August 6, 2014

Neopost USA Embraces a Subscription-Based Pricing Model

Neopost USA, an expert in the preparation, delivery and management of business communications, shared its subscription-economy experience with attendees at a unique conference in San Francisco recently. 

Conference sponsor and Neopost USA partner Zuora, which sells subscription management software, asked Sanjay Gupta, Neopost USA's Senior IT Director of Order to Billing Systems, to talk about migrating from traditional pricing and embracing a subscription-based model. 

The basis for Gupta's presentation was the premise that customers would rather subscribe to services than buy products. "That new reality is a dramatic shift in the way consumers and companies prefer to do business," Gupta said. "It also adds value for our customers."

One significant advantage of a subscription-based pricing model is an increased amount of customer interaction.

"When we sell monthly subscriptions to customers, they have the option to upgrade or downgrade at their convenience, which means we have many more opportunities to work together," Gupta said. "That increased frequency of contact works to everyone's advantage. Customers receive the benefits of custom-tailored and money-saving solutions and service offers, and Neopost USA has the opportunity to create strong, long-term working relationships."

The migration certainly brings challenges, specifically "integration with legacy ERP (Enterprise Resource Planning) systems, process and information flow challenges and a whole new set of best-practices to learn and adopt," Gupta said. Nevertheless, "cloud-based 'systems of innovation' cause us to think about new ways of doing business within the subscription-economy business model. That new thinking about a customer-centric pricing environment became one of the fundamental building blocks of Neopost USA's subscription-services-based digital platform which will be launched in the fall." 

About Neopost USA

Neopost USA provides mailing, communications and shipping solutions. For generations, we have worked with our customers to prepare, deliver and manage their customer communications in the most secure, efficient, and professional manner possible. As businesses increasingly move to digital communications, we continue to help our customers communicate – whether in traditional mail, digital communications, or packages. All of this is provided by a network of sales and service professionals providing sales, supplies and service to their customers. For more information on Neopost USA, visit

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Peter Lichtgarn
Neopost USA
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Virginia Anderson
Allison & Partners