We want you to look at pricing the same way you look at other business functions, because at the end of the day pricing is the greatest leverage that you have on your bottom line. Empower your organization to be in tune with your customers and always be optimizing for profits. If you remember nothing else from this post – remember these few points.
Pricing is a constant process that is fueled by tons of customer data
A pricing committee is the strong grip of a hand that cranks your pricing lever
You should be evaluating every quarter and making sure that your personas are quantified
You should be making minor changes every three months, and major changes every six
Improve your product so that you can improve your pricing. 1% increases in price yield 11% increases in profit.
Less than 20% of new revenue came from existing customers in the form of up-sell and expansion sales
Companies with longer contracts (2+ years) reported the lowest annual unit churn
Companies with longer contracts (2+ years) reported the lowest annual unit churn
SaaS organizations are now operating in over 100 countries
How Often Should The Pricing Committee Be Meeting And Making Changes?
SaaS IPOs have more than doubled over the last 12 years
Sony’s PlayStation brand had accumulated approximately 38.57 million fans on the social network