Posted by: Matt Shanahan In the same way that Demand Rating™ helps maximize up-selling opportunities, it can also play a critical role in prospect to customer conversion efforts and opportunities. Take for example, the freemium model where a low end version of the product or service is offered for free with hopes of converting that prospect to a subscriber of a higher end product, or the free-trial model where prospects can try the product for a specific period of time before buying. How does the organization prioritize its conversion efforts? How does it know to which prospect the product is delivering the most value? By now you know the answer. Demand Rating gives a comparable number to work from. Conversion […]
Archive | 2009
Demand Rating™ in the Real World—Up-selling
Posted by: Matt Shanahan Up-selling is another important play in the subscription revenue optimization game. When should you run that play? Again, Demand Rating™ provides new insight, offering quantitative indicators for when sales should pursue an up-sell opportunity. Recently, we spoke to a publisher that offers a subscription service to both corporations and individuals. Corporate subscriptions are driven by a corporate sales team that sells a premier service offering, while individual subscriptions are distributed through membership in a key professional association. The publisher had a hunch that if individual subscriptions being used inside a corporation could be identified, then they could up-sell a corporate subscription. Unfortunately, the publisher had no way to quantify the potential opportunity or take advantage of […]
Demand Rating™ in the Real World—Cross-selling
Posted by: Matt Shanahan Subscriber loyalty is not just about revenue retention. In fact, revenue expansion is where a loyalty metric really starts to hit its stride—cross-selling, up-selling, and even new subscriber acquisition. Because Demand Rating is measure of subscriber loyalty, it can be used to identify new revenue opportunities with existing subscribers through targeted cross-selling efforts. Denials, the statistic that tracks attempted access of unlicensed content or services, is a great indicator of subscriber demand, but denials alone don’t indicate whether a cross-sell opportunity exists. Demand Ratings give that insight. High Demand Ratings equal subscriber loyalty, so subscribers with high Demand Ratings are already ‘feeling the love’ with your offerings. They perceive good value in your service, making them likely to be open […]
Demand Rating™ in the Real World—Churn
Posted by: Matt Shanahan Another critical use of Demand Rating™ is to better understand and reduce churn—a threat to any subscription business model. A no-churn mentality drives profits and creates a platform for growth. Unfortunately, most organizations don’t have the necessary optics to determine which subscribers have waning loyalty and are at risk of defection. While web analytics tools might deliver standard low usage reports, they can be misleading. Demand Rating enriches web analytics with contract and firmographic data—supplying a normalized metric for comparison—and giving new insight into preventing churn before it happens. Here’s how Demand Rating helps: Which subscribers are at risk? While low usage is never good, often it’s difficult to know what’s low. Take a global financial […]
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