Why Pricing Strategy for Market Leaders is a Long-Term Game: Lessons from OpenAI and ChatGPT

When aiming to be the market leader in your category, pricing isn’t just a tactic—it’s a strategic cornerstone. Pricing defines your market positioning, attracts the right customers, and ensures profitability for sustained innovation. Yet, many companies overlook this crucial element, focusing on the here and now instead of planning for the years ahead. If you’re not thinking about pricing well into the future, you’re already falling behind.

 

A prime example of a market leader that understands this dynamic is OpenAI, the organization behind ChatGPT. OpenAI isn’t just building AI technology; it’s actively evolving its pricing strategy for both consumers and enterprises. Here’s what we can learn from their forward-thinking approach.

1. Strategizing Future Consumer Pricing

OpenAI’s pricing strategy is evolving rapidly, and the company isn’t shy about its long-term plans for its consumer product, ChatGPT.

 

Recent reports suggest that ChatGPT’s premium plans might reach up to $200 per month in the coming years. While this figure may seem staggering, it reflects OpenAI’s confidence in the value its advanced AI tools will offer to individual users by then. As Tibor Benke pointed out on Twitter, OpenAI is strategically preparing for a future where its technology is so indispensable that consumers will pay significantly more to access cutting-edge reasoning models and new capabilities.

 

Moreover, OpenAI has already begun small, incremental increases. For instance, ChatGPT’s current Pro plan is set to rise from $20 to $22 monthly by the end of the year, with further increases planned over the next five years, eventually hitting $44 monthly, according to The New York Times. These small adjustments pave the way for larger changes, conditioning users to the idea of premium pricing while still providing value.

2. Enterprise Pricing: Scaling for Big Business Needs

It’s not just individual users who will see pricing changes. OpenAI is taking a decisive step into enterprise territory with plans to roll out premium offerings at $2,000 per month or more, as reported by Yahoo Finance.

 

This move signals a clear understanding of market segmentation. Enterprises demand higher-tiered services—think robust API integrations, enhanced security, and tailored solutions. By creating a high-value pricing tier, OpenAI positions itself as a critical partner for businesses that rely on AI-driven insights, automation, and innovation.

 

The $2,000 pricing reflects the immense value and ROI enterprises stand to gain. Market leaders like OpenAI understand that pricing isn’t just about cost—it’s about aligning price with the perceived and delivered value to customers.

 

3. Why Future Pricing Strategy Matters for Market Leaders

OpenAI’s pricing evolution illustrates a vital lesson: market leaders don’t wait for the future to happen—they design it. Strategic pricing decisions today will determine how well-positioned a company is in five or ten years. Here’s why this matters:

  • Customer Conditioning: Incremental price increases condition customers to expect higher pricing in exchange for more value. This prevents sticker shock and ensures smoother adoption of premium plans.
  • Innovation Funding: Higher prices provide the revenue needed to invest in cutting-edge features, enabling companies to maintain a competitive edge.
  • Market Positioning: Premium pricing reinforces a brand’s image as the best in its class, attracting high-value customers who demand and appreciate the best.

Adaptability: Pricing agility ensures a company can adjust to market trends, competition, and economic shifts without compromising profitability.

Key Takeaways for Businesses

Whether you’re running a startup or managing an established brand, OpenAI’s approach underscores the importance of thinking ahead. Here are actionable steps for refining your pricing strategy:

 

  1. Start Early: Plan your pricing roadmap for at least 3-5 years. Identify the value milestones your product will achieve and adjust pricing accordingly.
  2. Segment Strategically: Create pricing tiers for different customer segments (e.g., consumers vs. enterprises). Ensure each tier delivers appropriate value.
  3. Communicate Transparently: Help customers understand why price increases are happening by tying them to specific improvements or features.
  4. Invest in Value: Continuously innovate to justify price increases. Customers will pay more if they perceive increasing value in your product.
  5. Test and Iterate: Use pricing experiments to gauge willingness to pay and refine your strategy based on real-world data.

