Even though people think of me as a subscription person, I always say that for me, subscriptions are simply a tactic. Subscriptions force companies to better align their pricing with performance. If the subscriber doesn’t perceive ongoing value, they cancel the subscription…so it becomes the organization’s responsibility to ensure that the customer is achieving the desired outcome. That’s the real goal of subscriptions—to better align payment with outcome.
Professor Marco Bertini is a professor at both Esade in Spain and the Harvard Business School here in the US. He is an expert on performance-based pricing—not just subscriptions, but pay-for-consumption models and even outcome-based pricing.
Marco’s new book, The Ends Game: How Smart Companies Stop Selling Products and Start Delivering Value, which he cowrote with Oded Koenigsberg of the London Business School is one of the best pricing books I’ve read in a long time. In today’s conversation, we talk about how to optimize your pricing model to ensure that your customers can access the value you provide, use your offering well, and most importantly get the performance outcomes they need. Welcome to the show marco.
To drive recurring revenue, you need products and services that people use. Habitually. Repeatedly. Organizations strive to design addictive subscriptions. But for every beloved...
Loyalty programs seem to be at a crossroads. Industries including hospitality, financial services, and retail are going beyond the points-based programs we're so familiar...
With subscription models, acquisition is only the starting line. Organizations need to develop competence around onboarding new members, driving engagement, and expanding the relationship...