Win-Win Point-Pricing How To

Jessica Miller, Vice President of Services for PR 20/20, explains how her company, HubSpot's first agency partner, builds and implements services around HubSpot's marketing automation software. Focused on B2B clientele, the PR 20/20 team often serves as a full extension of a client's marketing team . . . and helps its clients "think through more than just marketing."

Jessica spoke at HubSpot's Inbound 2018 and covered the details of point pricing, where PR 20/20s clients are billed for services based on the assigned point value of that service rather than paying for the time it takes PR 2020 to deliver that service. This provides value for customers and ensures that customers do not pay for PR 2020's inefficiencies or learning. More complex, higher cost services are broken into smaller pieces, and the pricing structure is locked onto a Fibonacci sequence (1, 2, 3, 5, 8, 13 . . .) to minimize quibbling over point values.

Originally the company based the cost per point on the volume of services a company purchased . . . the more services purchased, the lower the cost per point The purpose was to incentivize buying a "better" package, but the reality was that it priced the "little guys" out of the market. Today, the company has a flat rate of $150 per point, regardless of whether a client purchases a Basic, a Moderate, or an Enterprise package. The "incentives" now come in the form of free enhanced services and more "hand holding" for the higher point cost service plans.

PR runs a number of interesting websites which may be helpful to companies and agencies.

• Jessica finds the potential for integrating AI into marketing to be fascinating. PR 20/20s The Marketing AI Institute (https://www.pr2020.com/story/marketing-artificial-intelligence-institute) strives to "educate modern marketers on the present and future potential of artificial intelligence, and connect them with AI-powered technologies that can drive marketing performance."
• On www.themarketingscore.com, a company can take a survey, and, using both subjective and performance aspects, determine the strength of its marketing program.
• Developed by Paul Roetzer, founder and CEO of PR 20/20 and author of The Marketing Agency Blueprint, The Marketing Agency Insider website (themarketingagencyinsider.com) provides marketing agencies with marketing agency news, information, resources, training, education and engagement.

Jessica can be reached on Twitter @jessica_joellen or on LinkedIn at jessicajoellenmiller/.