Archive | June, 2014

Why One-Size-Fits-All Annual Price Increases Don’t Work

Value-based Pricing Best for Renewals

In the subscription economy, cost of delivery matters in setting prices, but the factor that’s quickly becoming dominant is value delivered. As described in the book B4B: How Technology and Big Data Are Reinventing the Customer-Supplier Relationship, customers increasingly want to pay for outcomes, or “realized value.”

How a Simple Three-question Survey Tripled the Activation Rate of “No-Show” Users

Reactivation Through User Nurturing

User nurturing can have a big positive impact on both adoption and customer success, as we’ve discussed in earlier research alerts. But user nurturing can also be critical to retention. Like so many customer dynamics, churn starts gradually—and if left unnoticed, it can develop into issues that are impossible to resolve. Assuming you’ve been able to achieve your implementation and adoption milestones, any customer and revenue churn usually starts with user churn. User churn (i.e., loss of users) is when individuals start to drift away from using your solution. At renewal time, this drop in usage results in seat churn (i.e., loss of quantity on renewal), which is the first loss of revenue. Ultimately, further usage drops can result in […]