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Why so many subscription packages?

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.

Blog photo by Austin Distel on Unsplash

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