Managing the balancing act of pricing | Vaishnavi Ravi, Founder of Market Maven

This week on Product Marketing Life, Mark is joined by Vaishnavi Ravi, founder and consultant at Market Maven, to discuss her experiences of leading major pricing changes. In their discussion, Vaishnavi advises treating pricing as an iterative process, requiring continuous testing and learning. She also stresses the importance of deeply understanding your customers and audiences as being critical for positioning and strategic direction. Overall, the discussion provides an inside look at the considerations and cross-functional collaboration vital for a successful pricing change.

Key takeawaysPricing changes require balancing multiple factors like value delivered, customer impact, and business metrics. It's an iterative process of testing and learning.Research involves analysts, sales data, customer reactions, competitor pricing, and secondary research on pricing best practices.Important metrics to track include ARR, average revenue per user, deal sizes, customer acquisition costs, and churn.Change management is required to enable sales with the rationale and empathy for customers, staged rollout, and ongoing tracking of metrics and fine-tuning.Focus on truly understanding your customers and audiences will continue to be critical for product positioning and company direction.