Category: Charge Thru

The Billing Project Blog

A/B Testing Subscriptions – More Challenging than it Looks

A/B testing is straightforward, you split your prospects and see which group converts best, its easy, right? WRONG! In this article we explore some of the hidden challenges that make reaching the real answer with A/B testing more complex in a subscription environment. The value of a subscription product lies, not just in the initial…

Online Payments are a Disaster, Can Bitcoin Save Us?

Online payments is a complex mess that fails to meet the needs of customers, vendors or developers. BitCoin may be the first viable digital currency and could provide simpler and more straight forward ways to solve this problem. In this article we look at the shortcomings of the existing payment solutions and look at the…

Purchase Flow Parade

This article is a short survey of the purchase flows from fifteen cloud storage provider websites to review the different models, tricks and techniques used to entice their customers to buy. In a future post we will outline some hints for purchase flow optimization. Cloud storage solutions are increasingly commodity offerings from a feature point of view,…

The Rise of Usage Based Billing

Usage, or activity based billing is on the ascendant. In a recent whitepaper, iGR reported that over 28% of SMBs they surveyed are already using usage based billing and of those considering changing their billing practices 49% are actively considering a usage based model. In this article we dig into the pros and cons of a usage model…

Churn to the Power Three

Churn is probably the most critical concept to understand about your subscription business. In this article we describe: 3 different types of Churn 3 different ways to calculate Churn rate 3 different ways to model Churn over time Understanding all these different concepts and how they apply to your business is important. They represent different…

Beyond Subscription Billing

November 2012 saw the much publicized investment of $15.5M by Andreesson-Horowitz into ItsOn, a company that is providing new and sophisticated ways to charge their customers for telecoms services. As the telcos start to move beyond the limitations of the subscription model, we look ahead to the sorts of billing capabilities that you will need in a…

Weighing up the True Value of a Customer

How much do you value your customers? Understanding the relative value of different kinds of customer can be critical to making informed decisions about your business. In this article we discuss the calculation of Customer Lifetime Revenue and why this is an interesting and useful thing to understand. In the subscription world there’s a lot…

6 Tips for Choosing the Right Price Model

In an earlier article, “Tools of the Trade”, I laid out a number of different tools that are available in a subscription business to construct a pricing model. In this article I present 6 tips for getting the pricing model right. Simplicity The age old acronym KISS (Keep It Simple, Stupid!) applies to two fold…