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Estd 4.22.2023
Below is a summary of the process steps recommended in our saas pricing book, Price to Scale, when re-evaluating pricing:
Direct collaboration across teams
• Involve cross-functional teams such as sales, finance, product, and operations to ensure that all perspectives are considered.
• Align on overall business objectives and desired outcomes before moving ahead with any changes.Qualitative research and customer feedback
• Survey your existing customers, using methods like fixed trade-off screens or targeted focus groups, to test reactions to different pricing concepts.
• Use probing questions and straw-man scenarios to gain insights on price sensitivity and overall market reaction.Internal simulations and scenario testing
• Run internal simulations to project market responses under different pricing models.
• Develop multiple pricing scenarios that allow you to assess potential outcomes, ensuring you’re testing both the quantitative and qualitative aspects of your strategy.Operationalization
• Once you’ve identified a promising pricing concept through testing and feedback, integrate it into your daily operations.
• This step involves instrumenting the pricing metric, setting up calculators or CPQ systems, and ensuring proper integration with ERP or billing systems.
• Effective operationalization helps create consistency and enables smooth execution of the new pricing strategy.
In summary, our approach in Price to Scale emphasizes working collaboratively with internal teams, gathering and testing customer feedback, running comprehensive simulations, and finally operationalizing your chosen strategy to ensure it drives the anticipated business outcomes. This full-cycle process helps secure both accuracy and market fit for your price review.