This is the third in a series of posts on price plan components.
So far in this series we’ve talked about price plan components in general, and core plan components, in this post we’ll look at recurring add-on price plan components.
Add-ons are recurring components your customers can purchase IN ADDITION to a core plan. Popular examples of Add-ons are premium support packages or additional features. Figure 1 is an example from a phone company that offers voicemail as an Add-on component for an additional $7 per month.
Figure 1. Voicemail Recurring Add-On Example
Value is extremely important to Subscription customers, if they are going to be paying for something every month they need to be able to recognize the value immediately. Hand in hand with value is choice. Subscription customers don’t want to pay for services they don’t need or want. Offering Add-ons gives your customers the ability to customize your service to their needs.
Many subscription companies take this idea of customization to a level beyond just offering a particular feature as an Add-on. In Figure 2, not only does the customer have the option of adding a messaging feature to their core plan, he or she can also choose how much of that feature they want, thereby only paying for the amount of the feature they need.
Figure 2. Add-on Components with Volume
Customers can pick and choose the Add-ons they want (there’s usually no limit) and the cost of each is added to the cost of their core plan and charged on a recurring basis.
Figure 3. Fusebill Create a Recurring Add-on Pop Up
Just fill out the fields and click the Create button. It’s really that easy.
Add-ons are a great way to upsell your product or service. They can also help strengthen relationships with your customers – those who don’t need them will appreciate that they don’t have to have them and can pay less, and those who do will like that they have choices and again, are only paying for what they want/need.
Be it real or perceived, value is important to customers and can really be a big factor in how they view you and your business.