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Estd 4.22.2023
Based on our book Price to Scale, these elements—SLAs, faster support response times, and training services—are seen as critical components that go beyond the core product for enterprise customers. They serve as value-adding features that address the complex needs of larger organizations. Here’s how they generally fit into enterprise pricing:
• Direct Value Add: Enterprise customers expect more than just basic functionality. Enhanced support and training can be key differentiators that provide security and improved user adoption. As mentioned in the discussion of Salesforce’s Service Cloud packages, higher tiers often include features like 24x7 support to cater to these in-depth needs.
• Bundled vs. Add-On Approach:
- Bundled Offerings: In many cases, it can be beneficial to bundle these services into the enterprise pricing package. This approach simplifies the buying process and ensures that the customer immediately receives a comprehensive, high-value offering. It aligns with our recommendation in Price to Scale to design packages that directly map to the more complex requirements of enterprise clients.
- Add-Ons or Separate Line Items: Alternatively, some businesses choose to offer these services as add-ons, which can provide more flexibility and allow customers to tailor their purchase based on specific needs or budget constraints. This model is particularly useful if your enterprise customers have varied requirements or if you want to upsell a more customized service experience.
• Strategic Considerations:
- The decision often hinges on your operational readiness and how you want to position the customer experience. Bundling ensures that all the enterprise-level needs are met seamlessly, while with add-ons, there’s greater flexibility and potentially higher margins from premium services.
- It’s also important to have close collaboration with product, sales operations, and the legal teams to ensure that the pricing model you choose is sustainable from both an operational and customer relationship perspective—reflecting the strategic insights outlined in our book.
In summary, our pricing strategy in Price to Scale emphasizes that while these services are essential for enterprise customers, whether you bundle or sell them separately depends on your overall product strategy, customer segmentation, and operational capabilities. The key is ensuring that the value provided by these enhanced services is clear and aligned with the customer’s expectations.