"First thing" is the tricky piece of this question, because in reality the first thing you should do is really evaluate where your value resides for different segments and customer profiles you're selling into. You can use JTBD, personas, pricing profiles, or any other framework, but you need something to understand where value resides.
From there, there's a few tactical pieces that have different levels of impact:
Make sure you're using some sort of value metric - charging per user, per 100 visits, per $100 spent, etc. This'll take you back to econ class where your professor told you about the demand curve and basically that optimizing revenue has to do with having multiple price points.
Value metrics make sure you're not charging Disney and a johnny or jane startup the same amount for different usages and it bakes expansion right into how you make money. As the user uses/consumes more s/he then ends up paying you more. Lots of pieces to be careful about here when you actually do this, but there isn't a single other growth lever that has the power of value metrics.
One of the most underutilized monetization levers in the world of subscriptions right now is the lack of add-ons. We just kind of assume we should put all the features inside our tiers, which stems from the first 20 years of SaaS not really having a lot of features, which therein caused us to bundle everything in the hopes of providing enough value. The problem is that most of our features aren't utilized or valued by everyone.
A good heuristic for a lot of companies is that if you have a feature that's used by less than 40% of a particular group (your entire base if you don't differentiate features or the people in a tier), you probably have a good candidate for an add-on that can not only be sold to folks in that group, but the wider customer or user base.
We've seen that customers with at least one add-on typically have LTVs that are 18-54% higher than those with no add-ons, because they're typically paying more for the add-on (increase in ARPU) and they're more bought in (increase in retention).
The reason I started with - you need to understand your value is that knowing where your value comes from allows you to even start to do either of the above.
This question is part of an AMA with Patrick Campbell.View entire AMA with Patrick Campbell.
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