Gartner Research

Align Subscription Pricing to Customer Value With Volume Usage Tiers

Published: 10 March 2020

ID: G00465402

Analyst(s): Laurie Wurster, Jeff Chamberlain, Ron Burns

Summary

Product marketers seeking growth with subscription models need to institute innovative pricing approaches that equate value to customer business outcome. Tiered pricing metrics combine simplicity and a strong alignment with value to support major stages of the customer relationship.

Table Of Contents
  • Key Challenges

Introduction

Analysis

  • Utilize Pricing Metrics Inspired by Business Outcomes
  • Create Sustainable Growth by Implementing Tiers
    • Step 1: Design the Lowest Tiers to Be Competitive and Win New Customers
    • Step 2: Design the Upper Tiers for the Highest Levels of Delivered Value/Success
    • Step 3: Design Middle-Tier Levels That Inherently Define/Prove Usage Value

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