Arriving at the ideal pricing model for your subscription business can be a challenging process. How much should you charge? How often should you change your pricing? What pricing model should you use? These questions, and many more, are a constant concern for companies of all sizes.

1. The Art and Science
of Subscription Pricing

2. Brought to you by The Product Stack, a group of like-minded organizations
that offer practical solutions for modern product teams. Our quest is to shine
a light on the challenges everyday product teams face and offer up real
advice and solutions that address these challenges head on.
Join the conversation at www.TheProductStack.com.

3. Kevin Steigerwald
Jama Software
(Notion Founder),
VP of Products & UX
Today’s Panel
Jim Semick
ProductPlan
Chief Strategist & Co-
Founder
Patrick Campbell
ProfitWell,
CEO & Co-Founder
Ronan Dunlop
Director of Marketing,
Pivotal Tracker & Pivotal
Services
Submit questions at anytime during the webinar!

4. Who is joining us today?

5. Agenda
1. The Pricing Landscape - Patrick Campbell
2. Lessons Learned
3. Determining Pricing Models With Internal Stakeholders
4. Developing the Perfect Pricing Strategy With Your
customers
5. Live QA
Submit questions at anytime during the webinar!

6. Brought to you by
When it comes to growth,
we’re living on another planet.

7. Competition is now rampant.

8. CONSUMERS ARE GETTING HAMMERED
Number of Competitors in First Year in Business
Companies started more than a year ago had far fewer competitors in their space than companies
started today.
AVERAGE#OFCOMPETITORSINTHEIR1STYEAR
AGE OF
COMPANY
2016 SOFTWARE MARKET
SURVEY
N = 1432 software founders and executives
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10. Businesses have lost their power.

11. CAC is Steadily Increasing Over Time

12. UNIT ECONOMICS AREN’T WHAT THEY USED TO BE
Customer acquisition cost has increased significantly
Customer acquisition cost has increased significantly over the years due to market saturation of
marketing vying for consumer attention.
BLENDEDCACRELATIVETOFOURYEARSAGO
SOURCE: 2017 CAC
STUDY
WHEN MEASUREMENT WAS
TAKEN
N
743
N = 743
companies
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13. The relative value of features is declining.

14. THE MARKET IS DROPPING OUT BENEATH US
Consumer Willingness to Pay has Declined Over Time
Software willingness to pay has declined significantly over the past few years due to increased
options and higher demands.
WTPAS%OFWTP4YEARSAGO
SOURCE: 2017 CONSUMER WILLINGNESS TO PAY
STUDY
WHEN MEASUREMENT WAS
TAKEN
N = Varies by line, but minimum of 10,000 customer respondents per line
N
921k
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15. Consumers are so ungrateful.

16. THE MARKET IS DROPPING OUT BENEATH US
Despite Amazing Advances, NPS is Actually Down Overall
Average NPS scores are actually falling pretty dramatically over the past five years, indicating either
we’re just getting worse at our jobs or consumers re expecting more
AVERAGENPSSCORE
YEARS AGO
SOURCE: 2017 SAAS STUDY
N = 1,784 software companies
N
1,784
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17. Acquisition is now table
stakes.

18. WE FOCUS ON THE WRONG FUNDAMENTALS
Impact of Improving Each Pillar of Your Business
Monetization and retention based growth far outpaces acquisition based growth. This impact is
getting greater over time.
%IMPACTON
REVENUE
SOURCE: 2016 STUDY ON COMPANY UNIT
ECONOMICS
N
734
N = Data from 734 software companies
PILLAR OF THE BUSINESS
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19. WE FOCUS ON THE WRONG FUNDAMENTALS
Impact of Improving Each Pillar of Your Business
Monetization and retention based growth far outpaces acquisition based growth. This impact is
getting greater over time.
%IMPACTON
REVENUE
SOURCE: 2016 STUDY ON COMPANY UNIT
ECONOMICS
N
1.4k
N = Data from 1.4k software companies
PILLAR OF THE BUSINESS
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20. Monetization and retention are 4-8x
more effective for growth than
acquisition.

21. When was the last time
you changed pricing?

22. Pricing Lessons Learned

23. What department should be
responsible for the pricing strategy?

24. Determining Pricing Models With
Internal Stakeholders

25. What might prevent you from
changing your subscription plans?

26. Developing The Perfect Pricing
Strategy With Your Customers

27. Do you offer a free trial?

28. Live Q & A
Continue the conversation at www.TheProductStack.com
Free Product Trials:
www.productplan.com
www.pivotaltracker.com
www.usenotion.com
www.priceintelligently.com/#freeaudit

29. Thank You.
Continue the conversation at www.TheProductStack.com
Free Product Trials:
www.productplan.com
www.pivotaltracker.com
www.usenotion.com
www.priceintelligently.com/#freeaudit