3 marketing hacks for a subscription based business
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Transcript of 3 marketing hacks for a subscription based business
Pam CheingMarketing Manager
Pam is the Marketing Manager at Ezypay; is interested in SEO, Google Analytics and
contributing to the coffee and bacon economy.
Meera KrishnanWebsite Developer & DesignerMeera is the Web Developer and Designer at Ezypay, who has loads of amazing ideas and likes to explore new technology.
3 MARKETING HACKSTO TURN ANY BUSINESS INTOA SUBSCRIPTION SERVICE
Sydney
AUSTRALIA
NEW ZEALAND
SINGAPORE
MALAYSIA
THE PHILIPPINES
HONG KONG TAIWAN
CHINA
Collection Rate
Pam CheingMarketing Manager
Pam is the Marketing Manager at Ezypay; is interested in SEO, Google Analytics and
contributing to the coffee and bacon economy.
Meera KrishnanWebsite Developer & DesignerMeera is the Web Developer and Designer at Ezypay, who has loads of amazing ideas and likes to explore new technology.
3 MARKETING HACKSTO TURN ANY BUSINESS INTOA SUBSCRIPTION SERVICEVERY, VERY, VERY VALUABLE
Pam CheingMarketing Manager
Pam is the Marketing Manager at Ezypay; is interested in SEO, Google Analytics and
contributing to the coffee and bacon economy.
Meera KrishnanWebsite Developer & DesignerMeera is the Web Developer and Designer at Ezypay, who has loads of amazing ideas and likes to explore new technology.
3 MARKETING HACKSTO TURN ANY BUSINESS INTOA SUBSCRIPTION SERVICE
Increase yourSALES REVENUE
in the next
12 months
by at least
40%
HACK 1 Converting into a subscription-based business model
HACK 2 Create the Right Pricing Strategy
HACK 3 Use the right technology
HACK 4 BONUS
Q&A
What we will cover today
HACK 1 Converting into a subscription-based business model
HACK 2 Create the Right Pricing Strategy
HACK 3 Use the right technology
HACK 4 BONUS
Q&A
What we will cover today
HACK 1 Converting into a subscription-based business model
HACK 2 Create the Right Pricing Strategy
HACK 3 Use the right technology
HACK 4 BONUS
Q&A
What we will cover today
HACK 1 Converting into a subscription-based business model
HACK 2 Create the Right Pricing Strategy
HACK 3 Use the right technology
HACK 4 BONUS
Q&A
What we will cover today
HACK 1 Converting into a subscription-based business model
HACK 2 Create the Right Pricing Strategy
HACK 3 Use the right technology
HACK 4 BONUS
Q&A
What we will cover today
HACK 1 Converting into a subscription-based business model
HACK 2 Create the Right Pricing Strategy
HACK 3 Use the right technology
HACK 4 BONUS
Q&A
What we will cover today
Something we’ve tested and refined over twenty yearsof being in the subscription business
Some brought us good results while others were colossal failures
Share ideas that we tried and actually worked for us
Balance increasing the revenue VS retaining more customers
DISCLAIMER
Transactional Model
Converting into a subscription-based business modelHACK 1
The Difference
HACK 1
SubscriptionBasedVS
ACCESSTransactiona
l
Converting into a subscription-based business model
Converting Into ASubscription-Based Business Model
Subscription-BasedTransactional
HACK 1 Converting into a subscription-based business model
Why Subscription-BasedBusiness Model
HACK 1
Promotes cash flow The monthly price tends to be lower than a standard transactional price
Converting into a subscription-based business model
Why Subscription-BasedBusiness Model
HACK 1
Promotes cash flow The monthly price tends to be lower than a standard transactional price
Consumers have better ownership Customers can choose a variety of services or product from the package as and when it suits their needs
Converting into a subscription-based business model
Why Subscription-BasedBusiness Model
HACK 1
Promotes cash flow The monthly price tends to be lower than a standard transactional price
Consumers have better ownership Customers can choose a variety of services or product from the package as and when it suits their needs
Retains customersBy building an online community, you give your customers a reason to keep coming back for more.Converting into a subscription-based business model
5 Major Types OfSubscription-Based Business
HACK 1
Digital subscriptions Social networks
Small businessesthat build connectionwith their customers
Non-profits andtrade associations
Loyalty programs
Converting into a subscription-based business model
Setting The Foundation
HACK 1
=BUSINESS Digital Subscription
Loyalty Program
Online Community
Local Community
Other Combination
Converting into a subscription-based business model
Your Team
HACK 1
Transaction Subscription-basedCEO Product driven Relationship driven
Product Team Big releases Regular iterationsSales Big game hunting Farming
Support Minimizing anger Maximize loyaltyMarketing One-way
communicationTwo-way
communicationIT &
OperationsCustom solutions, requiring plenty of
in-house staff
Outsourcing non core requirements, leveraging on the
cloud and avoiding customisation
Converting into a subscription-based business model
You Need To
HACK 1
Empoweryour frontline staff to be able to recognize your members as individuals and take good care of them
Invest
Measure
Rethink
Promote
Converting into a subscription-based business model
You Need To
HACK 1
Empower
Investin your community and the people to manage the relationships and ensure their success
Measure
Rethink
Promote
Converting into a subscription-based business model
You Need To
HACK 1
Empower
Invest
Measurethe success of salespeople not by the transaction value but on the basis of customer lifetime value
Rethink
Promote
Converting into a subscription-based business model
You Need To
HACK 1
Empower
Invest
Measure
Rethinkhow you quantify customer satisfaction and quality support
Promote
Converting into a subscription-based business model
You Need To
HACK 1
Empower
Invest
Measure
Rethink
Promotea culture of marketing innovation because it is now no more enough to just stick to key types of campaigns and activities
Converting into a subscription-based business model
A Typical Sales Funnel
HACK 1
Aware
Trial
Sign Up
Loyal Members
Total Available Market
Aware butnot engaged
Happy Customers
Converting into a subscription-based business model
Subscription-Based Funnel
HACK 1
Total Available Market
Marketing done for you!
