Whether you are a small or large business, your competition does not stand still. Your market is evolving and your pricing always needs to reflect current conditions. With the almost limitless pricing flexibility our system offers, you can design pricing which maximizes your revenue and is a strategic differentiator. Built-in flexibility and agility allow you to make pricing a strategic asset for your business.
A well designed pricing strategy carefully defines product tiers, included and optional product features, recurring timeframes, recurring and potential one-time fees, overages, product terms, conditions and promotions.
Subscriptions and Memberships
Traditional offline subscriptions and memberships are structured on a one-time annual renewal event. Today's more sophisticated online subscription and membership models are ongoing, open ended agreements, with shorter recurring time-frames, and highly automated two-way relationships.
Tiered subscription offers, also referred to as tiered plans, let you strategically create, promote and manage a menu of recurring price points for a single product, or package of products. Among the benefits of creating tiered offers are:
- The ability to attract, acquire and serve a wider range of customers.
- The ability to engage customers with low-level product commitments in order to cultivate a deeper commitment over time.
With tiered offers customers can select the product price and features tier that best suits their current needs. Low pricing tiers allow consumers to experience your product with little initial investment or commitment. Higher priced tiers can provide superior pricing, features, flexibility and/or support in exhange for deep product commitments or engagements For example, a freemium tier, or an initial tier with free access for a limited time or usage level, can be a highly effective way for getting a large number of users to experience the product.
Consumption Based Pricing
Track usage to implement pay-as-you-go pricing and licensing models. Let usage patterns inform your pricing strategy, drive improvements, and streamline your highly used functionality. Usage is divided into metered usage and allocated usage.
Metered usage measures dynamic consumption such as disk space used, compute time used, number of messages sent, etc. It can be defined as anything that you can measure. You can record usage for insight only or for implementing pay-as-you-go pricing models which charge based on actual consumption.
Allocated usage is used to track reservations and allocations. You can use it to track and rate based on number of locations, number of users, etc. You can track allocation usage to implement reservation based or licensing pricing models.