Rethinking Your Products, Packaging, and Pricing for Recurring Revenue Success

Think of your new and existing products and services. Are there other ways you can package and price your offerings? Whether your goal is to grow your customer base, revenue, market share, or share of wallet, recurring revenue models can provide a multitude of options for creating new revenue streams from new or existing products.

Much of the industry is still talking about the success of basic subscriptions (Amazon Prime, Netflix, Box, etc.), but many forward-thinking companies know the real value is in the broader range of monetization options. Nearly any product in your catalog can be repackaged into a recurring revenue service with a vast array of pricing options. Whatever your goals may be you have options… and lots of them.

Your options begin with the monetization model of choice:

  • Subscription pricing calls for a customer to pay in advance for a defined set of services to be delivered over a period of time.
  • Usage pricing gives a customer access to a product or service and is charged periodically on a per-unit or per-event basis.
  • Subscription plus usage charges a customer a combination of a subscription rate plus some type of usage charge.

Whichever you choose, these three basic models provide a starting point that can later be supplemented with a wide variety of pricing treatments and features.

So how do you know whether or not your enterprise will be successful using recurring revenue? The Consumable, Measurable, Repeatable (CMR) Model provides you with a simple tool for identifying products that can easily be marketed and sold using a recurring revenue model. The upside? Almost anything can be packaged as a recurring revenue offering as long as it’s done strategically.

The No BS Guide to Recurring Revenue Success will help you decide which monetization model works best to package your products and services using the CMR Model. Download the guide today and discover how your business can increase recurring revenue and ensure success for years to come.

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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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