Mar 4, 2019
Why you have to check out today’s podcast:
- Understand what subscription-based pricing is all about
- Discover how having a systematic pricing metric and model help justify the value
- How usage is connected to value and how to monetize those date to have a new source of value in subscription payments
Jim Geisman is founder and president of Software Pricing Partners. His firm is primarily focused on pricing strategies, processes, and tactics. Engagements also focus on the financial impact on the client company and the impact on the sales, marketing and development functions.
In this episode, Jim tackles what subscription pricing is all about, the structured process of product and service packaging to fully address customer segments and needs, and the correlation of usage to value when it comes to subscription pricing.
“You have to be extremely careful not in what you charge but how you present the options to the customer.”
- Jim Geisman
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Topics Covered:
01:57 – Jim's backstory, getting an MBA in Harvard
03:09 – How Jim started in his pricing journey
05:45 – The pricing metric to be considered in a subscription model
09:45 – Jim dig deeper into Salesforce’s subscription pricing model
15:25 – Correlation of usage to value, why subscription services are considered key to monetize customer relationships
17:45 – How usage is a metric in vertical markets
20:20 –Jim’s advice on how to create a pricing impact
Key Takeaways:
“The metric that makes the most sense is the customer.”- Jim Geisman
“Think about the way they make in purchasing decisions and incorporate some of their own personal buyer skepticism and objections.” - Jim Geisman
Resources:
Connect with Jim Geisman:
- Email: jgeisman@gmail.com
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