Price Testing Lessons From Adobe’s Creative Cloud SaaS

It’s a common problem for software giants that made their fortunes in the days of shrinkwrapped boxes — how do you adopt your business

It’s a common problem for software giants that made their fortunes in the days of shrinkwrapped boxes — how do you adopt your business model to today’s download-heavy market?Adobe seems to have found the solution with Creative Cloud, a SaaS-based bundle of their many design and production technologies, which they are now offering on a subscription basis.But subscription pricing can be tricky. Adobe was able to offer a price point of $50/month when it had the reliability of recurring revenue — a huge savings over the upfront costs for licensed software, which usually numbered in the thousands of dollars.But in a recent survey, 51% of 525 respondents said they would be more likely to purchase a subscription to Adobe’s Creative Cloud if the company dropped its price to $30/month.Which just goes to show you — consumers don’t necessarily pay the same price for services or products of equal value. There’s a perception battle that all subscription-based companies need to face. At the same time, an uptick in interest can offset any loss of revenues, if “consumer interest” converts into purchases. So savvy subscription execs know they need to optimize both pricing and sales to maximize revenues.For more on the intricacies of price testing for subscription sites, attend next Tuesday’s Webinar on Subscription Site Insider, where guest speaker Chris Oyolokor of Idea Incubator will show you when you should pursue more sales and when you should just raise prices.

Up Next

Register Now For Email Subscription News Updates!​

Search this site

You May Be Interested in:

Join us to master the latest subscription business strategies, from emerging payment trends