Pricing Models Of Marketing Campaigns

1161 Words5 Pages
The membership economy is growing and with it comes a shift in revenue generation and consumer demands. Adapting to these changes isn’t optional. It’s a requirement for all companies seeking to stay in business. From software to healthcare, multiple industries are adjusting from standard one-time purchases to recurring pricing models. Customers would rather subscribe to on-demand Internet streaming providers, instead of purchasing a DVD. As new competitors emerge, this model will influence consumer expectations and market behaviors. Brands will engage customers through marketing campaigns, leading to long-term relationships. So, how will these changes affect you? Let’s discuss how your company can thrive with a recurring pricing model.…show more content…
Then, create a strategy to monetize these relationships. Make your customers’ lives better, and they will be less reluctant to make the shift from owner of products to subscriber of services. Why Recurring Pricing Makes Sense Companies adopt the recurring pricing model to create strategic business opportunities. A study by Ventana Research shows that the primary business drivers for using such a model are “increasing the top line, enhancing the customer experience, and increasing customer loyalty.” Source Generating a steady cash flow reassures executives and keeps investors profitable. Recurring pricing gives companies a clear outlook on next month’s income; no more relying on revenue estimations. Moreover, businesses can plan for growth. A stable revenue source means you don’t have to secure one-off contracts just to make payroll. Time and energy can be directed toward expansion, like hiring new employees. However, in the membership economy, companies must continually offer value to their consumers to succeed. How do customers when with this model? Recurring pricing offers reliability to consumers. In developed countries, most people expect running water to be available 24/7. It’s a given. This mindset is expanding to Internet access. We expect every grocery store, coffee shop, and hotel chain to offer Wi-Fi. Matt Meeker, BarkBox 's founder, told All Things Digital: “BarkBox wouldn 't have made much sense back when there wasn
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