How do you raise subscription prices without losing so many members that you end up with lower revenue?
Raising prices is necessary in today’s inflationary times.
But many subscription businesses are making the same big mistake, relying on past value to justify future subscription rate increases.
Instead, here’s a checklist to raise prices, retain as many subscribers as possible and grow your recurring revenue:
- Grandfather – Consider retaining current pricing for some or all of your existing members.
- Engage – Identify and recruit advocates who can support you on customer forums.
- Survey – Solicit input and engagement from your subscribers in advance so they feel heard.
- Levels – Premium priced subscription tiers may generate the needed revenue without upsetting the general subscribers who are happy with what they are receiving.
- Prepaid – Give subscribers the opportunity to renew at their current pricing for an extended term.
- Future – Promote the upcoming value and benefits you will be delivering.
- Features – Announce any new features you are bringing online to help soften the blow.
- Incremental – Consider smaller, annual or semi-annual price increases instead of large price hikes that upset members.
- Communicate – No one likes surprises. Communicate clearly and treat your subscribers like you’d want your grandmother to be treated.
🎤Where I’m speaking:
The single best event for anyone growing subscription businesses is the Subscription Show produced by Subscription Insider.
There are SaaS conferences, there are funnel conferences, subscription box and a hundreds of digital marketing social media SEO conferences. All of them are great, but none of them provide as thoughtful 360-degree focus on growing subscription businesses as the Subscription Show.
The Subscription Show puts you in a room with some of the biggest subscription brands in the world.
Several of my clients have attended the Subscription Show over the years. What they tell me is the event expands their understanding of what a subscription business can be.
I’m delivering a session during the event on November 9-10 about designing the perfect subscription growth leader and team. Plus, on November 8th from 1:00 pm – 4:00 pm I’m delivering a pre-conference bootcamp on “How to Retain Your Subscribers.”
This is a brand-new workshop, focused on flipping the single biggest churn period within a subscription business into a retention period. And, you’ll walk away with exactly what you need to implement so you can experience results within hours or days of the event.
In 2019, at my last pre-conference session, there was standing room only and we all had a great time. I expect this session to sell out as well. Register early to get your seat.
My wife, Kory and I will be there all week. Probably staying the weekend to see a couple of shows. I’m happy to spend time with you to discuss your business or enjoy social time.
Check out the Subscription Show, register and let me know if you have any questions about my session, the preconference workshop or connecting while at the event. It is worth it.