AMA: Kajabi VP Product Marketing & Lifecycle, Tamara Grominsky on Pricing and Packaging

Whenever we launch a new product or feature, I make sure we're aligned on the core business metric we want to drive. Is this a churn reducer? A top of funnel acquisition play? An expansion or ARPU play? This should help to guide how you frame the opportunity.  If you're torn between a few potential paths forward, I always suggest a quick back of envelope calculation to help size the opportunities. In this case - if you were to offer it to all customers for free, how much could you improve the ac ...Read More

There are several different triggers that could spark this converstion - the launch of a new product/feature that is monetizable, competitive movement in the market, the decision to pursue a new adjacent market, an acquisition of a company, major changes in a key business metric, etc. In any way, if you see an opportunity to re-investigate your current pricing and packaging, I'd suggest that you anchor it in one of these changes - this is a great way to frame the opportunity and help other stake ...Read More

There is no one correct answer to this, unfortunately. There isn't a perfect number of pricing tiers that will unlock growth, but some research has been done that you can use as a starting point. Many people reference the power of three, and the popular good, better, best pricing strategy. This school of thought proposes that having any more than three options overwhelms the buyer and introduces increased cognitive load.  While Good, Better, Best is a common package structure, it’s not the only ...Read More

Taking the time to build out a structured plan is an amazing first step to ensure your project is successful - so happy to hear you're thinking about this from the beginning. I like to think about pricing projects in 5 phases: Goal Setting, Research, Strategy Development, Testing, Go-to-Market. First, you want to ensure you start the project by setting a clear objective and aligning on the measures of success with all stakeholders. Once you’ve finalized the goal and KPIs, you’re ready to begin d ...Read More

This will vary business by business based on your market position, your target customer profile, your go-to-market motion, and more. But in general, I usually highlight a few areas of concern for folks to be aware of before they jump into a pricing project: Don't do everything alone. Pricing touches almost all parts of the business, and it's important to form a cross-functional stakeholder group to help guide the pricing overhaul. You still need one person to hold accountability, but it's best w ...Read More