 

OpenAI’s commitment to long-term pricing strategy is a masterclass in how market leaders think beyond today’s trends. By forecasting needs, segmenting markets, and aligning pricing with value, OpenAI is securing its position as an AI powerhouse. If you aspire to lead your category, take note: the time to plan your pricing strategy for the next decade is now.

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Breaking Down Pricing Power: How Netflix Flexes Its Market Muscle

Netflix’s recent price hikes highlight its ability to command pricing power, even in a competitive and saturated streaming landscape. With increases in its U.S. subscription tiers—the ad-supported plan now costs $7.99/month, while the premium plan jumps to $24.99/month—Netflix underscores its strategic edge and market dominance. But what drives pricing power, and what does this mean for the streaming industry?

What Is Pricing Power?

Pricing power refers to a company’s ability to raise prices without significantly impacting demand for its products or services. This strength is typically rooted in several factors:

  • Brand Strength: A recognizable and trusted brand fosters customer loyalty.
  • Unique Offerings: Products or services that competitors struggle to replicate.
  • Market Leadership: Dominance in a particular sector or niche.
  • Customer Stickiness: The ability to create habits or dependencies among users.

Companies with robust pricing power not only drive profitability but also set industry benchmarks, influencing competitors’ strategies.

Drivers of Netflix’s Pricing Power

  1. Exclusive and Diverse Content: Netflix’s blockbuster original series, such as Stranger Things and Squid Game, ensure that its library stands out, offering content that no other platform can replicate. This exclusive content drives subscriber acquisition and retention.
  2. Market Leadership: With over 300 million subscribers globally, Netflix’s expansive reach, coupled with its well-established brand, secures its role as a streaming giant.
  3. Consumer Loyalty: By consistently delivering high-quality entertainment, Netflix creates a loyal user base. Subscribers are more likely to accept price hikes, recognizing the value they derive from the platform.
  4. Ad-Supported Growth: The company’s recent success in monetizing its ad-supported tier further reinforces its ability to diversify revenue streams, offsetting risks of churn in premium tiers.

 

The Ripple Effect on the Streaming Market

Netflix’s pricing power extends beyond its own business, impacting the broader streaming industry in several ways:

  • Competitive Benchmarking: As Netflix raises its prices, competitors like Disney+ and Max are likely to follow suit. Netflix’s moves set a psychological pricing standard for premium content in the market.
  • Increased Revenue for Content Investment: Higher subscription fees enable Netflix to pour more resources into creating high-quality original programming and expanding into global markets.
  • Stock Market Signals: Investors interpret Netflix’s price hikes and the minimal subscriber churn as a strong sign of profitability and pricing flexibility. This can elevate stock performance and influence investor expectations across the industry.

The Future of Pricing Power in the Streaming Industry

The streaming industry is entering a pivotal phase where pricing power will become a cornerstone of profitability. Companies with premium positioning and unique offerings will thrive, while weaker players may struggle to compete as margins tighten.

Key trends to watch include:

  • Consolidation: As smaller platforms face financial pressures, mergers and acquisitions may create fewer, more powerful players with enhanced pricing power.
  • Personalized Pricing Models: Platforms may adopt tiered or region-specific pricing to maximize value capture across diverse consumer segments.
  • Ad-Supported Strategies: Free or low-cost tiers supported by ads will play an increasing role, allowing platforms to monetize non-premium users.

For Netflix, continued success hinges on staying ahead in content innovation, global expansion, and subscriber loyalty. The company’s latest price hike signals not just confidence in its value proposition but also a broader trend toward the premiumization of streaming services.

 

 

In this rapidly evolving landscape, pricing power will determine the winners—and Netflix appears poised to remain at the top.

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Our Predictions for 2025: Pricing and Growth Trends to Watch

As we step into 2025, the business landscape continues to evolve rapidly, shaped by emerging technologies, shifting consumer expectations, and global challenges. For businesses looking to gain an edge, a robust pricing and growth strategy is critical. To inspire your strategy for the year ahead, we’ve identified six key predictions that will define the pricing and growth playbook for 2025.

