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Clients using Recurly Inc. to manage their subscription-pricing models have a new feature to use. Recurly on Tuesday launched a ramp-pricing model that enables its clients to dynamically increase or decrease pricing within their subscriptions. This is in addition to the fixed, one-time, usage-based, tiered, volume, stairstep, and hybrid models San Francisco-based Recurly offers.
In an example, a merchant may set an introductory rate of $9.99 per month for three months, but increase it to $19.99 per month after that period.
“Our latest ramp-pricing option allows, for example, subscription businesses to attract new consumers to their program through a discounted point of entry that ramps up over time to the full subscription cost,” Jonas Flodh, Recurly chief product officer, said in a statement. “Increasingly, we’re also seeing businesses leveraging ramp pricing to instill customer loyalty, offering discounts in pricing over the subscription lifetime.”
Pricing is vital to capturing new customers, Recurly says. “As subscription businesses continue to compete for consumers’ share of wallet and adapt to shifting demands, establishing optimal pricing across unique subscriber segments remains a strong tool in subscriber acquisition, retention, and loyalty. Pricing is the leading factor in the subscription-purchase decision, according to Recurly research.”
On average, U.S. consumers spends $273 per month on subscription services, according to a 2021 report from consulting firm West Monroe. Recurly’s own research found that 63% of consumers said they will consider giving subscriptions as a gift and 70% were interested in receiving subscriptions as a gift.
In September, Recurly announced it would acquire LeapRev, a revenue-recognition and forecasting provider.
