Scale Your SaaS 304: Pricing Mistakes that Cost You Lost Revenue - with Mark Stiving
EPISODE SUMMARY
Understanding the intricacies of pricing and value proposition is crucial to successfully growing a SaaS business. In this new episode of Scale Your SaaS, host and B2B SaaS Sales Coach Matt Wolach sat down with Mark Stiving, the founder of Impact Pricing, who shared his valuable insights on how software leaders can revolutionize their value proposition and dominate the market. Read on to learn more about the pricing mistakes that cost you lost revenue.
PODCAST-AT-A-GLANCE
Podcast: Scale Your SaaS with Matt Wolach
Episode: Episode No. 304, “Pricing Mistakes that Cost You Lost Revenue - with Mark Stiving”
Guest: Mark Stiving, Founder at Impact Pricing
Host: Matt Wolach, a B2B SaaS Sales Coach, Entrepreneur, and Investor
Sponsored by: Leadfeeder
TOP TIPS FROM THIS EPISODE
Unlock the Power of Value
In pricing SaaS products, Stiving emphasized the importance of recognizing the true value a product brings to the customer. He stressed that understanding customer value and harnessing it through effective pricing strategies is the key to generating invincible profits.
Identify and Quantify Value
Stiving introduced the concept of a "value table," encouraging businesses to identify their most marketable product features. The challenge is to then determine the specific problems these features solve for customers. Through a systematic approach to understanding customer problems, software businesses can quantify the results and ultimately assign a dollar value to the solution.
Leverage Customer Growth
Stiving highlighted that while many software companies focus extensively on acquiring new customers, the real potential lies in growing existing ones. By adopting a mindset of 'win, keep, grow,' businesses can explore four avenues for customer growth: raising prices, upselling, cross-selling, and usage-based pricing.
EPISODE HIGHLIGHTS
Strategic Pricing for Sustainable Growth
Addressing the perennial concern of raising prices without causing customer churn, Stiving offered a practical strategy. By incrementally raising prices for the top tier of customers who derive the most value, businesses can carefully monitor the impact on churn. This approach ensures that the value delivered justifies the price increase, creating a win-win situation for both the business and its customers.
Build a Value-Based Culture
The key takeaway for software leaders is to cultivate a value-based culture within their organizations. Stiving advocated for a continuous focus on understanding customer needs and integrating this perspective into every decision. By placing the customer at the center of business considerations, companies can foster long-term success.
Take Action
For software leaders seeking to refine their pricing strategies and value propositions, Mark recommends exploring the framework of the valuable features available on Impact Pricing's website. Additionally, leaders can gain further insights by connecting with Stiving through a consultation or discovery
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