Inexperience Shouldn’t Stop You from Setting the Price Right
Only 40% of XaaS leaders felt they possessed practical pricing experience when tasked with developing their company’s pricing model, according to a recent survey. While lack of experience may seem daunting, it shouldn't deter you from spearheading a pricing transformation. However, it does introduce risk. To mitigate the potential pitfalls of pricing strategy design, we recommend cross-referencing against four crucial sources to establish a solid pricing foundation.
Only 40% of XaaS leaders felt they possessed practical pricing experience when tasked with developing their company’s pricing model, according to a recent survey. While lack of experience may seem daunting, it shouldn't deter you from spearheading a pricing transformation. However, it does introduce risk. To mitigate the potential pitfalls of pricing strategy design, we recommend cross-referencing against four crucial sources to establish a solid pricing foundation:
- Voice of the customer
- Expert partners
- Data analysis
- Benchmarking
Voice of the Customer
Capturing the perspective of the customer is essential. We conduct surveys and interviews to glean insights from our clients’ customers. Surprisingly, what might seem acceptable to a company could be perceived quite differently by its customer base. Alternatively, interviewing your sales team can also provide valuable input. It's advisable to involve them early in the process.
We're launching templates and frameworks on The Cube to immediately get you started on how to capture the voice of the customer through interviews, surveys, and market research.
Expert Partners
Consulting with experts to pressure test your ideas is invaluable. Whether you're just starting out or implementing changes, scheduling time with an expert can provide clarity and validation. Our team of experts is available through The Cube to assist you in getting started or to provide a thorough review of your strategy before implementation.
Data Analysis
While not every organization tracks comprehensive data, any available data can be useful. Often, starting with basic data such as a list of current customers and their deal sizes can yield insights. Our team specializes in analyzing available data to inform pricing strategies.
Industry Benchmarks
Understanding industry standards is crucial. Questions like "What is normal churn rate?" are common. It's essential to avoid trying to fix what isn't broken and familiarize yourself with SaaS industry benchmarks for high-performing companies. Be cautious when relying on online resources, as misinformation abounds. Alternatively, consider participating in our benchmarking research on The Cube for accurate industry insights.
For additional resources (frameworks, tools, templates, insights) and expert guidance on how to effectively identify and utilize datapoints from these four sources, join The Cube at monevate.com/the-cube.
