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Pivoting to a New MarketA real-world lesson in pricing and personas

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The Early Days

Pricing a Market & Initial Results

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Pricing Version 0.1

Educated & Informed

Guess

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Pricing Change #1

Sophisticated market research & market panel analysis Pricing on www.bedrockdata.com - Circa 2014

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$149 / Month Starter Package

$199 / Month Growth Package

$299+ / Month Scale + Enterprise Package

89% 8% 3%

Pricing Change #1 Results

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Did we pick the wrong market?

• Competitors pivoting out of space

• Target persona churned higher

• Non-target buyer churned lower

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Listen to the Market

To listen closely and reply well is the highest perfection we are able to attain in the art of conversation.

- Francois de La Rochefoucauld

Competitors? Paying Customers?

Defensible?

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Executing the Price Change

Experience from the Trenches

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Age How long a customer?

Size of Change MRR Increase

Strategic Value Reference Customers

Define Cohorts in the Customer Base

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0403

02Compensate On install base growth

Simplify Pre-approve some discounts

Define Acceptable churn

Schedule Cut-over dates

01

Ensure Account Management Success

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$

$$

Small Price Changes Explain changing markets, why they should come along Clearly outline dates and price change amount Describe NEW VALUE in product

Large Price Changes Outline strong justification for price

Dedicate a team to work accounts Approach like new sale

Communicate Early and OftenNobody like price changes, whether $5 or $5,000

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Results & Ongoing Management

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Market Shift - The Results

New buying patterns: • New sale ASP increase > 310%

New customer demographics: • Company size increase over 2X

New price plan distribution: • Major increase in non-Starter plans

Moving Up-market

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Leverage Learning in Sales and Product

Launch • Sales training • Prospect interviews • Features into

customer base

Develop • Retention features • Retention messaging • Acquisition credibility

Codify • New buyer persona • Best fit company

Analyze • Successful messaging • Closed won reasons • Identify “at-risk”

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Thank You

www.BedrockData.com

BedrockData

JWMarcus