innovative pricing & packaging strategies (accelerate east)

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Zuora confidential, shared under non-disclosure and subject to disclaimer notice 1 Brian Bell CMO, Zuora Marke1ng Panel – Innova&ve Pricing & Packaging Strategies @brianbell123

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Page 1: Innovative Pricing & Packaging Strategies (Accelerate East)

Zuora confidential, shared under non-disclosure and subject to disclaimer notice 1

Brian  Bell  CMO,  Zuora  

Marke1ng  Panel  –      Innova&ve  Pricing  &    Packaging  Strategies    

@brianbell123

Page 2: Innovative Pricing & Packaging Strategies (Accelerate East)

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

Page 3: Innovative Pricing & Packaging Strategies (Accelerate East)

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  

Page 4: Innovative Pricing & Packaging Strategies (Accelerate East)

Zuora confidential, shared under non-disclosure and subject to disclaimer notice 4

Pricing  and  Packaging  Supports  Your  Key  Growth  Strategies  

$

PRICE ITERATE

Page 5: Innovative Pricing & Packaging Strategies (Accelerate East)

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?

Page 6: Innovative Pricing & Packaging Strategies (Accelerate East)

Zuora confidential, shared under non-disclosure and subject to disclaimer notice 6

Pricing  in  the  Product  World  

Cost  

Price  

TIME  

$  

PROFIT  

Page 7: Innovative Pricing & Packaging Strategies (Accelerate East)

Zuora confidential, shared under non-disclosure and subject to disclaimer notice 7

In  The  Subscrip1on  World,  Pricing  is  Based  on  Recurring  Usage  

Page 8: Innovative Pricing & Packaging Strategies (Accelerate East)

Zuora confidential, shared under non-disclosure and subject to disclaimer notice 8

Consumers  Have  Unique  Needs  

Page 9: Innovative Pricing & Packaging Strategies (Accelerate East)

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  

Page 10: Innovative Pricing & Packaging Strategies (Accelerate East)

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  

Page 11: Innovative Pricing & Packaging Strategies (Accelerate East)

Zuora confidential, shared under non-disclosure and subject to disclaimer notice 11

This  is  Not  Where  to  Start  

Page 12: Innovative Pricing & Packaging Strategies (Accelerate East)

Zuora confidential, shared under non-disclosure and subject to disclaimer notice 12

Con1nued…  

Page 13: Innovative Pricing & Packaging Strategies (Accelerate East)

Zuora confidential, shared under non-disclosure and subject to disclaimer notice 13

And  Con1nued  Again…  

Page 14: Innovative Pricing & Packaging Strategies (Accelerate East)

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  

Page 15: Innovative Pricing & Packaging Strategies (Accelerate East)

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

Page 16: Innovative Pricing & Packaging Strategies (Accelerate East)

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  

Page 17: Innovative Pricing & Packaging Strategies (Accelerate East)

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  

Page 18: Innovative Pricing & Packaging Strategies (Accelerate East)

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  

Page 19: Innovative Pricing & Packaging Strategies (Accelerate East)

Zuora confidential, shared under non-disclosure and subject to disclaimer notice 19

Consider  a  Freemium  Strategy  

Give  Away  Base  Product  to  Rapidly  Acquire  Customers  

Page 20: Innovative Pricing & Packaging Strategies (Accelerate East)

Zuora confidential, shared under non-disclosure and subject to disclaimer notice 20

Bundling  Strategy  

Offer  Flexibility  &  Cross-­‐Sell  Offerings  

Page 21: Innovative Pricing & Packaging Strategies (Accelerate East)

Zuora confidential, shared under non-disclosure and subject to disclaimer notice 21

Longer-­‐Term  Op1ons  to  Lock  In  Customers  

Reduce  Churn  &  Increase  Commitments  (TCV)  

Page 22: Innovative Pricing & Packaging Strategies (Accelerate East)

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  

Page 23: Innovative Pricing & Packaging Strategies (Accelerate East)

Zuora confidential, shared under non-disclosure and subject to disclaimer notice 23

Usage  Based  Pricing  

Pay  as  You  Go  &  Limit  Risk  For  Customers    

Page 24: Innovative Pricing & Packaging Strategies (Accelerate East)

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  

Page 25: Innovative Pricing & Packaging Strategies (Accelerate East)

Zuora confidential, shared under non-disclosure and subject to disclaimer notice 25

Test  and  Iterate  Pricing  

OpHmize  Both  PromoHonal  and  Core  Pricing  Strategies  

ITERATE

Page 26: Innovative Pricing & Packaging Strategies (Accelerate East)

Zuora confidential, shared under non-disclosure and subject to disclaimer notice 26

Be  Mindful  When  Making  Changes  

Talk  to  Customers  &  Communicate  Changes  EffecHvely  

Page 27: Innovative Pricing & Packaging Strategies (Accelerate East)

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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  

Page 28: Innovative Pricing & Packaging Strategies (Accelerate East)

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

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END