Pricing Tips
Pricing Tips

Tip 8: Customer Distribution Across Plans/Packages

Analyzing the distribution of customers across your plans or packages can be a powerful tool for optimizing your pricing strategy and maximizing revenue.

In this episode, our experts discuss the importance of regularly reviewing the percentage of customers on each plan, uncovering hidden opportunities for growth and optimization. Learn how to identify trends, adjust your packaging, and strategically target customer segments to drive increased revenue. With practical advice and real-life examples, this episode will empower you to make data-driven decisions that enhance your business's bottom line. Don't miss this essential guide to balancing customer distribution and optimizing revenue!

Welcome to 20 days of pricing tips—part 8. I’m Jordan, a member of the pricing team and I’ve worked on 25 different pricing projects. Today we're breaking down the distribution of customers across your plans or packages.

Do you regularly review what percentage of your customers are currently on each plan you offer? How many on a free vs. paid plan? And at what price? Doing so can uncover huge opportunities to increase revenue and optimize packaging.

One common example is having far too many customers on the most basic, lowest price plan. This can indicate few things... most likely you're giving away too much value in the base plan so customers see no reason to upgrade. Similarly, customers may want to upgrade for more functionality but the features you've provided in higher tiers aren't compelling.

Alternatively, your plans may be priced or structured incorrectly to achieve a clear upgrade path. In all these cases, it's important to understand how many customers you have on each plan and what the potential revenue impact could be from moving them up.

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