Going through the continual process of trying to understand your customers' wants and needs to align your pricing with their perceived value and willingness to buy will lead to greater brand loyalty over time, boosting your customer retention.
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Lower Customer Churn
If your products or services are priced too high, your customers may feel like they're not receiving value for money and move on to your competitors.
However, the reverse is also true – if your prices are too low, customers may perceive your offering as low quality and look elsewhere for a higher-quality product. Optimizing your pricing to line up with its true value while also considering your target segment's willingness to buy will help keep your customers satisfied and reduce churn.
Better Manage Your Finances
Constantly reprising your SaaS pricing strategy will help you consistently re-evaluate your income and expenses, helping you stay on top of your finances and better manage your resources.
This continual overview will help you make informed albania telemarketing decisions in other key business areas, boosting your growth strategy in the long term.
What a Pricing Update Entails
Carry Out Market Research
When you start to optimize your pricing, you'll want to spend a fair amount of time on market research and analysis, looking at the different buyer personas in your customer base as well as the current shape of your market segment.
Over time, this process will be streamlined as you'll be able to reuse some of the research you gather in future pricing adjustments. Market research is one of the key resources to guide any decisions you make around pricing.
Select Your Pricing Strategy
After adequate market research, you'll need to choose a pricing strategy on which you can base your pricing tiers, and one that fits your individual needs.
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In selecting a pricing strategy, you'll need to consider your buyer personas, customers' perceived value of your products, customer LTV, your competitors' prices, and your growth stage – data that you would have acquired during the research phase.
Check-In With Existing Customers
Chances are your existing customers will not be happy about an increase in pricing, but it will still be helpful to gather their feedback through surveys to gauge their sentiment about your product and how it adds value.
