The subscription business model has transformed monetization strategies across almost every industry while the internet has made the business environment more competitive than ever. Modern subscription businesses must quickly adapt their tactics in order to maintain or gain a competitive advantage.
So what differentiates the most agile subscription businesses? One factor is how they are setup to change, segment, or lock-in pricing at will. Businesses that are equipped with agile pricing tools can deliver more targeted offers to accelerate quicker by maximizing recurring revenue.
Chargify has released a set of pricing tools that enable faster price experimentation, differentiation, and segmentation for quantity-based, metered-usage, and customized add-ons utilizing Chargify’s core billing engine. Some of the highlights include:
- The process to change price points or experiment with new price points takes minutes, not days or weeks compared to alternative solutions
- Price grandfathering provides the flexibility to change market prices without impacting existing subscribers
- Price differentiation allows businesses to offer multiple price points to different customers or customer segments
Historically, subscription businesses have either been restricted in their ability to modify/offer different price points or have done so in a manner that complicates their billing product catalog, ongoing development work, and product-level performance reporting.
With Chargify’s latest improvements, customers can now elegantly address a variety of use cases to help propel growth.
- Grandfathering prices for existing Customers: Businesses can now change the price of an add-on/component for new customers without affecting pre-existing customers subscribed to that offer. For example, a business selling quantity-based licenses at $29/user/month could run a price experiment at $39/user/month without affecting current customers. This functionality is similar to product versioning that has been available for product pricing.
- Differentiating pricing by Customer segment: Businesses can apply different price points for the same product/service, rather than having to create multiple add-ons for each price point they would like to offer. For example, a business selling metered-usage digital storage at $2/GB/month could offer $1.50/GB/month and $1/GB/month price points based on volume discounts or anticipated usage.
- Individualized pricing: Businesses can offer different prices to different customers, on a one-to-one pricing basis. When you set up a new subscription you can now give that subscription a custom price for a unique product/service. For example, a business selling an add-on product for $1499 per month could create unique price points such as $999/month based on that customer’s agreement.
In every one of these scenarios, the revenue for each product/service will be aggregated intelligently within Chargify’s reporting suite eliminating the need to consolidate product revenue streams.
For more information on how to configure component price points, visit our documentation.
The recently released pricing tools enhance Chargify’s existing billing engine that currently powers over 100,000 unique recurring billing scenarios. Using Chargify to enable complex subscriptions pricing strategies gives businesses the speed and flexibility to achieve their full growth potential.
Give our Sales or Support teams a call at 1.800.401.2414 to learn more.