Does your company relies on subscriptions to make money? This is a popular method for programs like Freshbooks, Basecamp, and CampaignMonitor. If you operate under this business model, getting people to sign up can be very frustrating. If no one signs up to your subscription, you will not be making any money.
In order to make sure the funds keep rolling in, you have to have a good plan. Having a choice of pricing plans is a great idea; if you want to be sure that everyone can afford to pay at least something for your product. This article will discuss some of the best tips that will help you make and test pricing plans for internet based subscription apps and services.
Testing your price plan
It is essential to thoroughly collect data and test you work; if you want to make sure that it fills people’s needs. If you are making a web app or service, be sure that you test it. That way you will be able to make changes whenever you need to, and improve your product or service.
When you are creating a price plan, you have to be sure that it works for your target audience. If people are happy with your prices, they are more likely to subscribe, and you will make more money. Simple business theory tells us that having good prices is essential to making cash.
Okay, so we know that we need to have a good price plan. How do we do this? How can you test out your plan? A/B testing can be used, so that you can find out how subscriptions rise or fall when you change your plan.
Website Optimizer by Google is a popular and free tool that lets you perform A/B testing.
What you can test
There are many different things that you might want to test to discover to perfect price plan. We will discuss some of them now.
How do your sales change when you raise or lower the price of your product? You can also try out ideas like changing your price to end in a 9. For example, if your product is selling for $50, would it be better to make the price $49.99. The second option only loses you one cent, but it makes the price appear lower to buyers. Many stores use this technique in order to make their prices seem lower, without losing any noticeable revenue. Be careful when changing your prices around too much. People might start to lose trust in your brand if they cannot rely on your prices being balanced.
Vary your subscribing plans
You can come up with all sorts of plans that will help your users to choose the right option. Starting people off with a cheaper plan that has less features, or has a shorter subscription time, it a great way to build sales. If someone has been using your product or service for some time at a lower price, they might consider upgrading their account. Providing cheaper plans is a great way to let people test something out before making a larger commitment.