Each week for our Patreon members, we share notes from the live show. These notes are a quick hit summary of the live show. Easy to scan. Easy to digest and a great way to follow along when listening to the recorded show. They are our version of CliffsNotes (and we know you remember those).
What follows are those summary notes from the interview with Mark Stiving for all to enjoy!
Mark’s most recent book — Win, Keep, Grow — is all about pricing your subscription business which we are ALL OVER here at The Soul of Enterprise.
Acquisition, retention, and expansion were too close to consulting language for Mark, hence Win. Keep. Grow.
If there is a recurring benefit then it makes sense to have a subscription model. That might sound more like common sense today than it did a few years ago but it’s still ultimately important.
Customer success is all about making sure your users are getting value from your product. That means they will keep paying and maybe even upgrade.
Shout out to Geraldine Carter, a Patreon member and listener. Check out her website at https://www.shethinksbigcoaching.com/
Mark addresses the naysayer in his book. The one who says, “Why should I subscribe? I’m going to pay more over time.” The number one reason is that, at least in the world of software, the product keeps getting better and better over time.
Are people resetting the value conversation from annual to monthly in the subscription world? Mark see that companies are choosing a time frame based on what they are building towards.
You need to have a monthly subscription. It says that you are confident in your product and are going to deliver a ton of value. After a few months, a longer commitment is absolutely reasonable to put on the table. Providing only an annual offer takes away a big benefit of the subscription model.
There are three value levers you have when thinking about the subscription business model: market segment, packaging, and your pricing metric
A pricing metric is “what do you charge for?” Physical goods, for example. With subscriptions, we get to choose what we are going to charge for and it’s a really important decision.
The value metric is how our buyers perceive value from our products. “I love your company because our x went from y to z.”
GE went all in on value stories. Check this link out for more: https://www.ge.com/digital/industrial-managed-services-remote-monitoring-for-iiot/article/331691-performance-recovery-on-gas-turbines
In SMBs it is tougher to do a dual business model that includes a mix of subscription business. Going from transactional to subscription can be smooth if done correctly.
Here’s a great impact statement from Mark: Your new subscription product must be BETTER than your traditional product for your buyers.
Did you know that Netflix FIRED customers who were not using the service? Here is a link to more info: https://about.netflix.com/en/news/helping-members-who-havent-been-watching-cancel
“In subscription, if you are not calculating your Customer Lifetime Value (CLV) then you can’t run your financials.” —Mark Stiving
Hey! Did you know that 15 seconds at this link could change your life? Well, probably not but as a listener, it could help us just a little bit :) RateThisPodcast.com/TSOE
Carrots and sticks are how the transition from an older business model to subscription can be handled. In Mark’s experience, it starts with the carrots and then the sticks.
We’re doing more for our customers anytime we transition to subscription. We are able to solve more problems for our customers.
A big THANK YOU to Mark Stiving for joining us today to talk about his new book. Learn more about Mark at this link: https://impactpricing.com/
What’s up for next week? Woke capitalism.
Bonus Content is Available As Well
Did you know that each week after our live show, Ron and Ed take to the microphone for a bonus show? Typically, this bonus show is an extension of the live show topic (sometimes even with the same guest) and a few other pieces of news, current events, or things that have caught our attention.
This week was bonus episode 348 - more with Mark Stiving!
Click the “FANATIC” image to learn more about pricing and member benefits.