WEBVTT 00:00:11.886 --> 00:00:16.391 So the Choice Game is all about lining up the offers that you 00:00:16.391 --> 00:00:20.812 have as a company with different customer segments' demands. 00:00:21.563 --> 00:00:25.066 And so we can think about industries like SAS, SAS 00:00:25.066 --> 00:00:28.278 software, any kind of subscription. Your video 00:00:28.278 --> 00:00:32.157 subscription services or music subscription services are 00:00:32.157 --> 00:00:36.244 perfect examples of a Choice Game where they may have a low 00:00:36.244 --> 00:00:39.205 tier that is advertising-supported and low 00:00:39.205 --> 00:00:43.710 price, a medium tier that has no ads, and then a higher tier that 00:00:43.710 --> 00:00:45.003 has higher quality. 00:00:45.003 --> 00:00:49.966 The key in the Choice Game is to define your product packages 00:00:49.966 --> 00:00:54.971 such that they line up to customers' needs, customers' desires. 00:00:54.971 --> 00:00:58.058 The Choice Game has a number of pricing models and strategies 00:00:58.058 --> 00:00:58.808 that we employ. 00:01:00.060 --> 00:01:02.896 The most common that people are familiar with generally is good, 00:01:02.896 --> 00:01:03.480 better, best. 00:01:03.938 --> 00:01:06.858 So the idea of of having a lineup of low price, medium 00:01:06.858 --> 00:01:09.778 price, high price, but there are other varieties too. 00:01:09.986 --> 00:01:12.739 We'll use what we call base plus add-ons. 00:01:12.906 --> 00:01:15.658 Every customer has to buy the base but then they have a choice 00:01:15.658 --> 00:01:18.286 of different add-ons that have different characteristics or 00:01:18.286 --> 00:01:19.287 different capabilities. 00:01:19.412 --> 00:01:22.373 We have flavors where which are packages that are aligned to 00:01:22.373 --> 00:01:23.792 different kinds of customers. 00:01:25.085 --> 00:01:28.379 A literal example of flavors would be if you're subscribed to 00:01:28.379 --> 00:01:31.299 one of these meal delivery services, they might have a 00:01:31.299 --> 00:01:34.552 vegetarian flavor and a keto flavor and a meat lovers flavor. 00:01:34.844 --> 00:01:38.014 But in software, you'll often see flavors that are aligned 00:01:38.014 --> 00:01:40.475 against different kinds of industry segments. 00:01:41.184 --> 00:01:44.145 And then we have what we call T-shirt sizing. 00:01:44.604 --> 00:01:46.564 So small, medium, large, extra large. 00:01:47.065 --> 00:01:50.318 And this is used often when you have something that you're 00:01:50.318 --> 00:01:53.780 consuming and where you want to essentially have an easy way to 00:01:53.780 --> 00:01:56.783 size the offering to a customer's needs without having 00:01:56.783 --> 00:01:59.452 to precisely know how much they're going to buy. 00:01:59.702 --> 00:02:00.411 Another strategy we use in the Choice Game is land and expand. 00:02:00.411 --> 00:02:01.121 Another strategy we use in the Choice Game is land and expand. 00:02:01.121 --> 00:02:02.539 Another strategy we use in the Choice Game is land and expand. 00:02:04.332 --> 00:02:08.628 Companies will look at ways to bring customers in in a very 00:02:08.628 --> 00:02:09.838 frictionless way. 00:02:09.838 --> 00:02:10.755 That's the land. 00:02:11.131 --> 00:02:14.134 And then expand how much they're spending with them over time. 00:02:14.467 --> 00:02:18.304 Examples of land motions can be free trial or limited time trial 00:02:18.304 --> 00:02:21.933 or freemium products where the product is not as capable as a 00:02:21.933 --> 00:02:25.353 full blown product but is available for free forever with 00:02:25.353 --> 00:02:28.731 the idea that customers will upgrade to the full-featured 00:02:28.731 --> 00:02:29.190 product. 00:02:29.732 --> 00:02:33.319 Once you have a customer in house, there are four levers for 00:02:33.319 --> 00:02:35.196 expanding annual price increase, 00:02:36.030 --> 00:02:36.865 cross sell-- 00:02:36.948 --> 00:02:41.161 that is selling other products out of your catalogue, upsell, 00:02:41.161 --> 00:02:45.123 moving them from one tier to the next tier up, and volume 00:02:45.123 --> 00:02:47.083 expansion or usage expansion. 00:02:47.208 --> 00:02:50.128 When we're implementing the Choice Game, really looking to 00:02:50.128 --> 00:02:52.797 pull all of these levers so that we can maximize the 00:02:52.797 --> 00:02:54.299 profitability of the offering. 00:02:54.841 --> 00:02:57.218 So when using the Choice Game for pricing... 00:02:57.302 --> 00:03:01.055 and one of the key challenges often is getting the sales 00:03:01.055 --> 00:03:02.640 organization to buy in. 00:03:02.807 --> 00:03:06.895 Especially in software, where a company has had the sellers out 00:03:06.895 --> 00:03:11.065 creating packages a la carte for customers when they move then to 00:03:11.065 --> 00:03:14.903 a Choice Game where they only have a handful of of choices, 00:03:14.903 --> 00:03:17.697 sellers sometimes feel constrained by that. 00:03:17.947 --> 00:03:21.367 And so there's a challenge in getting the organization to 00:03:21.367 --> 00:03:25.079 understand how better to line up their different offerings with 00:03:25.079 --> 00:03:26.247 different customers. 00:03:26.539 --> 00:03:28.875 The critical thing for maintaining competitive 00:03:28.875 --> 00:03:32.462 advantage in the Choice Game is having truly differentiated offerings. 00:03:33.213 --> 00:03:36.424 Each of your offers needs to line up against the needs of a 00:03:36.424 --> 00:03:39.719 different customer segment and really provide value for that 00:03:39.719 --> 00:03:40.637 customer segment. 00:03:41.262 --> 00:03:45.266 What you're really trying to achieve is a high value package 00:03:45.266 --> 00:03:49.354 against your highest willingness to pay customers and a lower 00:03:49.354 --> 00:03:53.316 price package that satisfies the lesser needs of more price 00:03:53.316 --> 00:03:54.651 sensitive customers.