Effective and competitive pricing strategy is an important consideration for every subscription business. What are some principles of simplifying subscription pricing?

The Simpler the Better

I express this partly as a personal preference, and as a lesson learned from years of experimentation with A/B testing. When you present people with too many options, they feel overwhelmed and indecisive rather than confident and clear in the choice they are about to make.

The same is true for traditional product purchases.  In stores we wade through numerous versions of the same product that vary only by size, flavor, brand or packaging. How do you know, which version is right for you?



Subscription Pricing

In the recurring revenue world, this can also be a pitfall. There are a variety factors that can complicate subscription pricing for example,  setup fees, extra usage charges, inactivity fees, promotions and discounts, multi-currency pricing, industry regulations, or additional upsell features. Often, sales and marketing teams get  excited about creating amazing promotions and pricing deals, but its important  to keep in mind that too many options can overwhelm customer buying decisions. Chances are that simple pricing will decrease your churn rate because it eliminates any customer confusion.  

In a SaaS billing world, the goal is to maximize customer value - get customers, and keep them. Simplifying your subscription pricing helps with both.

Are you interested exploring how Fusebill can simplify your billing?

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