Subscription pricing strategy is frequently neglected in many organizations, and large “pricing refresh” projects can be challenging because you don’t know where to start.
The first step to refreshing your pricing strategy? Identify what’s not working. Sometimes you’ll find signals of dysfunction such as: excessive discounts across your sales team, the need to constantly run promotions, and static price rates that haven’t increased in years.
A thorough review of these red flags is the first step to identifying the goal of your pricing refresh. Have a clear picture of what metric you are trying to move:
You can’t land new customers: Do you need to change pricing to increase customers in a particular segment?
Your upsell path is broken: Do you need to change pricing to increase Average Revenue Per Account by creating more upsells / cross-sells?
Your pricing is static and hasn’t kept up: Should you simplify your pricing strategy so that customers can more easily leverage new features?