora confidential, shared under non-disclosure and subject to disclaimer notice 2
In The Subscrip1on Economy, Focus Is On Rela1onships
Product Relationships
BUY NOW SUBSCRIBE
Zuora confidential, shared under non-disclosure and subject to disclaimer notice 3
Three Strategic Growth Levers in Subscrip1on Based Businesses
Increase Value of Your Customers
Reduce Churn
Acquire New Customers
Zuora confidential, shared under non-disclosure and subject to disclaimer notice 4
Pricing and Packaging Supports Your Key Growth Strategies
$
PRICE ITERATE
Zuora confidential, shared under non-disclosure and subject to disclaimer notice 5 Zuora confidential, shared under non-disclosure and subject to disclaimer notice 5 Zuora confidential, shared under non-disclosure and subject to disclaimer notice 5
CMO
How Do I Get My Arms Around My Pricing Strategy?
How do I balance growth & revenue?
How to I think about choice vs. simplicity?
Do I price for new accounts or existing?
How do I price vis-à-vis competition?
How do I improve Time-To-Market &
operationalize?
Zuora confidential, shared under non-disclosure and subject to disclaimer notice 6
Pricing in the Product World
Cost
Price
TIME
$
PROFIT
Zuora confidential, shared under non-disclosure and subject to disclaimer notice 7
In The Subscrip1on World, Pricing is Based on Recurring Usage
Zuora confidential, shared under non-disclosure and subject to disclaimer notice 8
Consumers Have Unique Needs
Zuora confidential, shared under non-disclosure and subject to disclaimer notice 9
Pricing & Packaging becomes a Powerful New Strategic Weapon
It’s a Compe11ve, Dynamic Market
Zuora confidential, shared under non-disclosure and subject to disclaimer notice 10 Zuora confidential, shared under non-disclosure and subject to disclaimer notice 10
The Challenge: Where to focus & start?
Company Launch
International Growth
Revenue Enhancement
Product Expansion
Pricing Optimization
BUSINESS MATURITY
CO
MP
LE
XI
TY
Product Upgrade
Different Billing Frequencies
Simple Monthly Recurring
Product Bundles
Add-‐On Products
A/B TesHng
Usage & Overage
Pricing Tiers Regional Pricing
MulHple Currencies
Zuora confidential, shared under non-disclosure and subject to disclaimer notice 11
This is Not Where to Start
Zuora confidential, shared under non-disclosure and subject to disclaimer notice 12
Con1nued…
Zuora confidential, shared under non-disclosure and subject to disclaimer notice 13
And Con1nued Again…
Zuora confidential, shared under non-disclosure and subject to disclaimer notice 14
Start Simply & Iterate
1 2 3 Simple Recurring Model
More Advanced Op&ons
Basic Itera&ons
Zuora confidential, shared under non-disclosure and subject to disclaimer notice 15
Four Basic Subscrip1on Price “Metrics”
Product
Relationships
1. One-time
1. One-time setup 2. Fixed recurring 3. Per unit/user 4. Usage models
Zuora confidential, shared under non-disclosure and subject to disclaimer notice 16
Consider Fixed Recurring Model to Start
Focus on Core Value Prop for Target Customers
Zuora confidential, shared under non-disclosure and subject to disclaimer notice 17
1 2 3 Simple Recurring Model
More Advanced Op&ons
Basic Itera&ons
As You Iterate, Add More Basic Op1ons
Zuora confidential, shared under non-disclosure and subject to disclaimer notice 18
Use a Promo1onal Strategy to Acquire Customers
Offer full trials to drive adop&on
Offer Full Trials to Drive AdopHon
Zuora confidential, shared under non-disclosure and subject to disclaimer notice 19
Consider a Freemium Strategy
Give Away Base Product to Rapidly Acquire Customers
Zuora confidential, shared under non-disclosure and subject to disclaimer notice 20
Bundling Strategy
Offer Flexibility & Cross-‐Sell Offerings
Zuora confidential, shared under non-disclosure and subject to disclaimer notice 21
Longer-‐Term Op1ons to Lock In Customers
Reduce Churn & Increase Commitments (TCV)
Zuora confidential, shared under non-disclosure and subject to disclaimer notice 22
1 2 3 Simple Recurring Model
More Advanced Op&ons
Basic Itera&ons
More Advanced Op1ons
Zuora confidential, shared under non-disclosure and subject to disclaimer notice 23
Usage Based Pricing
Pay as You Go & Limit Risk For Customers
Zuora confidential, shared under non-disclosure and subject to disclaimer notice 24
Interna1onal Pricing Strategy US Pricing A Asia Pricing B
Address Different Market & Segment Requirements
Zuora confidential, shared under non-disclosure and subject to disclaimer notice 25
Test and Iterate Pricing
OpHmize Both PromoHonal and Core Pricing Strategies
ITERATE
Zuora confidential, shared under non-disclosure and subject to disclaimer notice 26
Be Mindful When Making Changes
Talk to Customers & Communicate Changes EffecHvely
Zuora confidential, shared under non-disclosure and subject to disclaimer notice 27
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 subscripHon businesses
4. Leverage a free promoHonal strategy
5. Test, test, test 6. Be mindful of communicaHng and deploying changes
to your customers
Zuora confidential, shared under non-disclosure and subject to disclaimer notice 28
Meet The Panelists
ScoutAnaly&cs Ma^ Shanahan,
SVP Strategy and Marketing
uKnow.com Steve Woda,
CEO
SailThru Dave Govan EVP Sales
TeleshuMle Richard Reisman
President
Zuora Brian Bell, CMO
@ScoutAnalytics @SteveWoda
@brianbell123
@rreisman
Zuora confidential, shared under non-disclosure and subject to disclaimer notice 29
END