Deprioritize Sales Enablement During Price Changes at Your Own Peril Selling is difficult in the post-pandemic world. This Forrester Study [https://www.forrester.com/blogs/three-seismic-shifts-in-buying-behavior-from-forresters-2021-b2b-buying-survey/] shows that independent buying scenarios (which involve only one or two people) are a thing of the past. 2021 data suggests that 63% of purchases (as against 47% in 2017) have more than four
Three Pricing Bigwigs Weigh In On The Good-Better-Best Packaging Approach Most SaaS companies have more or less done away with monolithic pricing models, and instead, focus on value when packaging and pricing for impact. This is where Good-Better-Best packaging comes in. Essentially, this is a tiered model that provides (a) a basic/pared-down offering at a competitive price (Good) to
pricing 3 Legs your Pricing Program Needs to Stand On A sound pricing program can increase margins [https://online.hbs.edu/blog/post/how-to-increase-profit-margin] and propel growth for SaaS companies. How you get to your pricing is probably just as important (if not more) than the pricing itself! For 64% of technology customers, the pricing model was important or extremely
pricing research Optimize Your Pricing by Doing These 3 Things Are you asking your team the right questions? Are they questions that are driven by business impact? As this Forbes article [https://www.forbes.com/sites/forbestechcouncil/2020/09/10/how-to-get-started-on-a-saas-data-strategy/?sh=58d5541c6c38] rightly suggests – you cannot answer questions with the data you did not collect! We live in a
perpetual licensing Transitioning from Perpetual Licensing to Subscription Pricing – How Rubrik Did It The subscription economy is fast becoming the order of the day, and the transition away from legacy models has been in motion for a while. Gartner [https://www.gartner.com/smarterwithgartner/moving-to-a-software-subscription-model] predicted that by 2020, all new entrants and 80% of historical vendors will offer subscription-based business models. For
pricing operations Wait! Don't Overlook This With Your Pricing Operations “Everybody touches pricing, but nobody owns it!” Does this resonate with you? If yes, then it’s because this is a common complaint [https://www.bcg.com/publications/2017/digital-go-to-market-transformation-building-strategic-pricing-organization] in the adoption of pricing initiatives, across companies. It’s not just the right price that is important, but also
Price Right In The Blue Ocean Are you on the verge of creating a whole new category in the post-pandemic (nearly there!) world [https://www.forbes.com/sites/bobzukis/2020/04/09/there-will-be-blue-oceans-everywhere-post-pandemic/?sh=49c955414029] , but are wondering how to price and position within it? You are then in the proverbial blue ocean, a term from
pricing Value-Based Pricing Metrics – The Silver Bullet For Pricing Success A cardinal consideration [http://gartner.com/en/information-technology/insights/business-value-of-it] when assessing value is that it needs to be measured by business outcomes, and impact to the mission or consumer. This BCG report [https://www.bcg.com/publications/2017/corporate-development-value-creation-strategy-capturing-more-value-new-technology-growth-models] speaks of the need to build a ‘value bridge’ that
cpq What Three Top Silicon Valley Pricing Experts Think About CPQ Configure-Price-Quote (CPQ) refers to a system that allows a sales rep to configure a package, generate a pricing quote (including internal approvals on discounts, etc.) and the contractual paperwork for their deals. This enables fast deal closure while keeping a record in the CRM of what exactly was sold, and
Featured Adapt, Evolve & Grow – Pricing Evolution at Nosto Note: The following content is adapted and re-published from author Ajit Ghuman’s book, Price To Scale [https://www.amazon.com/Price-Scale-Practical-Pricing-Startup/dp/B092CB6147]. ------------ Nosto is a multinational company that makes product recommendations like the ones we see on popular e-commerce websites and apps like Amazon and Ebay. Today
Do you need a consultant to help with Pricing? It may be safe to put a twist on the oft-cited phrase about software and instead say, “SaaS is eating the world.” A BMC Software blog [https://www.bmc.com/blogs/saas-growth-trends/] states that by the end of 2021, 99% of organizations will be using one or more SaaS solutions.
