How do you think about pricing when going from a single product to a multi-product platform?

Assuming you have a clear strategy, it always comes down to understanding your ideal, target customers. When going from a single product to multiple, you need to figure out who it's for, what drives value, and how you plan to charge. We have a set of richly detailed buyer personas at Intercom that connects segmentation, value drivers, product needs, and willingness-to-pay. To develop packages, you start with a hypothesis: create hypothetical packages, price points, and buying motions (self-serve ...Read More

For starters, going multi-product is hard! Like, really hard! And it's typically for reasons outside of pricing and packaging: sellers need to communicate a bigger narrative (think the Customer 360 platform vs Sales Cloud at Salesforce) the product needs to have natural cross-sell points that seed reasons for a customer to expand support, success, and implementation will all need to level-up their knowledge to provide killer experiences But let's say you get past that. On the P&P side, here' ...Read More

Single product pricing is (relatively) straightforward. When you go to multiple products, or multiple SKUs of the same product (e.g. a Standard Edition vs. Premium vs. Enterprise), the complexity explodes across multiple fronts - Ops/quoting, your website/customer comms, sales enablement, and rep conversations w/ customers.  Perhaps the most important part to figure out when you go multi-product is the GTM model - for example, will you lead with one product and the others will be upsells over ti ...Read More

This is one of the hardest types of pricing work that I’ve done. The biggest things to me were: Understand how interconnected these products should be: Do you expect these products to be used together frequently? Are they coexisting with one another and can be used on their own or is the best customer experience to use together. Align on attach goals: Understand how important it is for your customers to use all of your products together. Are the company’s goals more focused on getting new custom ...Read More

I would encourage you to make sure you’re putting the customer first whenever you encounter this. In my experience, it’s really tempting to bolt on the next product with slightly different pricing that solves for that particular new product but doesn’t account for the existing one. Then you can end up with a bit of a frankenstein experience that makes it hard for customers to evaluate what’s right for them, having downstream effects on conversion. So make sure that whenever you’re going from one ...Read More

This is a good question. Multiple products, sold successfully together can take a company from good to great. You now have multiple revenue streams and a chance to increase the total spend your customers make with you. Leading to high growth rates and NDR (net dollar retention) rates.  From a pricing standpoint, it is important to think about these products both individually and together.  What do I mean by that? All products will have to be priced on their own merits, based on the buyers and us ...Read More