Value metrics are essential for optimizing your pricing strategy, but it's all too easy to get them wrong.
In this episode, our experts discuss three common reasons businesses struggle with value metrics, including tying them to the wrong lever, offering too few plans, and being unable to identify them in the first place. Learn how to avoid these pitfalls and establish strong, effective value metrics that drive customer satisfaction and revenue growth. With practical tips and real-life examples, this episode will help you navigate the challenges of value metrics and set your business on the path to success.
Welcome to 20 days of pricing tips—part 20. I’m Alexa a member of the pricing team and I’ve worked on over 36 pricing projects. Today we’re covering value metrics, and the three reasons companies get them wrong.
First up - you tie your value metric to the wrong lever. For example, if your customers use your tool to send emails and your upgrade lever is team members, well those two don't match.
Second - you only have two or three plans. Think of all the different types of personas and companies that use your products. I bet you just thought of more than three. You should have a plan that ties to all your buyer personas.
And lastly, my favorite - you can't even find your value metrics. Think about it, if you're evaluating two different companies and one doesn't even have a value metric or pricing page. Well, you are most likely being taken off the table for the three competitors that do.
Thanks for checking out our pricing tips. If you want to connect with our pricing team email me Patrick@profitwell.com and we’ll send over the intro.