Product Manager Application: 

Jamie Evans

What is this document?

I wanted to be proactive. Having spent a lot of time researching Paddle and also discussing it with Mike during the previous interview stage - it got me thinking about the potential for the Subscription product and the most vital (and intriguing) features that may be on the pathway. The process led me to make large assumptions about the technical scope, customer problems, and the long term vision for the company, so take it all with a pinch of salt. The end goal was to give an extra dimension to Friday's interview if needed, whilst adding an insight into my thinking about what I'd enjoy building if given the opportunity at Paddle.

Below are 3 products and/or features that may be on the Paddle radar. They are directly related to the Subscription platform and focused on accelerating the Revenue Delivery model. I have outlined each feature, it's place with Paddle's vision, it's impact on customers, as well as any implementation constraints or value each respective one may offer.

Dynamic Pricing

 

What is it?

Paddle's dynamic pricing feature would scan previous and current demand for customers subscription prices, aggregate the demand for their service, pinpoint potential times of the year, or each month, whereby the price could be amended up or down manually, and then (with enough data) automate 1%-5%-10% fluctuations in their pricing offered to new (or existing customers). Our initial output would be to flag high revenue periods where the price may be too low for the demand, whilst also highlighting ebbs in demand that would suggest a lower price point to entice new customers onto the platform. The caveat remains that any customer already subscribed would have access to the "dynamic" price if requested (or automatically applied).

Dynamic pricing's key aim is to use large amounts of data to automate the optimisation of revenue into the company via subscriptions. Companies that are afraid of 'playing' with pricing too much, or don't have the man power to efficiently scan and pick out a correct price point manually, would be given the insight to at least understand they have room to better optimise.

 

This optimisation is focused on finding the balance for the cost:value of a given subscription. The cost:value ratio is the concept theory that customers are 'often' happy to pay more for subscription services (even with identical features) because with the greater initial monetary outlay, comes the supposedly higher proportionate returns that piece of SaaS gives them. What dynamic pricing offers is a way for Paddle customers to experiment with their prices (directed at a targeted group of their current or potential customers) to find the sweet-point - giving more 'real-time' information to optimise revenue delivery.

How does it fit Paddle's vision?

 

Vision: Remove barriers to seamless scaling and growth across new and existing markets

  • Efficient tool to help optimise pricing as scale and demand fluctuates through a start-up and scale-up cycle. 

  • Aggregates large amounts of data into an accessible and easy to action revenue optimisation. 

  • Flexible and agile feature that can be implemented to fit the variations in each customer's unique subscription model.

How does it help Paddle's customers?

 

Good for: Start-Ups, Scale-Ups

  • Paddle's customer's are growth companies often at varying crossroads when 'finding' the target price for their subscription model.

  • New Launches and start-ups need to be focused on revenue and experimentation. Dynamic pricing creates one less task.

  • We are able to scan data faster than any of our customers can and then suggest a price, or automatically optimise the price without them lifting a finger.

For example: Resume.io has (I assume) peak seasons within the year whereby they see greater demand for their service. Whether this is in early January or post financial year end in April, the opportunity to fluidly adjust their pricing could convert other slower months to revenue positive.

Alternatively, Iconosquare operates in a highly competitive market, with thousands of potential customers growing social exposure to the point where they need analytical tools. Dynamic pricing that fluctuates as this demand grows would help entice new customers, without impacting the customer experience of their current customer base (who may remain on their current subscription price).

Implementation

 

Constraints:

  • "How automated" can we go? Customers may have concerns about the aggressiveness of pricing changes.

  • Securely analysing multiple streams of payment data from a diverse range of customers on different pricing.

  • Are there P2P encryption challenges around changing, and then processing the subscription payments in real-time?

Value:

  • Adds a further layer of optimisation on top of the Paddle Project feature.

  • Allows Paddle to attract customers looking exclusively for experimentation integrated within their payments and checkout.

  • Actions a new layer of data for our customers, enhancing the relationship with them and increasing Paddle's 'moat' to the competition.

Paddle Project (Predict)

 

What is it?

Paddle aggregates our customers NDR value (and/or) the Dynamic Pricing feature to project the forward revenue progress of the customer. Initially, once enough legacy data has passed through the model, Paddle would display projections for year-to-year and quarter-to-quarter at their current revenue rate, considering how their net dollar retention percentages are growing. This can then be scaled into a more fluid projection when we integrate the dynamic pricing data - providing a projection for future revenue based on NDR and the small % changes that are made throughout the year to their subscription price.

The Project system is configurable by the customer and their needs. They are able to set how 'aggressive' the projections are, have the freedom to include more metrics (customer retention rate, marketing budgets adjustments, and various other data points), and eventually create visual graphs of future growth that can be downloaded and used during audit or compliance processes within their individual company.

