The author also advises on how to transition legacy customers to the new pricing model, emphasizing that it should be seen as an upgrade rather than a conversion. They suggest a measured approach, giving customers a time frame to make the switch and offering ongoing access to products for those who choose not to upgrade. The article concludes by reminding leaders that pricing should be an ongoing discipline, with packages and prices adjusted as necessary for continuous monetization.
Key takeaways:
- Software leaders should focus on simplicity in pricing and packaging, rather than creating unnecessary microcosms of customers, to drive profitable growth.
- The monetization framework, focusing on licensing, packaging, and pricing, can drive continuous monetization and is more effective than content marketing frameworks.
- Software companies should reduce the number of metrics and evaluate their SKUs to simplify their sales, operational, and finance systems.
- When introducing new packaging and pricing, software leaders should treat the transition for legacy customers as an upgrade rather than a conversion, and allow a reasonable timeframe for the transition.