33 min
19 | New to Pricing & Monetization? Make It Your Top Priority (Deep Dive) Good Revenue
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- Business
The most important thing on your list this year should be fixing your pricing & packaging. Here's what to know if you're just getting started.
Key Takeaways:
*Pricing isn’t about price points. It’s not about matching the competition. It’s about validating what customers need, value, and are willing to pay for.
*Benefits of pricing research are: positioning, target customer segments (an actionable segmentation), key messages, product roadmap validation, AND pricing & packaging.
*Some customer segments are worth more than others. It’s absolutely better for your business to focus on high ROI segments vs trying to serve everyone.
*Pricing & packaging (and your positioning) will evolve as you scale. You have to find product-market-pricing fit all over again at each stage of your business and/or as markets change (no one tells you this!), even if you’re a public company.
*At the same time, you have to deliver more value to existing customers to retain them over time. Don’t assume that just because you acquired a customer, you’re done.
*You must kick the tires on a wide range of business models. Don’t just pick usage or flat subscription because it’s popular. Especially if you have multiple target segments. You want to align your value metric with what customers care most about. And that will vary by customer segment.
*Don’t assume your competitors have done the work. You can use pricing to differentiate yourself in a crowded market if you figure out what your best customers value.
*Start pricing work as soon as you can. External validation (a.k.a. customer research) cuts through the noise, and it takes the bias and opinions out of the mix when it comes to pricing (and your business strategy).
*If you only look at contracts, competitors, and short term fixes like AI, you miss all the benefits of taking to your customers and understanding what they are willing to pay for.
*Your contracts are an input into your forward-looking strategy, but they're not canon. Historical data reflects your business and the market over time. And it likely includes all those discounts authorized in a tough quarter, product features no one cares about anymore, etc.
*If your product or services have changed over time, so should your pricing.
*If your product hasn’t changed but the market has, you should fix your product or enhance your offerings.
*What you need to do to implement a successful pricing strategy.
*Key questions to ask and research methodologies you should consider depending on whether or not you’re evaluating a single product vs multiple products or multiple brands.
_
Where to find Neeta:
https://www.linkedin.com/in/neetabidwai/
_
Where to find Good Revenue:
https://dfnstrategy.com/goodrevenue
Sound by RPS Audio.
Hosted on Acast. See acast.com/privacy for more information.
The most important thing on your list this year should be fixing your pricing & packaging. Here's what to know if you're just getting started.
Key Takeaways:
*Pricing isn’t about price points. It’s not about matching the competition. It’s about validating what customers need, value, and are willing to pay for.
*Benefits of pricing research are: positioning, target customer segments (an actionable segmentation), key messages, product roadmap validation, AND pricing & packaging.
*Some customer segments are worth more than others. It’s absolutely better for your business to focus on high ROI segments vs trying to serve everyone.
*Pricing & packaging (and your positioning) will evolve as you scale. You have to find product-market-pricing fit all over again at each stage of your business and/or as markets change (no one tells you this!), even if you’re a public company.
*At the same time, you have to deliver more value to existing customers to retain them over time. Don’t assume that just because you acquired a customer, you’re done.
*You must kick the tires on a wide range of business models. Don’t just pick usage or flat subscription because it’s popular. Especially if you have multiple target segments. You want to align your value metric with what customers care most about. And that will vary by customer segment.
*Don’t assume your competitors have done the work. You can use pricing to differentiate yourself in a crowded market if you figure out what your best customers value.
*Start pricing work as soon as you can. External validation (a.k.a. customer research) cuts through the noise, and it takes the bias and opinions out of the mix when it comes to pricing (and your business strategy).
*If you only look at contracts, competitors, and short term fixes like AI, you miss all the benefits of taking to your customers and understanding what they are willing to pay for.
*Your contracts are an input into your forward-looking strategy, but they're not canon. Historical data reflects your business and the market over time. And it likely includes all those discounts authorized in a tough quarter, product features no one cares about anymore, etc.
*If your product or services have changed over time, so should your pricing.
*If your product hasn’t changed but the market has, you should fix your product or enhance your offerings.
*What you need to do to implement a successful pricing strategy.
*Key questions to ask and research methodologies you should consider depending on whether or not you’re evaluating a single product vs multiple products or multiple brands.
_
Where to find Neeta:
https://www.linkedin.com/in/neetabidwai/
_
Where to find Good Revenue:
https://dfnstrategy.com/goodrevenue
Sound by RPS Audio.
Hosted on Acast. See acast.com/privacy for more information.
33 min