1. The Growth of the Trust-Based Economy

Artificial intelligence (AI) has revolutionized how businesses operate, equipping them with powerful tools and unprecedented access to data. However, the rapid adoption of AI has also surfaced challenges: inconsistent and, at times, incorrect information has led to poor decision-making and the commodification of ideas. In this context, trust is emerging as a key differentiator.

In 2025, businesses and creators will invest heavily in building brands and tools that explicitly foster trust among customers. These companies that prioritize trust will command higher willingness-to-pay from consumers. This shift will solidify trust as the cornerstone of competitive advantage in the digital age.

2. Purpose-Driven Pricing Will Gain Momentum

In an increasingly values-driven market, customers are looking to support businesses that align with their social, environmental, and ethical beliefs. Purpose-driven pricing—aligning pricing strategies with a company’s mission and social impact goals—will resonate more deeply with these consumers.

For example, companies that tie their pricing to sustainability initiatives, community support, or social causes will not only differentiate themselves but also foster stronger emotional connections with their customers. In 2025, expect to see more businesses embracing this approach to stand out in competitive markets and create lasting loyalty.

 

3. The Evolution of Subscription Models

Subscription-based pricing has dominated many industries over the past decade, but consumer demands are shifting. Customers are increasingly aware of how subscriptions (and cancellations) work and are seeking flexibility, wanting the convenience of subscriptions without long-term commitment. In response, hybrid subscription models—blending one-time purchases with recurring plans—will gain traction.

Businesses that offer personalized subscription options or let customers pay-as-they-go will see increased adoption and reduced churn. This evolution in subscription pricing will empower companies to better meet customer needs while retaining steady revenue streams.

4. Pricing Power as a Driver of Sustainability

The economic climate in 2025 will remain challenging, with tighter access to funding and increased pressure on financial performance. IPOs and exits will remain slow, and so businesses at all stages will need to run for longer time horizons. 

Businesses that focus on building pricing power—creating a perceived value for which customers are willing to pay a premium—will gain a significant competitive edge.

By investing in strong brand equity, exceptional products, and tailored customer experiences, companies can establish pricing strategies that drive financial sustainability. For investors, these businesses will stand out as low-risk, high-potential opportunities in an uncertain market.

5. The Boom of Dynamic Pricing for SMBs

Dynamic pricing, once reserved for large corporations with extensive resources, is now accessible to small and medium-sized businesses (SMBs) thanks to automation and AI tools. In 2025, SMBs will adopt dynamic pricing strategies at scale, enabling them to stay competitive in fast-changing markets.

Whether it’s adjusting prices in real-time based on demand, competitor activity, or inventory levels, dynamic pricing will empower SMBs to maximize revenue while maintaining customer satisfaction. This democratization of advanced pricing strategies will level the playing field for businesses of all sizes.

 

6. Customer Experience will Outweigh Discounts

As markets become more saturated, the race to the bottom through discount wars will lose its appeal. Instead, exceptional customer experiences will become the most powerful growth lever for businesses in 2025.

Customers are willing to pay more for businesses that prioritize their needs, deliver seamless interactions, and go the extra mile to create value. Companies that invest in customer service, personalization, and innovative touch points will stand out, shifting the focus from price to value.

Final Thoughts: 2025 Is the Year to Innovate

The trends shaping pricing and growth strategies in 2025 underscore a common theme: customers are seeking value beyond price. Whether it’s trust, purpose, flexibility, or exceptional experiences, businesses that prioritize these elements will thrive in the coming year. By staying ahead of these trends and aligning with evolving customer expectations, you can set your business up for sustainable success in 2025 and beyond.

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Navigating the Costs and Benefits of NYC’s Congestion Pricing Plan

New York City is on the brink of a major transformation in how it manages traffic, sustainability, and urban planning. With the MTA board’s recent approval of the congestion pricing plan, the city is set to become the first in the United States to implement such a program. This initiative aims to reduce traffic in Manhattan’s busiest areas while generating funds for critical public transit improvements.

