Why so many subscription packages?
Updated: Nov 22, 2019
Packaging services in a service contract seems logical. Bundle a set of features, determine your cost recovery requirements and set your monthly price. Right? So, why are so many businesses over complicating the process?
We have a voice or cloud or (enter technology here) offer - 3-4 packages to chose from basic up to feature complete. We find most customers are buying this one. Yet, we still take the time to break-out multiple SKUs, onboarding requirements, features sheets, price points and service plans.
So, why all the options? Look at other industry leaders:
Apple Music - 1 plan for individuals, 1 for families
Amazon Prime - 1 plan for individuals, 1 for students
Microsoft Office 365 - 1 plan for Home, 1 plan for Personal, 1 plan for Student
Yes, they do have a couple of options, but those options are segmented by number of users, the feature sets do not diverge. Effectively, pay per user models.
So, take a page from the tech giants and simplify your models.