The anatomy of a good pricing plan
Pricing is one of the most powerful levers to transform a good product into a good business. A key set of metrics such as profitability, average revenue per account, customer lifetime value, and customer retention are all driven by your pricing. The key to pricing is to design the pricing plan that will drive acquisition, monetization, and mobilization all at once and most businesses have three levers to do that: The pricing structure, pricing model, and the pricing window.
Getting pricing right means identifying the pricing structure, pricing model, and pricing window, that drives acquisition, monetization, and mobilization - all at once. That is what it takes to make it in the market. The Pricing Canvas ™ is a great tool to figure out how to achieve that kind of alignment. The Pricing Canvas ™ not only helps you develop the products that people will actually buy but also align your revenue model with the true dynamics of your buyers, users, and market.
Does your pricing plan align your offerings with the willingness-to-pay of your segments? Do you have the right pricing metric in place? Can you mobilize customers to higher-value plans as their adoption and utilization of your offerings change?