Slack's Journey to Fair Billing and Effective Pricing Strategies

By 2014, Slack saw consistent weekly growth and recognized that once teams started using the platform, they rarely stopped. There were two main growth drivers – acquiring new customers and expanding in existing customers – and two main tensions Slack faced, particularly the hybrid use of multiple communication tools.

To address these tensions, Slack adopted three key pricing principles: simplicity for new customers, fairness for existing ones, and speed for deployment. Specific tactics like starting with a high pricing point, avoiding unlimited user deals, and offering credits instead of discounts were employed. The highlight is the fair billing policy, which ensured users were only charged for active usage, boosting customer trust and simplifying billing processes.

The story winds up with a nod to Slack's long-term approach to customer satisfaction and its impact on their sustained business growth.

00:00 Introduction: A Slack Story by James Sherrett

00:22 Understanding Slack's Growth Levers

01:12 New Customers: The First Growth Source

01:58 Expansion of Existing Customers

03:32 Tensions in Slack's Growth Model

05:50 Principles of Slack's Pricing Strategy

08:21 Tactics for Implementing Pricing Principles

15:49 The Fair Billing Policy Origin Story

21:40 Conclusion: Reflecting on Slack's Journey and Lazy Computer Programmers

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