How to set the right price for your subscription package?
The pricing of your subscription packages will always be a puzzle, especially as you have to forget the old ways of pricing. It is important not to overcomplicate your offer while taking care to design your services around what customers are willing to spend.
When new initiatives arise from technical product advances, talk to your customers and ask them what they are prepared to pay for the new value you are adding. All too often, companies remain in a kind of trial phase in which they give away new services or initiatives almost for free. They justify this by saying they are giving the customer more value. However, when you start with this approach it is hard to roll-out real price plans and to convert your customers because they come to ‘expect’ this service to be included.
So, you need to perform A/B testing to find out what your customers are willing to pay. And you need to be focused on your ultimate objective of ensuring that a decent part of your revenue becomes recurring.
Constantly demonstrating to your customers that you offer value for money is crucial because you will always be faced with the prospect of churn. As such, the key question is always: From which areas of activity or responsibility can I unburden my customers and are they willing to pay for that?
Would you like to know more and discover the potential within your business?
Feel free to contact Timo Zuidgeest
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