How does it fit Paddle's vision?

 

Vision: Remove barriers to seamless scaling and growth across new and existing markets

  • Provides transparency to projections, with accurate up-to-date data, that can be tailored to their specific needs.

  • Once again it can aggregate large amounts of data into an accessible and easy to action revenue projection. 

  • Works across various price points, time frames, and currencies for each customer.

How does it help Paddle's customers?

 

Good for: New Launches, Start-Ups, Scale-Ups

  • Especially useful for New Launches and Start-Ups that need dynamic revenue projections when raising investment or closing new customers.

  • Customers scaling up their pricing need as much information as possible to leverage their decision making about long term strategy.

  • Provides them with a clear, positive feedback loop back to the impact Paddle is, and will have, on their company.

For example: Framer.io wanted to attract more enterprise customers to their subscription model. These enterprise customers can scale up hiring quickly (in this case UX and UI designers) and as such can create volatility in how much revenue their enterprise customers may produce in the future. By giving them the tools to automatically model their future revenue as their Enterprise customers add more staff and open new accounts, we again give them efficient access to key insights and data that may have taken the Framer team precious time to extrapolate.

Implementation

 

Constraints:

  • Do we need 6 months of live data to produce a projection? Or can we use legacy payment data from the DB?

  • This is not a guarantee of revenue delivery. Do we integrate a safety margin of 10% to manage customer expectations?

  • Do we factor in variations (such as tax rate fluctuations) for our customers?

Value:

  • Unique "post-revenue" value, that can help track future revenue delivery.

  • Another customer touchpoint that adds to the Paddle suite.

  • Increases the B2B moat by proactively turning customer data into more valuable insights.

Paddle Club

What is it?

The future of subscription commerce is creating communities of die hard users that want to pay consistently, subscribe longer, and build with the same SaaS platform constantly. Paddle Club is a simple tool that gives our B2B customers the ability to reward their subscription paying customers when they hit pre-set milestones. For Paddle's B2B customers that opt in to the club, we automatically edit the price for their customers when they reach 6/12/24 months being subscribed to the respective service. It's a basic loyalty and reward system that engages their customers and builds tribal brand loyalty, with Paddle at the heart of this relationship growth.

For Paddle, enabling these relationships between our B2B customers, and their B2C subscribers is another large step to extending the products moat. The process of 'upstream loyalty' is built around creating absolute value for our customers, by simply making their customers feel a deep affinity to the SaaS they are paying for.

How does it fit Paddle's vision?

 

Vision: Remove barriers to seamless scaling and growth across new and existing markets

  • B2B loyalty is built on our customers B2C loyalty. Loyalty scales. Rewards retain.

  • NDR is driven by customer retention. Making it easier to keep customers helps Paddle users focus on chasing down new markets.

How does it help Paddle's customers?

 

Good for: New Launches, Start-Ups, Scale-Ups

  • Seamlessly integrate loyalty as a key part of revenue delivery as Paddle's B2B customers grow.

  • New Launches need every advantage to keep early adopters. Offering financial incentive to join their journey could make a vital difference.

  • It adds another string to the all-in-one revenue delivery bow for customers. Again it's one less thing to worry about implementing from a 3rd party.

For example: Matamo already used Paddle to cut developer time implementing multiple external applications. The opportunity to entice current customers to stay on board automatically, making them part of the Matamo journey, all without a developer or customer success manager having to manually action any subscription plan changes.

Implementation

 

Constraints:

  • Any security issues updating individual customer's billing automatically?

  • Do we track 'time subscribed' as the total number of months or a string of months when reaching milestones?

Value:

  • Unique insight into the impact of 'price only' rewards vs customer experience based rewarding.

  • High value data that can be built into the NDR metrics.

  • Another touchpoint for the Paddle Customer Success team to upsell on our current B2B customers.

Why Cazoo

Firstly I love cars. Secondly and maybe more importantly, Cazoo is a place where I will be challenged. Big ideas are clearly encouraged and actioned and I envisage a space to learn everyday from people better than myself. As a company, Cazoo is leading the charge in seamless car buying - it's ongoing deep integrations with delivery, finance options and in my opinion sector leading marketplace allows people to take control of how they buy there prized car, giving more confidence in the finances and peace of mind in the cars reliability, to stay one step ahead of an ever more unstable economic outlook.

 

Furthermore, I am intrigued to see the wider product strategy as Cazoo looks to potentially add more social finance features - the tribal relationships between people and their cars is the future of connecting an end-to-end digital automotive economy, and I want to be on that frontier. The chance to align with the companies vision, push it and myself beyond boundaries is not only exciting but would be vital in a place to work, create and grow.