How Customer Success Can Have a Voice in Pricing and Packaging

Episodes of the Success/ful Podcast are available on:

No one understands customer needs and the value a product delivers better than Customer Success. They are on the frontlines, interacting directly with users and receiving constant feedback. Yet, pricing and packaging decisions are often made without leveraging this invaluable customer insight from CS.

Andrew Michael, entrepreneur and host of Churn.FM, advocates for giving CS teams a prominent voice when it comes to pricing and packaging. In the latest episode of Success/ful: Winning Ideas From the World of CS and Beyond, Andrew shares why he believes this approach is a fast track to creating pricing models that increase satisfaction, retention, and overall success.

Listen now to hear:

  • A deep dive into pricing and packaging strategies (02:30)
  • The importance of Customer Success in pricing decisions (11:00)
  • Strategies for rolling out new pricing models (16:05)
  • How to navigate challenges with rollouts (18:55)
  • And much more…

Guest Quotes

Andrew on viewing pricing as a flexible and evolving aspect of the product:

“The best way to think about pricing and packaging is that it’s just another part of your product—it’s a feature of your product. As you would experiment and feel comfortable with changing your onboarding experience or updating a feature, you should be comfortable with making changes to pricing and packaging. The first thing is getting your mindset changed and realizing, ‘Okay, this is a part of what we do as a product, our product evolves, our value evolves, and so should our pricing and packaging with it.’”

Andrew on why you should avoid pricing models that discourage usage:

“The metric that you select should not be restrictive in terms of allowing customers to extract value. I think for a long time, there were certain analytics products that used to charge in a restrictive manner that would limit product usage. You never want to limit your users or have users thinking twice about getting more value from your product because the pricing is going to be the main driver. It's important as CS to have a good understanding of that as well, and to influence those strategies.”

Andrew on leveraging Customer Success to prevent churn:

“This is a good area and exercise where Customer Success can come in and have a seat at the table when making decisions around pricing and packaging. Because, ultimately, Customer Success has a much closer pulse and understanding of customers' appetite for pricing and packaging. A good exercise I've seen companies employ is going through an exercise and saying, ‘Okay, looking at our book of business today, let's first off start with our most engaged customers, our power users, and grading: Who do we think is at risk of churning based on these price changes and based on the relationships that we have with our customers?’”

Links and Resources

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Episodes of the Success/ful Podcast are available to listen on:

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