As the plan progresses toward implementation, it’s worth exploring the pricing structure and the potential impacts this policy may have on the city, its commuters, and its economy.

What Is NYC Congestion Pricing?

Congestion pricing is a strategy to charge vehicles entering designated high-traffic zones. In NYC, the focus is Manhattan south of 60th Street. The goal is twofold:

  1. Reduce traffic congestion by disincentivizing unnecessary trips during peak hours.
  2. Fund public transportation projects, particularly for the MTA, which oversees subways, buses, and commuter rail systems.

Pricing Structure: How Much Will It Cost?

The exact toll amounts are not finalized, but current proposals suggest fees could range between $9 and $23 per trip for passenger vehicles and higher rates for trucks. The pricing is dynamic, potentially varying based on:

  • Time of Day: Higher rates during peak hours to deter commuters.
  • Vehicle Type: Larger vehicles like trucks and commercial fleets may face higher tolls.
  • Exemptions and Discounts: Emergency vehicles and those transporting people with disabilities are likely to receive exemptions or reduced rates.

These fees will be charged via an electronic tolling system, ensuring a seamless experience without physical toll booths.

 

The Financial Impact on Commuters and Businesses

For many, the pricing raises concerns about affordability and equity.

  • For Commuters:
    • Drivers: Regular drivers entering Manhattan could see significant increases in their commuting costs, especially if no alternative routes or modes of transportation are viable.
    • Public Transit Users: Ideally, the toll revenue will lead to improvements in subway and bus systems, making public transit a more attractive option. However, the timeline for these improvements may lag behind the toll implementation.
  • For Businesses:
    • Delivery and Logistics Companies: These businesses may face higher operational costs, which could trickle down to consumers in the form of price increases for goods and services.
    • Small Businesses: Some small business owners worry that the tolls might deter customers from visiting Manhattan, especially those who rely on car travel.

Benefits: A Greener, Less Congested NYC

Despite the costs, the congestion pricing plan offers several potential benefits:

  1. Reduced Traffic Congestion: Similar programs in cities like London and Singapore have shown significant reductions in traffic. For NYC, this could mean less time spent idling and a smoother flow of goods and services.
  2. Environmental Impact: Fewer vehicles on the road mean reduced emissions, contributing to cleaner air and aligning with NYC’s sustainability goals.
  3. Public Transit Funding: Revenue from the tolls is projected to generate $1 billion annually, which the MTA plans to use as leverage to secure $15 billion in bonds for infrastructure upgrades. This funding could improve reliability, expand capacity, and modernize the aging transit system.
  4. Quality of Life: Less congestion and pollution could make Manhattan a more livable and attractive destination for residents, workers, and tourists.

Potential Challenges and Criticisms

  1. Equity Concerns:
    Low-income drivers who rely on their vehicles for work may bear the brunt of the costs. Advocates are pushing for discounts or exemptions to address this imbalance.
  2. Economic Ripple Effects:
    Businesses and commuters outside Manhattan may feel disproportionately impacted. Policymakers need to ensure that the benefits of reduced congestion outweigh these potential economic drawbacks.
  3. Implementation and Enforcement: Setting up the tolling infrastructure and ensuring compliance will require significant investment and coordination. Missteps could delay benefits or reduce public trust in the program.

Conclusion: A Bold Step with High Stakes

NYC’s congestion pricing plan is a bold initiative that could redefine urban mobility in the United States. While the pricing strategy will undoubtedly pose challenges for commuters and businesses, the potential long-term benefits—less traffic, a cleaner environment, and improved public transit—offer a compelling case for the program.

The key to success lies in balancing the costs and benefits. Clear communication, equitable policies, and timely investment in public transit improvements will be essential to ensure that the plan delivers on its promise of a better, more sustainable NYC.

As implementation unfolds, the city will serve as a case study for other urban centers grappling with similar congestion and sustainability challenges. Whether congestion pricing becomes a transformative success or a cautionary tale depends on how well NYC manages this complex but necessary transition.

