We're rolling out a new pricing model. How do you drive adoption from your existing customers when pricing variables change?

This is one of the more complex areas of rolling out a new pricing model. It's important to make sure that you understand the impact of any of the pricing changes to existing customers. Are you changing any capabilities that are available to them? Are you giving them more? Generally, you shouldn't and in many cases contractually can't take any thing away. If you are giving them more is the incremental stuff that you are giving them valuable to them? Is it worth the potential price change (to the ...Read More

Few things to consider: 1] Your customer comms plan - when are you letting your customers know? Are you giving them a head's up? Are you letting them know why pricing is changing - e.g. new functionality that's drvcing additional value 2] Your internal enablement plan - for all teams that will be impacted - Sales, Ops, the folks who handle quoting, etc. 3] Arming your sales team - to explain pricing, handle objections, etc.  4] Do you have a grace period for existing customers? E.g. new pricing ...Read More

This is a great quesstion. And a tricky one. The key is to first segment your customers - and determine how you want to communicate, and what you want to communicate, to each group. For example, you might have long time customers on your legacy pricing that you want to give them extra time to make the change - or some type of discount/incentive to do so faster.  The next step is to prepare what your communication to each cohort of customer will be. And try to make it very simple, showing them wh ...Read More

Education, education, and more education! Adoption takes time and education. Many companies plan for a pricing rollout by writing an informative email, which drives awareness of change but not adoption. Some key tactics to drive adoption from your existing customers when pricing variables change:  Leverage in-app messaging on how variables have changed in context to the announcement (e.g., modals, tooltip, banner, etc.) to drive targeted education of changes and increase adoption. Track the perf ...Read More

I assume this new pricing model often comes with packaging changes. My hot take (maybe not so hot) is that packaging is much more important and impactful than your dollar price. If you’ve implemented a change in pricing and packaging, use the changes in packaging to drive adoption and upsell. Maybe there’s a new feature on the new plan types that you know customers want, you can use that to encourage them to adopt the new pricing plan. Maybe there’s more power available to them in the next plan ...Read More

To drive the adoption of a new pricing model from your existing customers, you will need to clearly communicate the value and benefits of the new pricing model, and provide all available support to help customers make the transition. Some specific steps you can take include: 1. Communicate why a new pricing model is valuable for users. Clearly explain the value proposition of the new pricing model to your existing customers, highlighting new benefits and features that will make it more appealing ...Read More

Congrats and Godspeed!  Rolling out a new pricing model is exciting, and often is done with the future of your company in mind. New markets, new buyers, a lot of fun! But existing customers are your present and your past. Be careful about rolling out the same changes to your existing customers. Treat existing customers as special. The following is an excerpt from my book, Price To Scale. "Often applying the same rules to existing customers as new customers can result in difficult expansion and r ...Read More