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Exploring B2B Product Development Strategy and Monetization Models
In B2B product development, the focus lies on driving growth and retention through upsell opportunities that complement the core product without diminishing its usefulness. Implementing a pricing strategy that involves upsells and add ons, gradually integrating them into the core product while continuously introducing new features and additional upsells, enables market testing of the product's value and commercial appeal. This approach enhances the ability to identify which features directly contribute to monetization. Unlike feature bundles where only one feature generally drives conversion, add ons offer a clearer link to increased monetization. Therefore, exploring alternative monetization methods beyond cost-plus pricing for AI products can be beneficial in optimizing the full growth loop and business model. By considering product integration and add ons across different platforms within one ecosystem, such as bundling Loom with Jira, companies can enhance the overall value proposition of their products.