You might think taking a step-back to re-think, assess or analyse anything at this time is counterintuitive. You are focussed on survival. Still hungry for quick wins, maintaining growth and meeting your top-line targets but in a completely different context.
But we know re-slicing your product and pricing can be your ammunition for immediate revenue .
Pricing can save you. When sales become unstable, pricing and how you package your product can be the metrics you control. One of our clients saw a 30% revenue increase through one pricing change this month… and that is in the context of today’s market.
We all know how you structure your product is complex. It gets difficult before it gets simple. But there is one part of pricing you can do immediately to generate revenue.
So how do you rethink your productisation and pricing to seize immediate opportunity?
How you structure and sell your product could be limiting any immediate revenue you can make at this time:
Aggressive buyers need aggressive sellers
A determined ROI is vital in a buyers market – if you are selling one feature, module or one user-count too many, buyers will feel like it is money wasted. Stop watering down your offer, or providing negotiation leverage. Slice your product up to the bare minimum.
For one client, we simplified the product-packaging for one segment as it was misaligned to to market’s core drivers of ROI. This led to 2x ACV with 0% conversion rate impact.
Stop selling the market something they don’t want
Today, not all use-cases are equal – don’t risk being deprioritized. Think of the increase in home working, a drive for automation and cost reduction – are you leveraging this, or is this becoming diluted down with your entire product suite?
Slicing the product and making the use-case 100% relevant works. With this method, one of our clients sliced the product and refined the use-case for different pools of custoimers – this led to results such as 49 – 57% pricing increase in contract values.
So what should you do?
Whilst the below might not be the silver-bullet to long-term price optimization, these can unlock a quick shift to revenue in the next 3 months:
- For everyone
- Build a 3m ROI model for every new deal, or new up-sold product
- For the low-converters
- Unbundle the product – sell only the necessary
- For the high-converters
- Prioritize your use-cases/products in line with COVID-19. Focus on the top scorer for new deals/up-selling to hook yourself in and speed up conversion.
If you are looking for a quick win, and unsure on how to slice your product and optimise pricing, contact us.
