TL;DR Price outcomes to problems, not usage of product.
I am exploring the question: How to approach pricing if you want customers to happily pay a premium?
Concerning this, I’d love to share an anecdote Ryan Falkenberg, CEO of CLEVVA, gave me yesterday.
The lesson I learned: We’d rather be the standard for a problem resolution than a solution category.
We’ve spent so long in our company’s journey explaining to people why our solution is so amazing, ….and actually, they don’t care.
The category we fit into is virtual agents – and with that, a customer’s mindset would automatically be: ‘Is it a chatbot? Is it like chatGPT? And so on. And so we constantly fell into the trap of explaining why our solution is different and why it is better.
Here’s the thing:
Customers just care about a specific problem you can solve for them. And if you can do it as pain-free as possible, they’re very interested.
Leveraging this requires a mind shift: Completely leave your solution alone.
But once you embrace that, other levers are at your disposal. Here’s how this panned out for CLEVVA:
- We’ve moved away from a software-as-a-service play into offering customers the outcome of our software: Virtual Agents as a Service
- It means we are taking full accountability for our virtual agent, i.e., owning the outcome of our software, as opposed to expecting somebody else to do magic with our software.
- As a consequence, the conversation has shifted.
- Engagement is better
- We’re able to talk to the right customer about the right problems
- And that’s what customers evangelize for us
Creating predictable traction starts by realizing what matters to your customers
Question for you to reflect upon
What would need to be true to start pricing outcomes instead of the usage of your SaaS product?
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