Getting your pricing right when it comes to digital subscriptions is the topic of a new report launched by subscriptions experience platform Zephr, in partnership with FIPP.
From keeping an eye on your metrics to the best way to offer bundles, “The 5 Dos and Don’ts of Digital Subscription Pricing” covers the most established methods for developing pricing.
Pricing: obvious, but overlooked
Profit from subscriptions is closely linked to pricing strategy, with a one per cent improvement in pricing leading to an estimated 11 per cent increase in profit, according to a well-known Harvard Business Review study.
Yet, “very little time, effort and money is invested in pricing strategies, at least when compared to the investments made towards lowering costs and maximising output,” reads the report.
What’s more, “prices are even more important to get right for subscriptions compared to one-off purchases, because the customer will be locked in at this price point until the next billing period, which may be up to 12 months later.”
Strategies for success
Having a flexible, creative pricing strategy is also very important. While no subscription strategy or price point will be perfect for every customer, to a certain extent it is still possible to offer tailored packages. This can mean allowing customers to add, remove or replace features they find more or less desirable.
Finally, the way your pricing is communicated should be comprehensive – and comprehensible. Hidden costs and difficulty navigating are off-putting to consumers, while transparency is appreciated and, increasingly, expected.
Get many more tips and tricks in “The 5 Dos and Don’ts of Digital Subscription Pricing” by downloading your free copy now.