PRODUCT MARKETING
Positioning & Messaging Strategy
Pricing & Packaging
Your pricing and packaging strategy determines how your product is presented and monetized. It should align with customer expectations, market demand, and perceived value.
Why it's Important
Directly impacts revenue and profitability.
Influences customer perception (premium vs. affordable).
Helps in market segmentation and targeting.
Affects customer acquisition, retention, and expansion.
How to Implement
Conduct market research to analyze competitor pricing.
Determine cost structure and pricing model (subscription, one-time, freemium, etc.).
Align pricing with value perception and customer willingness to pay.
Test different pricing models and tiers.
Ensure pricing supports business goals (growth, profitability, market penetration).
Available Workshops
Price Sensitivity Testing to gauge willingness to pay.
Value-Based Pricing Workshop to align pricing with perceived value.
Competitive Pricing Benchmarking to assess positioning.
Freemium vs. Paid Model Analysis to determine the best go-to-market strategy.
Customer Willingness to Pay Surveys to validate price points.
ROI Calculator Development to show value justification.
Deliverables
Pricing strategy document with rationale and market research.
Pricing tiers and packages based on customer segments.
Internal sales guide for handling pricing objections.
How to Measure
Customer acquisition rates at different price points.
Churn rates based on pricing changes.
Conversion rates on pricing pages.
Customer feedback on pricing satisfaction.
Real-World Examples
Spotify
Freemium model converts free users to premium subscribers.
Netflix
Tiered pricing based on video quality and user profiles.
Adobe Creative Cloud
Subscription model with tailored plans for individuals, businesses, and enterprises.
Get It Right
Base pricing on customer value, not just cost.
Offer clear differentiation between pricing tiers.
Regularly reassess based on market feedback.
Align pricing with customer willingness to pay.
Test pricing changes before a full rollout.
Don't Make These Mistakes
Underpricing, which reduces perceived value.
Overcomplicating pricing with too many tiers.
Ignoring customer feedback on pricing.
Not testing pricing before launch.
Failing to adjust pricing as market dynamics change.
Provided courtesy of Catherine St Clair, Product Marketing Manager, St Clair GTM Consulting