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HelloAdvisr’s Year in Review 2024

What an amazing year! We want to acknowledge the progress made towards the long-term missions of HelloAdvisr. Here’s a look at our highlights, our celebrations, and achievements across 2024. 

 

What’s Next? 

There is a familiar excitement with the coming of 2025. New opportunities–and new challenges–await us in the new year. However, some things never change, like HelloAdvisr’s priority to empower companies through pricing and value creation. The journey may look different every year, but we find that we still thrive in the process. 

We are thrilled to reveal what we’ve got in store for 2025. Join us as we continue to support amazing companies, innovations, and technology to multiply their growth, and see how companies are constantly changing the game.

Are you ready to get started?

 

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Why Pricing Is a Cross-Functional Challenge

Unlike most business decisions, pricing impacts and involves nearly every team in your organization. From executives to marketing, sales, product, finance, operations, and customer success, each function plays a role in defining and delivering value to customers—and they all have a stake in the pricing process.

Here’s why it gets complicated:

  • Marketing focuses on competitive positioning and branding, often prioritizing how pricing reflects your market stance.
  • Sales wants pricing flexibility to close deals and hit revenue targets.
  • Product cares about pricing as a reflection of the value delivered by features and innovation.
  • Finance zeroes in on margins and profitability, ensuring the numbers align with business goals.
  • Customer Success emphasizes retention, advocating for pricing that ensures long-term customer satisfaction.
  • Operations looks at pricing through the lens of scalability and efficiency, ensuring processes are streamlined.

In global companies, this complexity grows exponentially with input from local market teams who understand regional dynamics and customer expectations.

This diversity of perspectives makes pricing inherently cross-functional—and inherently contentious. Everyone brings different priorities, insights, and assumptions to the table.

The Tension: Why Opinions on Pricing Rarely Align

Because pricing touches so many areas of the business, it’s no surprise that opinions about pricing decisions often diverge. Here’s why alignment is so difficult:

  1. Different Priorities: Each team has its own goals. For example, sales may push for discounts to close deals quickly, while finance resists those discounts to protect margins.
  2. Fragmented Data: Teams rely on different data points to form their opinions. Marketing may cite competitor pricing, while finance refers to cost structures, and product teams highlight feature value.
  3. Emotional Stakes: Pricing can evoke strong emotional responses because it feels personal. It represents the value of your work and your product, and disagreements can quickly escalate.

This dynamic makes pricing not only a business decision but a litmus test of your company’s ability to collaborate effectively across departments.

Where Many Companies Struggle: The Trap of “Lazy Pricing”

In the face of complexity, many companies fall into the trap of “lazy pricing.” This approach is often characterized by:

  • Defaulting to the easiest option: Following competitors’ pricing or applying a flat percentage increase without deeper analysis.
  • Deferring the decision: Choosing something “low lift” with the promise of revisiting it later.
  • Relying on short-term fixes: Resorting to discounting or promotions to patch up sales gaps.

The problem with lazy pricing is that “later” rarely happens. Like skipping the gym with the intention of starting next week, revisiting pricing often gets deprioritized. The result is a patchwork of decisions that undermine long-term growth.

When pricing isn’t given the strategic focus it deserves, it leads to:

  • Missed revenue opportunities: Pricing too low leaves money on the table, while pricing too high can deter potential customers.
  • Erosion of customer trust: Inconsistent or unclear pricing signals a lack of confidence in your value proposition.

Internal frustration: Teams feel misaligned, leading to friction and inefficiency.

 

The Fitness Analogy: Why Pricing Needs Discipline

Think of pricing like fitness. To achieve meaningful results, you need a consistent routine, clear goals, and a commitment to long-term progress. Skipping workouts and relying on crash diets might seem convenient, but they rarely deliver sustainable results.

Similarly, sustainable pricing requires:

  • Clarity of strategy: Know what you want to achieve and how pricing supports those goals.
  • Discipline in execution: Stay committed to your pricing framework and avoid knee-jerk reactions.
  • Cross-functional alignment: Ensure every team understands and supports the strategy.

