[INFOGRAPHIC]: 4 Pricing Tactics for the Recurring Revenue Business

Recurring revenue business models are increasingly popular as consumer preferences move toward subscription and usage-based billing options. When done right, the move to recurring revenue is highly successful. Just ask companies like Adobe and Netflix, who have already proven that recurring revenue models provide a variety of options for packing and repacking products and services to appease a wider audience.

Today there is still a major focus on basic subscriptions, but smart companies know there is a broader range of monetization options out there that will bring in more revenue for years to come. Customers love feeling as though they have multiple options when making a purchase, so in addition to repacking products and services consider different pricing tactics for your offers. When you combine basic monetization and recurring revenue models with pricing treatments and features, the options are almost limitless.

Are you looking to increase your customer base? Try a simple subscription plan with a 30-day free trial or combine methods to create a family plan with activation fees, standard subscription pricing, overages with pricing tiers, and usage rollovers. What about increasing share of wallet from existing customers? Try usage-based plans that feature tiered usage and discounted cross-sell opportunities. Are you trying to differentiate from the competition? Try a usage plan featuring complex mediation schemes that offer tiered discounts based on the purchase of defined sets of products.

The right monetization model can accelerate your business strategy. The ability to quickly define and deploy these new models or pricing tactics can help you stay ahead of the competition. Before you take a deeper look into your product catalog for new opportunities, make sure your current billing system can support multiple pricing tactics, starting with the four listed in the infographic below.


4 Pricing Tactics for the Recurring Revenue Business

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About the Author

Eileen Bernardo
Eileen Bernardo is the Content Marketing Manager at Aria Systems where she manages content creation for multiple projects. She has an M.S. in Public Relations and Corporate Communication from New York University and a B.A. in Communication from the University of California, San Diego.

The Forrester Wave: Subscription Billing Platforms, Q4 2015

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