The 3 Key Phases For A Pricing Revamp: How The Best Do It The long term success of any SaaS company is aligned with its pricing [https://www.businesswire.com/news/home/20190206005510/en/Competitive-Pricing-Engagement-to-Monitor-Competitors-Pricing-Strategies-and-Maximize-Profits-for-a-Retail-Company---A-New-Report-by-Infiniti-Research] and revenue generated. Pricing influences the purchasing decisions of customers [https://www.forbes.com/sites/rebeccasadwick/2021/01/14/how-to-prioritize-features-that-get-customers-to-buy-understanding-what-influences-
How To Evolve Pricing Plans In A Large Segmented Market In 2020, Gartner [https://www.gartner.com/en/newsroom/press-releases/2021-04-07-gartner-forecasts-worldwide-it-spending-to-reach-4-trillion-in-2021] noted that, of the worldwide annual IT spending of $4 trillion, SaaS represented a growing portion of spending. This was expected to account for $105 billion in total revenues [https://www.gartner.com/en/newsroom/press-releases/2020-07-23-gartner-forecasts-worldwide-public-cloud-revenue-to-grow-6point3-percent-in-2020] , and is
Featured What Nobody is Telling You About Pricing Operations… The Software as a Service (SaaS) market projections for hypergrowth were recently put to test as part of this McKinsey Study [https://www.mckinsey.com/industries/technology-media-and-telecommunications/our-insights/saas-and-the-rule-of-40-keys-to-the-critical-value-creation-metric] . It revealed that, of 100 public SaaS companies in the US with revenues above $100 million (that were analyzed in May
Featured 3 Stages You Should Traverse on Your Pricing Journey A one-time only price setting effort is a no-go! Pricing is a dynamic process that must evolve and adapt to your growth. It should be, as this McKinsey Article [https://get.fuelbymckinsey.com/article/the-6-rules-of-setting-price-for-saas-offerings/] suggests – an essential and frequently used tool in the toolbox of every SaaS company. Elements
Nail Your Modular Packaging in 5 Easy Steps Forrester Vice President and Principal Analyst Duncan Jones says [https://www.forrester.com/blogs/finding-the-saas-goldilocks-zone-value-based-pricing-thats-just-right/] , “Best-in-class pricing includes clear pricing and packaging as well as a policy that promotes sales confidence.” Packaging is very much at the heart of a good pricing strategy. Getting it right is a delicate balance
If you feel like you are leaving money on the table? You probably are. Pricing is probably the most important lever to influence and impact profitability. A McKinsey study [https://www.mckinsey.com/business-functions/marketing-and-sales/our-insights/understanding-your-options-proven-pricing-strategies-and-how-they-work] reveals that effective pricing strategies and tactics can deliver a 2 to 7 percent increase in return on sales. If your prevalent concerns are around churn, and
How Mixpanel Repackaged Its Pricing To Fit Its Users Better Packaging your offerings by focusing on the value created for the customer can help you get the price you deserve. According to an EY article [https://www.ey.com/en_gl/technology-sector/can-you-repackage-your-existing-products-to-become-a-market-maker] , product packaging is the ‘secret weapon’ to increase that value for priority customer segments, further enhancing their
Moving to a Subscription Pricing Model? Here’s what to watch out for... The Subscription Economy is here, and thriving. Gartner [https://www.gartner.com/smarterwithgartner/top-10-trends-in-digital-commerce] foresees that by 2023, 75% of organizations selling direct to consumers will offer subscription services. The will to migrate to subscription pricing models is evident in this EY global study [https://www.ey.com/en_us/
pricing Choosing The Right Value Metric Is About What Fits! Before landing on what pricing strategy you should adopt, keeping the customer at the center of it, is worth it all. When you think of consumer behavior, the assumption is that they are ‘value-conscious’ – that they will prefer paying the lowest possible price when they purchase a product or a
The 7 Essential Considerations For Selecting The Right Pricing Metric Did you know that the average SaaS company spends around 6 hours over their entire life cycle on pricing [https://www.forbes.com/sites/forbestechcouncil/2021/06/17/tips-to-consider-when-pricing-your-saas-platform/?sh=539b14a53a2d] ? That’s less than a workday’s worth! Nailing your pricing model and evolving your pricing strategy as you
Which Pricing Structure is Best for You? 3 Ways to Find Out “Are we under-pricing?”, “How much should we charge for our product?, “Should we price higher than our competitors?” - Do these questions sound familiar? A 2019 pricing study done by McKinsey & Company [https://www.mckinsey.com/business-functions/marketing-and-sales/our-insights/pricing-distributors-most-powerful-value-creation-lever] observed that a 1 percent price increase would yield
Packaging for Impact - How to Get it Right SaaS companies often leave money on the table, due to a lack of appreciation just how important packaging (not pricing) is to their ability to capture revenue from their markets . The need to package better is seen as an important consideration in a 2020 EY Study of 700 tech companies
cpq Featured Do you really need CPQ? Whenever I mention CPQ, a lot of people feel that it is one of the worst tools to implement in the history of software.
