Creating an effective, straightforward and successful pricing strategy is key for your subscription business. At Billforward we know that every subscription offering is different and a one-size-fits-all approach to pricing won’t cut it, which is why we cater to a number of strategies including tiered, volume and usage-based pricing. No matter what pricing strategy your subscription business decides to implement, there are a number of truths that hold true: every customer wants to feel valued, get a good deal, and understand exactly what they're paying for.
So, what should your subscription business do to supercharge your pricing AND meet your customers needs?
1. Incentivise Customer Satisfaction from the Start
Every customer wants to feel like they’re getting a good deal when making a purchase. Some customers might look for lowered costs (such as through referral discounts, coupon codes when you sign up, or free trials), whilst others may gain greater satisfaction through customer assistance offered at the point of purchase. Offering customer support to new sign-ups so that they choose the right subscription plan that meets their needs will help to build customer satisfaction from the get-go, and enable your business to cultivate greater brand trust and loyalty in the long run.
2. Make your Pricing a Window, Not a Wall
According to the Baymard Institute, lack of cost visibility is one of the top reasons why customers abandon their shopping cart. High extra costs and lack of clarity can cause customers to resent the shopping experience, and often look to other options on the market. Visibility is key when it comes to creating a successful pricing strategy, especially if your subscription product is complicated due to available add-ons, user fees or other variable costs. No customer wants to be hit with hidden fees or left confused about the details of their subscription plan, which is why you should let customers know what their pricing options are, when extra fees may be applied, and what each plan includes. Pricing is often the deciding factor for customers, and so giving customers a window into exactly what your business can offer and the costs involved can build trust and create valuable customer relationships.
3. Test, Test, Test!
How the customer responds to your subscription pricing is vital for the success of your offering, making it risky to roll out a pricing strategy that hasn’t been tested. A great way to test your pricing strategy is to provide free trials to customers and inform them of the subscription price that will come into affect after their free trial ends. That way, you can gain valuable customer feedback not only on your pricing strategy, but also on your product. Getting a better picture of the customers willingness-to-pay through questionnaires and feedback both pre and post free-trial will help your business to understand how to construct a successful pricing strategy and meet customer expectations.
Can Billforward Meet my Pricing Strategy Needs?
Billforward operates with flexibility at the heart of everything we do, and this is especially true when it comes to pricing. Your subscription business can implement a range of pricing strategies with Billforward, including volume, tiered, flat-rate and usage-based pricing, as well as the ability to introduce other features such as a free-trial, coupon codes and upgrades or downgrades. Billforward also provides a 'Reports' feature, so that you can view and evaluate the success of your pricing strategy with customer data.
Why not book a discovery call with one of our billing experts and see how we can help you meet your subscription goals!