I had the pleasure of speaking with the jovial JJ Rorie, host of the Product Voices podcast. We went deep into understanding value, eliciting value from customers, and a bunch more tools to help Product folks sharpen their SaaS Pricing saws.
In this podcast, you’ll learn:
- How to understand and drive productive conversations around value
- How to measure pricing effectiveness in your SaaS business
- How to find your value metrics
- What to do first if your pricing isn’t working
- and much more
Listen to the full episode below.
Notable Quotes from the Episode
The concept of value is one of the most misunderstood concepts. It’s so foundational to pricing that if you don’t really understand it: 1) conversations will just get mired in people talking past each other, which is not helpful, and 2) it sets the foundation for the overall framework for how we think about pricing.
We live in a market economy, and in a market economy, the value that you can price is set mainly by competitive alternatives. Economic value helps us understand: What other alternatives would customers use to help us help them achieve that outcome?
Understanding value comes from a process: asking customers questions about their business and becoming intimate with their operations. How do they create value for their customers? And then, what is the value chain? What are the processes by which that value is created?
At the end of the segmentation exercise, you have to know two things, who customers are and what customers want. And the question becomes, where do we start?
Pricing is behind the curve compared to Product Management. Suppose the role of a product manager is the walking persona of the product in the company, taking in all of the stakeholders’ perspectives, including the customers, and making the decision to help drive the business forward. There’s not that person for pricing.