The FairPay Zone

FairPay: Adaptively Win-Win Customer Relationships -- Richard Reisman's blog (now a book) on win-win ways to reinvent business, resolve the revenue crisis for digital, and create more customer/vendor lifetime value for all. Seeking value-based, customer-first relationships. A one to one "invisible handshake" that brings commerce back to human values. A simple "risk-free subscription" that is far more win-win and efficient than flat-rate, all you can eat, for far more subscribers.

Tuesday, September 20, 2016

FairPay Book Just Published / Related LinkedIn Group

My book on FairPay was just published. It is part of a series on Service Systems and Innovations in Business and Society, curated by Jim Spohrer and Haluk Demirkan of The International Society of Service Innovation Professionals (ISSIP), and published by Business Expert Press (BEP).

Some extracts from early praise (as cited on the book page):

Anyone responsible for monetizing digital content in consumer markets should understand this radically new perspective on pricing and how to maximize customer lifetime value.

...an innovative and visionary methodology …what disruption could look like...

...groundbreaking...

...compelling …promises to transform business...

Highly recommended for digital business entrepreneurs, as well as established firms...

The full title is FairPay: Adaptively Win-Win Customer Relationships. It pulls together a wealth of material from the blog plus new additions. The book has sections that are very pragmatically focused on how FairPay works in specific industry use-cases (as an alternative or complement to conventional freemium subscriptions, paywalls, and other methods). It also addresses the conceptual foundations in marketing, behavioral economics, game theory, and related areas. It explains how FairPay can solve critical problems in pricing, value propositions, and customer relationships -- with a focus on the digital content and services businesses now in the throes of digital disruption, but also for other businesses.

I hope readers (both early followers and those new to these strategies) will find this not only a useful introduction to FairPay, but also a thought-provoking perspective on the broader issues of modern consumer commerce and how to make it far more win-win. As noted below, there is now a LinkedIn group dedicated to building on this theme.

Some of the new material in the book will be featured in added blog posts over the coming months.

Details on the book and how to get it are now online.

Order now from:

Business Expert Press
Amazon
ISSIP (member discount)

Online Supplement

As an added feature there is a special online supplement to the book with links to updates, blog posts with added detail, and other resources (also accessible as FPZLink.com). Even before you get the book, this can offer a preview of much of the content (but in less organized form).

LinkedIn Group for FairPay and related innovations -- Please join!

As part of the online supplement, there is now a LinkedIn Group called FairPay: Adaptively Win-Win Customer Relationship, to enable you to connect with others who share interest in FairPay and related innovations in participative co-pricing, relationship marketing, customer journeys, and behavioral economics - especially to maximize Customer Lifetime Value for digital services.

Background:

This is part of a collection curated by Jim Spohrer and Haluk Demirkan of The International Society of Service Innovation Professionals (ISSIP).

Business Expert Press is a leader in concise and applied learning resources, and partners with Harvard Business Publishing
ISSIP is an organization founded by IBM, Cisco, HP and several Universities with a mission to promote Service Innovation for our interconnected world.
Jim Spohrer is IBM Innovation Champion and Director of the IBM University Programs World Wide,
Haluk Demirkan is Professor of Service Science, Information Systems & Supply Chain Management, and the Founder & Executive Director of Center for Information Based Management at the Milgard School of Business, University of Washington (UW) -Tacoma

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John HardyJanuary 6, 2023 at 1:46 AM
Such a great and knowledgeable book. I really love it. You done very nice work in this article. Now it's time to avail 1 litre water bottle for more information.
ReplyDelete
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"Anyone responsible for monetizing digital content in consumer markets should understand this radically new perspective on pricing and how to maximize lifetime customer value."

- Shelly Palmer, Business Advisor, Author, Commentator

"...an innovative and visionary methodology …what disruption could look like..."

- Lucila Pagnoni, News Corp Australia

"...groundbreaking..."

- Professor Pennie Frow, University of Sydney Business School

"...compelling ...promises to transform business..."

- Professor Adrian Payne, University of New South Wales Business School

"Highly recommended for digital business entrepreneurs, as well as established firms..."

- Jim Spohrer, IBM and ISSIP.org

Foreword by Adrian Payne

How FairPay Works
...over a relationship, as a repeated game
...through a deceptively simple balancing dynamic:

1. Set the rules (Seller). As usual, the seller sets the ground-rules of the game, but in this repeated game, the rules favor fairness, transparency, and cooperation on both sides. The seller decides to whom to make a FairPay offer, on what terms and conditions. FairPay offers are a privilege that can be granted or withheld.

2. Set the price (Buyer). Reversing traditional practice, the buyer is granted the power to set the price to whatever value-based price the buyer considers fair -- after the sale, when the real value is experienced and known.

3. Repeat the game? (Seller). This seller power is what makes FairPay work, balancing the power of the buyer to set the price. The seller tracks the price, and determines, in the context of the overall history, whether it seems fair enough to the seller to continue the FairPay game for another round.

The buyer knows this is a repeated game, and must consider the consequences when exercising his price-setting power. That motivates the buyer to price reasonably fairly. This builds a relationship based on fair value exchange, that adapts and evolves over time. The seller manages "dialogs about value" that frame the value that was delivered, and a suggested price for that -- and nudge the buyer to be generous by offering more value for more generosity.

This repeated game structure gives buyers a strong incentive to price fairly – and enables sellers to limit their future exposure to those who do not.

More broadly, it shifts the entire focus of customer relationships from short-term transaction price to long-term relationship value.

...See Overview for more

Consumers -- Pay only what seems fair to you:

Pay what you think fair for products or services – after you try them
Make every purchase on a trial basis – so you can always be sure to get your personal fair value for your money
Agree to set your price fairly – in your judgment – and explain why you think it is fair
Keep that privilege as long as you can convince the seller that you are being fair

Businesses -- Get the most revenue from the most customers by continuously learning what each one values:

Engage in real dialog with each of your customers and listen to their perceptions of the value they get from your products/services
Make a trial offer to every potential customer who sees potential value
Suggest a price after use that you think is fair for that particular customer, considering all relevant factors
Offer incentives, such as premium tiers and perks, to entice fairness, even generosity
Let your customers self-select into segments (based on usage, value perception, willingness and ability to pay, ...)
Limit your risk from those trial offers by tracking the results (fairness) for each buyer, and limiting future offers if you judge that buyer to not pay fairly
Retain set-price plans for those who refuse to play the game fairly
Learn how much freedom (FairPay credit) to extend (or what restrictions to enforce) to get satisfactory results from each customer segment
Continue to make every offer a trial...
...as long as each buyer continues paying fairly--in your judgment

Delight your customers: give them what they really want, at a price they really think fair.
Shift the conversation from price to value, and from transactions to relationships.
Empower them to engage with you and tell you what they value.
Make commerce a repeated game that drives value creation to build a profitable relationship with high Customer Lifetime Value (CLV).

Sample FairPay Offer

...This sample offer letter to consumers shows how a newspaper might frame FairPay as a privileged benefit to regular patrons – to enable them to participate in a win-win pricing process and personalize their value propositions – as an alternative to a standard freemium "soft paywall."

FairPay Application/Market Sectors
...Overview of major market sectors in which the FairPay revenue model is readily applicable

Why would anyone pay if they do not have to? ...and other FAQs
...The answer is simple: Buyers who do not pay will not get further offers.

Resource Guide to Pricing
...Annotated links and references on Pricing, Pay What You Want, and other related background