How to Win with Subscription Pricing Models

By Joe Andrews October 30, 2014

Last week we launched The Academy, a new educational site dedicated to helping companies build and run amazing subscription-based businesses.

One of the content areas that always generates a lot of interest is subscription pricing and packaging. We do many live events and webinars every year and it continues to be a topic subscription business leaders want to talk about. This is because pricing for subscription businesses is very different and more complex than for one-time product transactions.

Since subscription businesses are based on monetizing customer relationships over time, there’s more complexity in terms of pricing options. But where do you focus and start? And how do you optimize your pricing over time – testing and iterating to effectively drive your growth levers?

When should you ideally start to plan? A recent poll we conducted shows that only 20% of you start to think about pricing well before starting to develop the product.

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To this end, we’ve published several guides to help you develop a winning subscription pricing strategy. For a primer on how to evolve your pricing and packaging for recurring revenue businesses, read Innovative Subscription Pricing Strategies.

In the world of pricing, two of the biggest challenges for marketers today are 1. determining the right price level and 2. determining the right price metric. To help answer these questions, read Defining a Winning Subscription Pricing Model, with guidance from Zuora partner Simon-Kucher and Partners, a leading marketing and pricing consulting firm.

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Let us know what you think of these guides and stay tuned for future articles and webinars on pricing on the Academy.