When pricing is treated as a discipline, it becomes a lever for growth and a signal of organizational strength.

How to Build a Strong Pricing Organization

So how do you move beyond lazy pricing and create a robust, strategic pricing process? Here are some best practices:

1. Align Around a Clear Pricing Strategy

Start by defining your pricing strategy. Is your goal to maximize revenue, penetrate the market, or signal premium value? Your strategy should align with your broader business goals and provide a clear framework for decision-making.

2. Establish Cross-Functional Ownership

Pricing shouldn’t live in a silo. Create a cross-functional pricing committee with representatives from key teams. This group should own the process, ensure alignment, and resolve conflicts when they arise.

3. Use Data to Drive Decisions

Pricing is part art, part science. Invest in tools and analytics to gather data on customer behavior, willingness to pay, competitive benchmarks, and cost structures. Use this data to inform decisions and minimize subjective bias.

4. Communicate Pricing Decisions Clearly

Once decisions are made, communicate them effectively to all teams. Transparency is key to building trust and ensuring consistent execution across the organization.

5. Iterate, but Don’t Procrastinate

Pricing is not a “set it and forget it” activity, but neither should it be an endless cycle of changes. Build in regular review cycles to revisit and refine your pricing strategy based on market dynamics and performance data.

Ask Yourself: How Does Your Company Measure Up?

Pricing is not just about numbers; it’s a reflection of your organization’s ability to collaborate, align, and execute. So, here’s the question: How would you rate your company’s pricing process?

  • Is it structured and strategic, or reactive and fragmented?
  • Do teams feel empowered and aligned, or are they stuck in debates and misalignment?
  • Are you proactively driving long-term results, or relying on short-term fixes?

If pricing feels like an ongoing struggle, you’re not alone. Many companies wrestle with these challenges. But the good news is that pricing is a skill you can develop—through clarity, discipline, and cross-functional collaboration.

Conclusion: Pricing as a Lever for Growth

Done well, pricing is not just a business decision; it’s a competitive advantage. It signals your value to customers, aligns your teams around shared goals, and drives sustainable growth.

But pricing success doesn’t happen by accident. It requires intentionality, collaboration, and a commitment to treating pricing as a strategic discipline.

So, what’s your next step? Evaluate your pricing process, engage your teams, and start building a foundation for long-term success.

I’d love to hear your experiences. How has your team approached pricing? What challenges have you faced, and what solutions have worked?

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Navigating the FTC’s ‘Click to Cancel’ Rule: What Every Subscription Business Needs to Know

With rising concerns about subscription cancellation barriers, the Federal Trade Commission (FTC) has introduced a “Click to Cancel” rule, requiring companies with subscription models to simplify their cancellation processes. In this article, we’ll cover what the rule entails, its background, and practical steps for compliance.

What is the “Click to Cancel” Rule?

The “Click to Cancel” rule requires companies to provide an easy, online option for canceling subscriptions—mirroring the simplicity of the sign-up process. Under the rule, consumers can opt out of subscriptions via an accessible, one-click option. Additionally, businesses must secure clear consent before charging for memberships or free-to-paid trial conversions.

Here, subscription services refer to recurring payment arrangements for goods or services, such as streaming platforms, gym memberships, and product subscriptions. These models rely on “negative option” features, where a customer’s inaction (e.g., not canceling) leads to continued charges.

More specifically, the FTC’s new rule enforces several key requirements:

  • Clear and Accessible Information: Companies must provide truthful, visible information about subscription terms, renewal conditions, and pricing so consumers know exactly what they’re agreeing to.
  • Consent Confirmation: Businesses must ensure that consumers fully understand their agreement before being charged and should maintain records of customer consent.
  • Symmetric Cancellation Process: Cancellation must be as easy as sign-up, with companies offering the same channels. If customers sign up online, they must be able to cancel online; if they sign up in person, cancellation can also be done over the phone or online.
  • Penalties for Non-Compliance: Companies that violate these terms risk penalties, including consumer redress and civil penalties for misleading or obstructing consumers.

