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Frameworks, core principles and top case studies for SaaS pricing, learnt and refined over 28+ years of SaaS-monetization experience.
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A comprehensive pricing strategy audit helps you identify strengths, weaknesses, and opportunities in your current pricing approach. Here's how to conduct an effective audit:
1. Gather and Analyze Your Pricing Data
- Tier/Package Performance Analysis: Evaluate your existing pricing tiers or packages by analyzing average deal size, upsell rates, discounting patterns, and shelfware issues.
- Financial Metrics Assessment: Review key financial indicators including ARR, discounting levels, and churn rates across different customer segments.
- Pricing Power Analysis: Examine your $/metric performance across sales teams, geographic regions, customer segments, and product lines to understand your pricing power.
- Usage Analysis: Determine whether customer usage patterns correlate with your chosen pricing metrics.
2. Benchmark Against Best Practices
- Evaluate your current pricing structures against evolving industry standards
- Identify areas where your pricing model deviates from market expectations
- Assess competitive positioning and value perception
3. Conduct Stakeholder Interviews
- Interview internal teams (sales, product, customer success) to gather insights about pricing challenges
- Document common customer objections to your current pricing
- Identify friction points in the sales process related to pricing
4. Evaluate Alignment with Go-to-Market Strategy
- Assess whether your pricing model supports your overall GTM approach
- Determine if your pricing structure makes sense for your target customer segments
- Identify misalignments between pricing and your sales motion
5. Review Pricing Tools and Enablement
- Evaluate your existing pricing calculators and sales enablement materials
- Assess whether your teams have the proper training and tools to implement pricing effectively
- Identify gaps in organizational alignment around pricing strategy
6. Document Findings and Opportunities
- Create a comprehensive report highlighting strengths and weaknesses
- Identify specific areas for pricing model improvement
- Develop actionable recommendations based on your findings
Implementation Considerations
Once your audit is complete, consider developing:
- A detailed implementation plan for rolling out pricing changes
- Internal training and customer communication strategies
- Updated sales enablement materials and pricing calculators to support the new pricing model
A well-executed pricing audit can transform your approach, as demonstrated in our case studies where companies have successfully transitioned from ad-hoc pricing to structured models that align with their go-to-market strategy, resulting in more consistent sales and reduced friction in the sales process.