All related (12)
Akshay Kerkar
Head of Marketing, Cloud Enterprise & Platform, AtlassianAugust 4

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 won't come into effect until x months after launch

Any pricing change will cause confusion with both your Sales team and customers, so you'll need to keep an ear to the ground and react accordingly. One thing you could do before a big rollout is run the new model by a few trusted partners and customers to get their feedback and figure out major concerns/obstacles that you have not accounted for. 

Ajit Ghuman
Director of Pricing and Packaging, Twilio Flex, Twilio | Formerly Narvar, Medallia, Helpshift, Feedzai, Reputation.comFebruary 21

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 renewal conversations, especially if existing customers have historically been given special treatment (lower rates, more services, etc.) 

You may want to consider creating special upsell bundles or a granular feature menu only for current customers to buy from to ease natural, upsell transitions instead of creating all-or-nothing propositions that current customers may shy away from.

  1. Suppose your customer base broadly has a singular package that was sold historically, and you are now introducing graded packages. In that case, it might not make sense to make customers upgrade to the most elite tier before they can buy the add-on applicable for that tier, because in most cases the upgrade + add-on cost will preclude the upsell from even happening in the first place. This is where a special upsell feature menu might help.
  2. Suppose your customer base is especially large in size based on annual revenue, e.g., in companies >100M ARR. In that case, you could also consider mapping customer sizes to the new graded plans and providing an incentive to move to the new plans (often a higher discount or deferred payment). If the pricing change is at a place where you are compelled to make this a companywide change with customer migrations, then it will undoubtedly become its own project and should be treated as such -- and not part of the initial pricing rollout."

Aurelia Solomon
Head of Product Marketing, DriftMay 2

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 what new great benefits they are getting on this new model. You need to show them "what's in it for them." And then determine how the communication will come - via the AM, CSM, email from someone at your company etc. Some cohorts might require 1-1 touches, whereas others an email sequence followed by CSM outreach might be sufficient. 

Lastly, make sure you give customers time to make the switch. There's nothing worse than having to change to something brand new within 2-3 months when you have other things going on. 6-12 months is a good rule of thumb -- or you can use renewal dates to keep things simple too. 

In terms of adoption, that's where I lean on your customer success team to be great partners to their customers. And share best practices and customer examples of how other customers are benefiting and adopting it. 

Chris Mills
VP of Marketing, AmbitionApril 9

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 them)? If you are in a SaaS/Subscription world, you may be limited contractually on if and how much you can change their price. Generally, you'll need to decide on when to execute the price changes for existing customers. Usually, the renewal period presents a natural place to implement a pricing change for existing customers. It provides an opportunity to talk about new things and sell the value around what you are delivering to justify the price change. It's important not to alienate your customers during a big pricing change, so you need to consider 'grandfathering' existing customers for some period of time on their existing pricing model/price point.

Akshay Kerkar
Head of Marketing, Cloud Enterprise & Platform, Atlassian
The answer really varies by company - I have seen instances of Product Marketing, Product Management, Finance, Biz Ops, and Sales Strategy teams own pricing. In an ideal world, the team that's both tasked with understand your products/market/customers and works closely w/ Sales is the best place to lead pricing initiatives. In most instances, I'd argue that this is Product Marketing. Product Management are important stakeholders in the process (along with teams like Sales and Finance) but since they are not as GTM focused as PMM in most cases I don't think they are in the best position t...
Ajit Ghuman
Director of Pricing and Packaging, Twilio Flex, Twilio | Formerly Narvar, Medallia, Helpshift, Feedzai,
Your room to maneuver depends on whether you have a fully transparent pricing model reflected on your website or if it is somewhat general on the pricing page so that your reps can customize.  If I were to guess, this is a transparent pricing page on your website. 1. Package Definition: It could be worth considering what would increase package differentiation more so that your prospects have a clear choice in front of them. To do this correctly it is important to try to reduce the overlap between the segments targeted by the packages. You can also consider adding a decoy package to mo...
Tamara Grominsky
VP Product Marketing & Lifecycle, Kajabi
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 drafting your qualitative and quantitative research plan. Your research plan should outli...
Jonathan Brandon
Head of Monetization & Pricing Strategy, Intercom
Me too! I was, uh, lucky enough to study Economics in college then spend 15 years in the financial services industry. This gave me a really solid background in research and quantitative analysis. While I haven't taken it, I have heard excellent things about the Reforge Monetization + Pricing course. Many things can be learned outside of class. Here's a super condensed list of reading material I highly recommend. They're not all directly related to pricing & packaging, but have informed how I think and should be understood, especially from the perspective of PMM: * The Strategy and Tactic...
Chris Mills
VP of Marketing, Ambition
1). Pricing & packaging is a complex topic that typically involves coordination between many internal constiutents and teams including Sales, Customer Success, Product, Finance, Deal Desk, Marketing, etc. It's important to make sure that you have alignment between these teams as you embark on any pricing and packaging changes. A key is you need to align on what problem(s) you are solving for. Are you looking to increase demand or remove friction from the selling or buying process (perhaps lowering the price). Are you looking to price and monetize new products or features or fold in an acqui...
Yannick Kpodar
Chief Marketing Officer, Dalenys & Xpollens Payment Solutions, Natixis
Customer willingness to pay is crucial. You can create a product, but if it's not seen as a must-have for your customer, they won't purchase. Focus on building a product that meets a real need, which is core to a business' toolbox. An easy way of prioritizing new feature development is to ask your customers. We have a customer/user community where we ask them to prioritize certain features and ask them why before we develop them.  If you build a product and your customer doesn't purchase, you know you skipped the Voice of Customer phase. Everything we build is because it will either inc...