This video explains how to fix pricing in a model that relies on consistency.
- One of the scariest things…about a subscription model is pricing.…If you make a mistake on pricing a widget,…you can easily make a correction.…But if you have a membership model…and set the recurring fee too low,…changing the price is a big deal…and can be perceived by your members…as breaking an implied promise.…After all, it's a forever transaction,…and the buyer has gone from consumer, evaluating options,…to member, who has accepted your terms…and is no longer evaluating.…
So, if you make a change,…you risk your transforming your member…back into being a consumer,…and then, they might cancel.…Not only that, but when they cancel,…they might also feel cheated,…so they might complain to their friends…or on social media.…If I can give you any advice, it'd be this.…Try not to make a mistake.…Make sure you're pricing high enough…to cover your overall costs while providing enough value.…Hopefully, there's an intersection there.…If you provide lots of value,…you should have a bunch of different price points…that are profitable for you.…
In this course, Robbie Kellman Baxter—author of The Membership Economy: Find Your Super Users, Master the Forever Transaction, and Build Recurring Revenue—goes into the types of skills required in a membership economy company, why onboarding matters so much in long-term customer relationships, and how to optimize the experience for loyalty. She also outlines pricing for value in the membership economy, when free makes sense, how technology can extend the infrastructure of trust, and best practices for customer success and retention.
- Building the forever transaction, the right organization, and an effective acquisition funnel
- Onboarding members for success
- Starting simple with pricing
- Leaving room in pricing for flexibility
- Using the right technology
- Tracking the right data
- Knowing when to retain members
- Transitioning from idea to going concern
- Recovering from a pricing mistake
- Understanding the difference between loyalty and inertia