Eoghan McCabe: commitment

Transcript context

…120 cents. Okay. So, there's a lot of vision here if this is going to get to a place where this actually will be great and affordable. It's really funny. We charge 99 cents to resolve tickets, customer problems, and we have a higher resolution rate than anyone else, and we are proud of that and we obsess over that. It is the metric by which these agents are assessed, and we wanted our revenue to be 100% aligned with the value that they attained because we had all this scar tissue from pricing prior that felt unfair to customers. So, we said, what's the most fair that we can possibly find? Now, when we did all our research, we found that many SaaS businesses were spending between 20 and $30 per ticket resolved. We were spending 22. Now, consumer businesses, maybe they go down to $5. We were thinking, can we charge $10? That seems fair. It's half price. Can we charge $5? Can we even charge two and a half dollars? But early on we started to sense that people just wouldn't value the digital work as much as the human work, even though the digital work is better, more consistent, always available, makes the customer far happier. And so we actually started to lean into a price that we thought would be was the nexus between us earning the most and it being the most palatable. We basically said that if someone is not prepared to pay 99 cent for us to rapidly and elegantly perfectly and excellently solve their customer's problem, we need to wrap this up. We don't have a business here. So, that was where the 99 cent came from. I always believe that that pricing should come from value and not from costs. The cost is our problem. We just had this sense and intuition early on that this thing will get cheaper and it got a lot cheaper. The margin moves around, but we make a margin that makes this more than worth our while, and we know our customers get an excellent deal and are able to deliver to their customers a level of service that they never could before. It's a very clear pitch. We just had Madhavan the podcast and the pricing expert, and he has this phrase, beautifully simple pricing is where you want to get to. Also, he's a huge fan of outcome-based pricing, which is what you're describing here, where you pay for an outcome. So, you guys are in the magic quadrant of his pricing advice.…

Stored transcript either side of the excerpt. The highlighted words are the published quote; the surrounding text is unedited source, never generated.