The price of b2b subscriptions must increase. But this doesn’t need to damage relationships with customers.
Inflation is a beast running wild and the CFO has mandated big price increases or face big consequences. The account management team digest what they have to bring to the table for their company. They know the customers’ buying teams won’t buy the inflation line on its own. But that’s the line they’ve been given. And if the buying team do swallow it this time, they have a strong feeling it will come back to bite them next renewal cycle.
Sliding doors time…
They go for a price rise.
They sneak in some extra stuff into special terms because no one checks that until the deal is sealed.
They go for a big price rise. They smile when the buyer team threatens to escalate.
Here comes the senior person. They know what this person wants. How they need to improve performance. How they talk.
They share how other customers are overcoming challenges. They know their stuff. They talk business outcomes. Not features. Not pounds, pence, dollars and cents.
They figured out what they can give before they take. The kind of stuff that matters. And it’s already got the rubber stamp.
They tell the story of the product roadmap. It pops.
The check list for take two:
– know the customers who see value in the service
– figure out the recurring problem people need solving
– know how you solve for that
– craft the product features and packages that people are willing to pay for
– make sure teams land the price rise by aligning to customer value
– create an expansion runway with cross/upsell and add on
– get on the front foot and trim the fat from the service for your customer, before they do it for you
– figure out the best packages to find, keep and grow logos by studying subscription results
– review bundle/unbundle opportunities to increase the spend per account
– launch new products based on priority outcomes
– kill product that isn’t needed