Why Was This Rule Created? 

The rule was introduced after numerous consumer complaints about the difficulty of unsubscribing. Many businesses have complex cancellation processes that make it easy to subscribe but challenging to leave. By establishing this rule, the FTC seeks to protect consumers from misleading practices that create obstacles to ending subscriptions.

The core issue is the accessibility and transparency of cancellation options. For years, companies have implemented barriers like hidden steps, live-agent requirements, and unresponsive online portals to retain customers. The “Click to Cancel” rule tackles these barriers by mandating streamlined processes.

So, this rule should help FTC get money back to people who are misled and address common problems that include: (1) Sellers who don’t tell the truth or leave out necessary information (2) People who get billed when they didn’t agree to pay (3) Sellers who make it hard (or impossible) to cancel.

What This Means for B2B and B2C Subscription Companies

This rule impacts both B2B and B2C companies that use subscriptions in their business model by demanding transparent subscription renewal terms and simplified cancellation options. B2B companies offering SaaS platforms and B2C companies running membership programs must now make their cancellation methods as user-friendly as their sign-up processes.

How Companies can Comply and Prepare

For companies to comply with the new rule, they should consider the following:

  1. Implement Simple Cancellation: Introduce a single-click cancellation option, ensuring customers can cancel as easily as they signed up.
  2. Clarify Subscription Terms: Make subscription terms and renewal conditions clear and accessible, especially on sign-up pages.
  3. Update Customer Support Protocols: Train customer service teams on the rule’s requirements, focusing on providing fast, compliant cancellation options.
  4. Audit Internal Systems: Ensure your billing and CRM systems support the new rule by instantly stopping charges upon cancellation.

To maintain compliance while retaining customers and gaining valuable insights, companies should consider:

  1. Loss Aversion Offers: Non-intrusive retention offers on cancellation pages allow customers to reconsider without impacting compliance.
  2. Feedback Surveys: Optional, brief surveys on cancellation pages provide insights into customer churn without creating roadblocks.
  3. Engagement Follow-Ups: After cancellation, send follow-up emails to gather more detailed feedback and encourage former customers to share their experiences.
  4. Data Analytics: Use analytics tools to monitor user behavior and identify patterns leading to cancellations, allowing for proactive adjustments to the service or communication strategy.
  5. Customer Education: Provide resources that explain subscription benefits and usage tips, which may reduce cancellations by enhancing customer value perception.

What Opportunities Do the New Rules Create?

The FTC’s “Click to Cancel” rule, while adding compliance requirements, offers subscription businesses valuable opportunities to enhance their competitive edge, build stronger customer relationships, and refine pricing strategies. 

Here’s how your business can turn these new rules into strategic advantages:

  1. Enhance Your Competitive Positioning: In the past, a cumbersome cancellation process may have masked a lower willingness-to-pay or revealed gaps in pricing power. With the new FTC rules requiring more straightforward cancellation, subscription businesses can no longer rely on friction-filled processes to retain customers. Instead, this shift enables you to improve your competitive positioning by providing a transparent, customer-first experience.
  2. Build Stronger Relationships with Your Customers: With easier cancellation options, your customer retention will now depend even more on the actual value your service delivers. Use this as an opportunity to better understand what drives value for your customers—what keeps them satisfied, what increases their willingness-to-pay, and what boosts long-term retention. A proactive approach here allows you to adapt more effectively, creating offerings that align more closely with customer expectations and needs.
  3. Re-evaluate Your Pricing and Packaging: What worked in the past may no longer meet the evolving demands of subscription customers, who now know more and demand more. The new rule changes provide an ideal moment to revisit your pricing and packaging to ensure they reflect the value your product provides. Consider whether your current subscription tiers, pricing, or feature sets still align with customer expectations or whether adjustments could better highlight your value. 

