Hey all,
Apologies if this is not the correct forum, but I was looking or advice on pricing strategy and how it relates to existing customers, so I assumed that falls under Marketing questions.
We have a software-as-a-service product, with both monthly and annual recurring subscriptions.
Pricing has been the same for a long period of time, however we've gotten some competition lately that is significantly lower in price and it's costing us too many customers. It's a fairly niche market, so it's basically us and them.
Since - unfortunately - we're not yet beating them in feature richness, the least we can do for now is not to be more expensive than them while we play catch-up on the feature front.
My main question is, how do we introduce lower pricing and deal with our existing customer base?
We've run promotions before to attract customers, however that's not what we're trying to do now, we really need to lower our regular pricing to remain competitive and not just get short term members.
Is it acceptable to keep existing customers at the old higher pricing while new customers are charged less?
Is there any way around having to lower prices for all existing customers?
Thanks
Martijn
Apologies if this is not the correct forum, but I was looking or advice on pricing strategy and how it relates to existing customers, so I assumed that falls under Marketing questions.
We have a software-as-a-service product, with both monthly and annual recurring subscriptions.
Pricing has been the same for a long period of time, however we've gotten some competition lately that is significantly lower in price and it's costing us too many customers. It's a fairly niche market, so it's basically us and them.
Since - unfortunately - we're not yet beating them in feature richness, the least we can do for now is not to be more expensive than them while we play catch-up on the feature front.
My main question is, how do we introduce lower pricing and deal with our existing customer base?
We've run promotions before to attract customers, however that's not what we're trying to do now, we really need to lower our regular pricing to remain competitive and not just get short term members.
Is it acceptable to keep existing customers at the old higher pricing while new customers are charged less?
Is there any way around having to lower prices for all existing customers?
Thanks
Martijn
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