In recent years, the surge in inflation and the rising cost of living have forced consumers to tighten their spending habits. Among the first casualties are often discretionary expenses like subscriptions. Content-based businesses have felt the pinch and, in response, resorted to price hikes to secure short-term liquidity. While some consumers have accepted these temporary increases, many have opted for cheaper alternatives or, in some cases, cancelled their subscriptions. This cyclical and unsustainable trend has left content businesses grappling with increased churn and decreased customer acquisition.

Through our work with various clients in the content industry, we’ve recognized that the quickest path to sustainable growth lies in optimizing your revenue model. This involves configuring your business to maximize the value you provide to your audience. The key is to identify and implement the ideal pricing and packaging solutions that resonate with both your customers and your business. When we talk about the “right” solution, we mean establishing the purchasing levers that align with your customer’s preferences, all while bolstering your crucial performance metrics and ultimately boosting profits.

We’ve found that there are 6 activities that are fundamental to get right, in order to define the right pricing and packaging approach for your business:

1. Customer value – Understand the value equation for your target audiences: what they want, how they want to buy it, and how much they’ll pay for it

2. Market awareness – You should know where your business stands in relation to competitors and how you should position yourself to stand out effectively.

3. Commercial value – Model the commercial implications of different pricing and packaging approaches, to identify the solution which will maximise both volume and revenue uplift

4. Feasible execution – It’s crucial to consider delivery considerations that minimise implementation risks and enhance market success.

5. Solution design – Develop the market-facing solution that will give customers what they want, whilst also maximising your KPIs

6. In-market testing – Test these new pricing & packaging solutions in-market to validate commercial impact before scaling

While getting these six activities right is a prerequisite for determining the optimal pricing and packaging approach, executing them alone won’t guarantee successful implementation. Two additional crucial elements are often overlooked:

• Objective alignment – Identifying the right objectives and the KPIs that can genuinely drive progress is essential.
• Coordination – Building a solution that aligns with your business and ensuring everyone is on board and working harmoniously throughout the process.

We acknowledge that challenges may arise when external parties are brought in to assist. Often, recommendations are too theoretical, approaches too generic, or key stakeholders resist change, leaving those striving to make changes feeling unprepared.

At Manifesto, we understand that every business has its unique objectives and priorities. That’s why we customize our approach to suit your specific needs. We collaborate closely with your teams, ensuring everyone is aligned and working toward a common objective. We empower business leaders to make bold decisions, and we provide unwavering support throughout the journey.

Discover how we helped Skillshare optimise its pricing and packaging for sustainable growth.

Get in touch with our pricing and packaging experts Sarah and Gordon to find out how you could optimise your revenue model today.