Companies might fear pricing changes because of churn, but it also might be a lever you can pull for growth. Here’s how to find out.
Pricing is often the most overlooked “P” in the SaaS marketing mix. We see it in our marketing practice often.
Companies may be averse to raising prices for fear of losing customers, focusing on other priorities like product development, or simply don’t understand the impact on the business.
In this episode, we caught up with Pat Meegan, Senior Partner at Maple Street Advisors, who talks about assessing the opportunity for pricing growth regularly by looking at four key indicators:
- Leadership doesn't have a clear pricing strategy that everyone can point to and have confidence in.
- Inactivity in pricing for a significant period (six months to a year).
- Market data that indicates the potential for better pricing or an optimized pricing structure.
- Value-added to the product without corresponding pricing adjustments
And given the risks such as customer churn or dissatisfaction, Meegan provides insights into how companies can approach pricing to drive growth and satisfy both their customers and investors.
Key Takeaways from this episode:
- How to evaluate a DIY approach to pricing or bringing in an external advisor
- How to determine if pricing is a lever you can pull for growth and profitability
- How to pressure test new pricing strategies to mitigate churn risk
Other resources to check out:
Interview with Vinay Bhagat, Founder and CEO of TrustRadius who publishes a yearly report about how B2B buyer behavior is changing.
The Lead Gen Mistake I Guarantee You’re Making – how to create content that better identifies intent from today’s b2b buyer.
And, if you want an outside look at your content with actionable advice, take advantage of our Content Audit. Valued at $20K in free consulting.