Aware
Trial
Sign Up
Loyal Members
Increasing Engagement
(CLV)
Referral Source
Forever Transaction
Converting into a subscription-based business model
If The Price Is Right
HACK 2
You’ll be able to predict your cash flow better
Pricing for a subscription-based businessis not as simple as it seems
Create the right pricing strategy
4 Revenue Streams
HACK 2
1. Subscription• Most people prefer to have
three pricing options • Most likely to choose the middle
option• Price according to the value
your customer receives • Be prepared to adjust the
pricing
2. A La Carte Services
3. Supplementary Products
4. Partnership Streams
Create the right pricing strategy
4 Revenue Streams
HACK 2
1. Subscription
2. A La Carte Services• Once-off, special products or
services• Don’t automatically add on
these services into higher tier pricing
3. Supplementary Products
4. Partnership Streams
Create the right pricing strategy
4 Revenue Streams
HACK 2
1. Subscription
2. A La Carte Services
3. Supplementary Products• Offer additional products
that make sense and add value to your service or product
4. Partnership Streams
Create the right pricing strategy
4 Revenue Streams
HACK 2
1. Subscription
2. A La Carte Services
3. Supplementary Products
4. Partnership Streams• Effective and money-saving
method of increasing your income and increasing the value of your service without much investment
Create the right pricing strategy
FREEBIE or FREEMIUM?
HACK 2 Create the right pricing strategy
We offer free stuff to build interest andto showcase the value of their product or service
When would be the best time to offer something
for free or a freemium?
WHAT IS THE DIFFERENCE?
We offer free stuff to build interest andto showcase the value of their product or service
When would be the best time to offer something
for free or a freemium?
WHAT IS THE DIFFERENCE?
FREEBIE
• Offers the full experience
FREEMIUM
• Offers the most basic subscription level
• Meant to build awareness• Build a community of
users
FREEBIE or FREEMIUM?
HACK 2 Create the right pricing strategy
FREEBIE or FREEMIUM?
HACK 2 Create the right pricing strategy
The danger of providing a freemium is that you may find it challenging to convert majority of users into paying customers.
It is a good idea if having more users can add more value to your business.
HACK 1 Converting into a subscription-based business model
HACK 2 Create the Right Pricing Strategy
HACK 3 Use the right technology
HACK 4 BONUS
Q&A
Recap
HACK 1 Converting into a subscription-based business model
HACK 2 Create the Right Pricing Strategy
HACK 3 Use the right technology
HACK 4 BONUS
Q&A
Recap
HACK 1 Converting into a subscription-based business model
HACK 2 Create the Right Pricing Strategy
HACK 3 Use the right technology
HACK 4 BONUS
Q&A
Recap
HACK 1 Converting into a subscription-based business model
HACK 2 Create the Right Pricing Strategy
HACK 3 Use the right technology
HACK 4 BONUS
Q&A
Recap
Using The Right Technology
HACK 3 Use the right technology
1. Marketing Automation• Helps you keep track and
measure the performance of different levels in your sales funnel
• If the customer leaves, you can device campaigns to win them back
2. A Good CRM
3. Subscription-BasedBilling System
4. Customer Success Tracker
Using The Right Technology
HACK 3 Use the right technology
1. Marketing Automation
2. A Good CRM
3. Subscription-BasedBilling System
4. Customer Success Tracker
Marketing
Sales
Customer Support
Lead
Convert to Customer
Retain Customer
Using The Right Technology
HACK 3 Use the right technology
1. Marketing Automation
2. A Good CRM
3. Subscription-BasedBilling System• Create payment plans that
make sense to their industry• Automated to collect
payments every day, week or month
4. Customer Success Tracker
Using The Right Technology
HACK 3 Use the right technology
1. Marketing Automation
2. A Good CRM
3. Subscription-BasedBilling System
4. Customer Success Tracker• The happier your customers
are, the higher the likelihood of retention.
Conclusion
Hire more peopleHire new talent
Investing more into your business
Right mindsetRight priceRight tools
Passive Churn
HACK 4 BONUS – Passive Churn
Occurs when a business loses members not because of a bad product or service, but simply
because the customer had a bad payment transaction.
Failed Payment
HACK 4 BONUS – Passive Churn
Insufficient funds
Expired credit card
Cancelled credit card
S u c c e s s f u l Pa y m e n t C o l l e c t i o n
Established standard procedures in handling failed transactions
Automated process
Fully trained customer support team
Q&A