Any advice for creating a pricing strategy for a value-based B2C subscription product for a brand new company?

I know what my competitors and similar products are charging, but I'm trying to figure out how to estimate conversion, churn, and customer lifetime for my product. We are a brand new company (so no existing branding or customer trust), we are B2C in the healthcare & fitness space, and we have a value-based product - i.e. not media streaming, or physical goods - like Medium. Any thoughts or resources about how to approach this analysis would be helpful. Thanks!

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2 Answers

Pricing and Packaging

Bhavika Thakkar

Microsoft Sr. Director of Product Marketing & Growth- Copilot | Formerly Adobe, GoDaddy, Xero • Jun 3

I’d first separate the business model question from the pricing question. If the company is still deciding between subscription vs. advertising, that needs to be resolved first because the success metrics are very different: subscription depends on perceived value, habit, retention, and willingness to pay; advertising depends more on scale, engagement, and audience monetization. But if competitors are already succeeding with subscription pricing, I’d use that as a signal that consumers have perm ...Read More

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Nate Franklin

Airtable Senior Director, Product Marketing • 3y

Let me preface my response and say that B2C is not the bulk of my experience, but here's how I would approach it. You have to talk to customers. I would start by trying to understand what customers alternatives are to your product and how much time, energy and of course $$ it costs them. That's a good way to think about a starting place. Then running a pricing survey and ultimately a price test is the way to go. Depending on your product, having multiple levels will make sense - but you probably ...Read More

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