Final Thoughts

As the FTC enforces its “Click to Cancel” rule, B2B and B2C subscription companies must align with its standards to maintain compliance and customer trust. By updating processes, simplifying cancellations, and clearly communicating subscription terms, companies can adapt to this shift towards consumer-friendly practices.

For further details, refer to the FTC release here.

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LA Tech Week 2024 Highlights: What’s Next for the Tech Ecosystem

LA Tech Week 2024 brought together a dynamic blend of creators, innovators, and leaders, offering a platform that amplifies voices and ventures often overlooked in the broader tech ecosystem. This year’s event celebrated the builders behind groundbreaking products, spotlighting underrepresented communities and highlighting how diverse contributions are shaping the future of technology. Organizations like LaFamilia, Slauson, Grid110, and PledgeLA were at the forefront, investing in these communities and driving change. The week also paid homage to creators leading new economies through content production, showing the vast reach of their influence in pushing innovation forward.

price-design challenges. 

 

A standout theme was how LA Tech Week celebrated entrepreneurial spirit across a vibrant ecosystem of innovators whose efforts may not always make headlines but are undeniably impactful. The excitement around this momentum was palpable, leaving attendees eager to witness what comes next for these voices and ventures.

 

For our first-time attendees, LA Tech Week was an immersive introduction to a community dedicated to fostering startup support and new ideas. Beyond the thrumming energy of innovation, unique experiences—like a morning yoga session—helped attendees connect on a deeper level. The blend of professionalism and personality throughout the week highlighted what makes Los Angeles such a unique hub for tech innovation.

 

One event that stood out was the “Innovators Connect: Founders, Executives, and Leaders Mixer”, hosted by Plug and Play and 2045. This event blended knowledge-sharing with personal stories of entrepreneurial resilience. The panel of trailblazing founders offered not only practical advice on securing investors and building teams but also shared their own experiences, emphasizing that no lesson is easily learned the first time. Their willingness to be vulnerable underscored the importance of perseverance in the startup world.

 

AI and cybersecurity were hot topics throughout the week, with a key event being “Early Stage Growth: Mastering Product, Sales, and Execution…Putting AI and Cyber in Context,” hosted by Bear Capital, Binarly, and CIQ. Moderated by Ryan Naraine of Security Conversations, the discussion centered around the necessity of agility in an ever-changing tech landscape. Startups were encouraged to focus on long-term goals, aiming to become industry leaders rather than acquisition targets. The message that “knowledge is a competitive edge” was especially relevant, stressing the importance of mastering one’s domain in any industry—whether it’s AI, cybersecurity, or other cutting-edge fields.

 

Some events also highlighted diversity and inclusion, particularly during the “Female Founder Showcase LA,” where groundbreaking startups led by women were highlighted. This event showcased the crucial role diversity plays in entrepreneurship and innovation, reflecting a broader societal shift toward inclusive growth in the tech world. The importance of community-driven solutions and sustainability initiatives emerged as significant trends, demonstrating tech’s increasing responsibility in shaping a better future.

 

Throughout the week, it became clear that LA Tech Week is not just about technological advancements, but about the ecosystem driving them. From AI to sustainability, from underrepresented founders to seasoned entrepreneurs, the key takeaway from LA Tech Week 2024 was that the future of tech is diverse, community-driven, and powered by a shared commitment to resilience, innovation, and adaptability. The insights gained and connections made this year will undoubtedly help shape the direction of tech not just in Los Angeles, but globally.

 

 

 

Finally, we had an incredible experience actually hosting “The Price is Right” game night during LA Tech Week 2024! Bringing together founders, CxOs, and innovators from across the tech space, we created an interactive environment where participants dove into the intricacies of AI product pricing—through fun, collaborative, price-design challenges. 

 

 

 

 

The energy was electric as attendees strategized and shared ideas, all while gaining valuable insights they could bring back to their businesses. The event was more than just games; it was a unique opportunity to explore modern pricing strategies in a playful yet tactical way, inspiring everyone to rethink the power of pricing for their products and services. We’re excited to continue these meaningful conversations and build lasting connections!

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