Mar 30, 2020
Why you should check out today’s podcast:
- Find out the basic differences between SaaS, subscription and traditional perpetual licenses
- Learn about subscription pricing decision and how to set-up the revenue buckets for acquisition, retention, and monetization
- Discover why it is important that your pricing and packaging be aligned to the buyer journey
Amy Konary has more than 20 years of experience advising companies on subscription business strategies.
She is the founder and chair of The Subscribed Institute presented by Zuora, a think tank for the subscription economy. Through The Subscribed Institute Amy brings together a community of business executives, thought leaders, and industry experts at a series of Executive Summits and events, and generates research and industry benchmarks on subscription transformation topics. Amy also advises Zuora customers on subscription business strategy development, execution, and maturity.
In this episode, Amy talked about the strategies and different pricing models used to craft the revenue buckets for acquisition, retention and monetization of your subscription business.
"When you're selling a subscription, you have to take people on a journey."
- Amy Konary
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Topics Covered:
02:14 - How she got started in Pricing
04:35 - Pricing and packaging in traditional businesses as compared with subscriptions
08:11 - What to focus on in subscriptions and the challenges that go with subscriptions
12:54 - Her thoughts on this particular difference between a traditional business and subscriptions
15:04 - Why consumption pricing isn't the most viable option in subscription pricing
15:54 - What is Subscribed Institute and what does it do
19:07 - Her best Pricing advice that would greatly impact your business
Key Takeaways:
"You're selling relationships when you're selling subscriptions." - Amy Konary
"All of the sorts of principles about how people make decisions and the balance of simplicity with flexibility and the paradox of choice, all these sorts of behavioral economic concepts seemed very, very strong when it comes to subscription pricing." - Amy Konary
"In subscription, rather than selling all the value upfront, you have to make sure they can see value really quickly and you'll also have to give them a path forward." - Amy Konary
"For a new business, you absolutely have to focus on new subscriber acquisition and that might dictate or it does dictate how you price and package." - Amy Konary
"In subscription, you can't monetize unless you have that relationship, have that subscriber." - Amy Konary
Resources:
Connect With Amy Konary:
- E: akonary@zuora.com
Connect with Mark Stiving:
- Email: mark@impactpricing.com