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 efforts should be targeted first towards those that are getting the most value out of their free version—those with a high demand rating.  Those with a low demand rating are probably not worth the sales effort, and those in the middle might be helpful for understanding product refinement.

Next, Mark will look at Demand Ranking – the ability cluster and compare groups of customers.

Behavioral Analytics, Demand Rating, Subscriptions, Up-sell Behavioral Analytics, Demand Rating, Subscriptions, Up-sell

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 it.  Enter Demand Rating.

The publisher will identify individual subscriptions used from within target corporations by grabbing the domain name associated with access.  Since each individual has a demand rating and the demand ratings of all individuals from that corporation can be aggregated, the aggregate rating serves as an indicator of overall demand within the corporation.   The new rating of target corporations arms the sales team with critical information.  First, prospects can be qualified and ranked by the aggregated individual demand, helping the sales team to know where the low hanging fruit might be.  Second, the quantitative data can be used as a part of the sales process, offering proof of need to the decision makers. 

Converting individual licenses to corporate licenses can be highly lucrative and very strategic.  The organization is also considering a seeding partnership with the association to further take advantage of the opportunity.

Behavioral Analytics, Demand Rating, Subscriptions, Up-sell Demand Rating, Subscriptions, Up-sell