Revolutionizing Your Price Segmentation Strategies in Subscription Pricing with Robbie Kellman Baxter

Robbie Kellman Baxter is an Advisor to the world's leading subscription-based companies, a Keynote Speaker and Author of The Membership Economy and The Forever Transaction. She is also the Host of Subscription Stories Podcast.

In this episode, Robbie discusses the significance of upholding ethical standards when implementing a subscription business model, as it greatly affects the company's long-term viability.

 

Why you have to check out today's podcast:

• Learn about the unethical practices in subscription pricing and their long-term implications for your business
• Find out effective price segmentation strategies that can be applied to your subscription-based business model
• Know why these companies are the best models when it comes to subscription pricing

 

"Have a rationale for your pricing structure that you would be comfortable showing to a loved one who is a customer."

- Robbie Kellman Baxter

 

Topics Covered:

01:49 - What drove her entry into Pricing

04:28 - Why some companies make it hard for subscribers to cancel and what is it's negative implication in the long run

08:12 - Bad karma as a consequence of hiding a cancellation button 

09:20 - Discussion around an advancing legislation on making it easier to cancel subscriptions anytime

11:11 - Understanding price segmentation in a subscription pricing

17:20 - How she negotiates when buying a car, for instance, knowing someone else paid a different price for that

19:20 - Price segmentation discussion around Everyday-Low Price[EDLP] versus High-low Price

21:09 - Discussing pricing segmentation used by Netflix and news organizations

23:25 - Another price segmentation point of discussion [based on where you live and how busy these areas are]

26:06 - Case in point at Macy's on price differential as the topic of discussion

27:51 - What makes her price sensitive even when she's non-price sensitive

29:20 - Robbie's best pricing advice

 

Key Takeaways:

"I tried to explain to them how [putting some friction into your cancellation process] in the short-term does work, in the long term, it kills your business. It kills your reputation, it ruins the trust." - Robbie Kellman Baxter

"Whatever it took to get you in there, it should take you out. If you can sign up any day of the week, any time of day, you shouldn't be required to cancel Tuesdays between two and four." - Robbie Kellman Baxter

"Where I come down on differentiated pricing or segmented pricing is if you can explain it to somebody. If your mother would be okay with being on the high end of that pricing and understanding why you're doing it, then I'm okay with it." - Robbie Kellman Baxter

 

People / Resources Mentioned:

• SiriusXM: https://www.siriusxm.com/
• Wells Fargo: https://www.wellsfargo.com/
• Suzi Watford: https://www.linkedin.com/in/suzi-watford-18547817/
• Dow Jones Wall Street Journal: https://en.wikipedia.org/wiki/Dow_Jones_%26_Company
• Booz Allen: https://www.boozallen.com/
• Macy's:https://www.macys.com
• JCPenney: https://www.jcpenney.com/
• Netflix: https://www.netflix.com/

 

Connect with Robbie Kellman Baxter:

• Website: https://robbiekellmanbaxter.com/
• LinkedIn: https://www.linkedin.com/in/robbiekellmanbaxter/
• Email: [email protected]

 

Connect with Mark Stiving:

• LinkedIn: https://www.linkedin.com/in/stiving/
• Email: [email protected]