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Nate Franklin

AMA: Amplitude Director, Product Marketing, Nate Franklin on Pricing and Packaging

April 25, 2023 @ 10:00AM PT

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  1. Any advice for creating a pricing strategy for a value-based B2C subscription product for a brand new company?

    I know what my competitors and similar products are charging, but I'm trying to figure out how to estimate conversion, churn, and customer lifetime for my product. We are a brand new company (so no existing branding or customer trust), we are B2C in the healthcare & fitness space, and we have a value-based product - i.e. not media streaming, or physical goods - like Medium. Any thoughts or resources about how to approach this analysis would be helpful. Thanks!

    Nate Franklin
    Nate Franklin

    Airtable Senior Director, Product Marketing • 3y

    Let me preface my response and say that B2C is not the bulk of my experience, but here's how I would approach it. You have to talk to customers. I would start by trying to understand what customers alternatives are to your product and how much time, energy and of course $$ it costs them. That's a good way to think about a starting place. Then running a pricing survey and ultimately a price test is the way to go. Depending on your product, having multiple levels will make sense - but you probably ...Read More

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  2. What is the best approach for rolling out pricing and packaging changes? Especially increases in pricing or restrictions to features without angering customers?

    Nate Franklin
    Nate Franklin

    Airtable Senior Director, Product Marketing • 3y

    Let's just agree that no likes paying more for the same thing and no one likes having things taken from them. So your job is 1) to not let them see it that way, 2) decide a method for grandfathering customers in and/or 3) be willing to take a bit of PR hit. Regardless of what you choose, you need to give customers time to adjust - the larger the change, the more time they need. For #1 -- Ideally you can do this after a major launch / release which introduces new uses cases to your product. That ...Read More

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    2 requests

  3. How many price points and packages should I offer customers?

    Nate Franklin
    Nate Franklin

    Airtable Senior Director, Product Marketing • 3y

    3 or 1. Please don't do more. Getting customers to spend money on your product is hard, don't make it harder by giving them too many options. Three is easy, standard, and just makes sense -- small, medium, large. One puts a line in the sand and you can capture more price sensitive customers with special offers / discounts.

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  4. I'm looking at a potential pricing + packaging re-vamp. I've identified the problems + opportunities and would love insight in thinking about whether to run in-house or hire a consultant. If a consultant, whom else have people worked with aside from ProfitWell and Simon Kucher? Ideally want to learn along with the project

    Nate Franklin
    Nate Franklin

    Airtable Senior Director, Product Marketing • 3y

    I've found that running a price / packaging revamp in-house versus with a consultant depends on three factors: Assigning a DRI to lead the project and having a clear decision matrix Ability to run a pricing study & impact analysis Scope of risk of the change / ability to run pricing as a test Ultimately, this is a judgement call - but clearly if you are not feeling confident in any of the above - you should take a hard look at whether or not it is right time to do this project. Here's my bre ...Read More

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  5. How do you approach competitive intel for pricing?

    Nate Franklin
    Nate Franklin

    Airtable Senior Director, Product Marketing • 3y

    Competitive Pricing Intelligence is tricky because that information is often confidential so you cannot just go ask a customer or a partner for it. However, it's natural to come across it and there are some ways I've found to go find it. Talk to your sellers. Customers (existing and prospective) will often share pricing of alternatives in regular conversation as they negotiate a deal -- you may not always get specifics, but if you get enough ballpark estimates you can get a pretty good sense of ...Read More

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    2 requests