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Pricing & packaging pricing roadmap to help grow revenue

Pricing & packaging pricing roadmap to help grow revenue

Product Marketing Alliance
PRO

April 01, 2020
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  1. Natalie Louie, Director of Product Marketing @ Hired

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  3. What is pricing?

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  4. Pricing is creating, communicating and capturing 

    value
    Creating,.
    .Communicating
    and .Capturing.

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  5. Pricing is creating, communicating and capturing 

    value
    Predictable
    Recurring
    Revenue

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  6. What areas does pricing impact?
    What areas does
    pricing and packaging
    impact?

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  7. Revenue Finance SalesOps
    Product ProServices Tools
    Enablement Customers
    Competitive
    Intelligence
    Geographies Legal Contracts
    Comp RevRec Partners

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  8. Senior Executives

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  9. A strategic 

    cross-functional 

    person should 

    own pricing

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  10. Ideally its YOU, 

    Ideally its.
    .YOU,.
    the Product Marketer.

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  11. PMM owns GTM to coordinate product and sales
    Product Management has a Product Roadmap to
    coordinate everyone in a company

    Pricing also coordinates many groups = Pricing Roadmap

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  12. Pricing Concepts

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  13. 3 Revenue Buckets in Subscription Businesses
    Win
    Keep
    Grow
    Acquisition Retention Expansion

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  14. Continual Development of the 4 Pricing Levers
    Price

    Points
    • What do you charge?
    • What’s the discount
    policies?
    • Promotions?
    • Pricing segmentation?
    • Value Based Pricing?

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  15. Continual Development of the 4 Pricing Levers
    Market
    Segments
    Price

    Points
    • What are the shared
    problems?
    ✓ Industry
    ✓ Geography
    ✓ Title or role
    ✓ Size of company

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  16. Continual Development of the 4 Pricing Levers
    Market
    Segments
    Pricing
    Metrics
    Price

    Points
    • What do you
    charge for?
    • What does your
    customer value?
    • B2B vs. B2C
    ✓ Users
    ✓ Data
    ✓ Email
    ✓ Message
    ✓ API Call
    ✓ Interaction

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  17. Continual Development of the 4 Pricing Levers
    Market
    Segments
    Pricing
    Metrics
    Price

    Points
    Packaging
    • Good, Better, Best
    • Options
    • Where do you put
    new features
    • Upsell & Cross Sell

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  18. Continual Development of the 4 Pricing Levers
    Market
    Segments
    Pricing
    Metrics
    Price

    Points
    Packaging

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  19. Continual Development of the 4 Pricing Levers
    Market
    Segments
    Pricing
    Metrics
    Price

    Points
    Packaging
    Value Levers

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  20. Continual Development of the 4 Pricing Levers
    Price
    Points
    Pricing
    Metrics
    Packaging
    Market
    Segments
    Market
    Segments
    Pricing
    Metrics
    Price

    Points
    Packaging
    Value Levers

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  21. Your Pricing Roadmap organizes these Pricing Concepts

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  22. Q1 Pricing Roadmap
    Focus on introduction of subscription pricing for acquisition
    STUDY AND DEFINE MARKET SEGMENTS
    !Who is our ideal customer profile
    !What industries are they in, what size companies and
    markets
    !Why do they need us? What are their alternatives?
    !How do we help them
    RESEARCH COMPETITION & ALTERNATIVES
    !What are options our ICPs have?
    !How much do they cost?
    !What problems are the competition solving?
    !What are the alternatives and pros/cons?
    !How do they price and package?
    CREATE PRICING, PACKAGES & METRICS
    !How do our customers value our product?
    !What should we charge?
    !How do we charge?
    !What’s our discount policy?
    !What terms will and won’t we allow?
    !Create guidelines for deal desk
    !What is considered an exception?
    Jan
    2020
    ! Finalize pricing for the product
    ! Train entire field on pricing
    ! Focus on market share
    ! Embed pricing in template
    ! Discount policy: sales can discount up
    to 20% with no approval
    Feb
    2020
    ! Do not change pricing, hold list prices,
    unless product is enhanced
    ! Monitor what competitors are doing
    and adjust sell price/discount policies
    as needed
    ! Can adjust discount policies to be
    more aggressive if needed on sell
    price
    March
    2020
    ! Pending business goals and sales to
    date, reduce allowable discounts to
    increase ACV/Sell Price
    ! Prepare for Good, Better, Best
    ! Adjust any price points or policies as
    needed pending competitors
    Create a detailed summary for sign-off

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  23. Let’s revisit the most over looked revenue bucket on the Pricing Roadmap

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  24. Raise
    Prices
    Cross
    Sell
    Up
    Sell
    Increase
    Usage
    Grow
    Customer
    Revenue
    LTV

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  25. LifeTime
    Value
    LTV

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  27. THANK YOU

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