Marcos Rivera, founder and CEO of Pricing I/O, shares his career journey and myriad lessons learned about pricing, packaging, and monetization best practices in B2B SaaS.
He discusses the challenges and complexities of pricing, including leaving money on the table and the fear of raising prices. He emphasizes the need for a clear strategy, understanding the target audience, and creating valuable experiences for customers. He highlights the importance of data collection and analysis in pricing decisions & provides insights on aligning pricing initiatives with the product roadmap. He emphasizes the role of confidence in pricing & discusses the combination of quantitative analysis and qualitative customer feedback in pricing strategies.
The conversation is packed with insights & concludes with exploration of how pricing & packaging will change against the backdrop of AI.
Takeaways
- Pricing and packaging are crucial for B2B SaaS companies to monetize their products effectively.
- A clear strategy, understanding the target audience, and creating valuable experiences for customers are essential for successful pricing.
Data collection and analysis are necessary for making informed pricing decisions.
- Aligning pricing initiatives with the product roadmap helps drive growth and customer value.
- Confidence plays a significant role in pricing, and mitigating risks can help build confidence.
- Integrating quantitative analysis and qualitative customer feedback is key to developing effective pricing strategies. Pricing is an art informed by science, with judgment playing a crucial role in understanding customer psychology and determining value perception.
- The package establishes value, while the price serves as the exchange rate for that value. Changing one without the other can lead to friction and dissatisfaction.
- Companies often face challenges in pricing and packaging due to limited visibility into customer behavior, the complexity of data and systems, and the trade-offs between development resources and tracking capabilities.
- The future of AI in B2B SaaS presents opportunities for boosting core value, creating new use cases, and driving innovation in pricing and packaging.
- Result-driven software pricing, based on tangible outcomes and value delivered, may become more prevalent as AI enables better tracking and measurement.
Sound Bites
"Pricing on purpose starts with a clear strategy."
"CEO support is crucial for successful pricing initiatives."
"Good pricing requires discipline in data collection and a structured approach."
"Pricing is more of an art informed by science."
"Price is what they pay, and the package is what they get."
"AI may drive companies to start innovating more entry points into their product."
Chapters
00:00
Introduction and Setting the Stage
03:01
Founding Pricing.io and Helping B2B SaaS Companies
06:12
Common Pricing Challenges Faced by Companies
08:10
The State of Pricing and Packaging in B2B SaaS
11:09
Pricing on Purpose: Building a Clear Strategy
13:08
The Relationship Between Monetization Initiatives and the Product Roadmap
17:25
Creating a Pricing Committee and Driving Monetization Initiatives
19:46
Pairing Quantitative Analysis and Qualitative Feedback in Pricing
22:48
Surprises and Lessons Learned in Building Pricing.io
24:46
Building Confidence in Pricing and Mitigating Risks
28:35
Understanding Customer Psychology and Value Perception
36:23
The Relationship Between Pricing and Packaging
42:34
Challenges in Pricing and Packaging for B2B SaaS Companies
46:26
The Future of AI in Pricing and Packaging
51:18
Result-Driven Software Pricing: A Shift Towards Tangible Outcomes