Make Subscription Pricing Your Startup’s Secret Weapon
The entire business world has shifted beneath our feet. Companies are rushing to focus on the needs of locked down, immobile consumers, who are now forced to go totally digital to carry on with their lives. Exercise at home, educate at home, entertain at home, eat at home.
It’s a weird new gold rush. And it won’t last. There will be a winner or two, sure. Zoom comes to mind. But as quickly as these initiatives spin up, most of the players will disappear when life returns to normal.
That said, one evolution that was already underway and will trend through and beyond the coronavirus crisis is a shift to subscription pricing models to pay for services. The impact from the current crisis is accelerating that trend, and subscription pricing is now much more likely to become the norm sooner rather than later.
That’s very good for service and SaaS startups who can use subscription pricing as a differentiator and a weapon against their industry incumbents.
So let’s take a look at why service subscription models make so much sense in this new normal, and then talk about how to do them right.
