Naomi Ionita: prediction

Transcript context

…So, say that you got a price, you launched with something. How do you think about and how do you suggest folks experiment with pricing changes? And then, what impact have you seen from making a pricing change, either in terms of revenue or growth? Because I know you work with a lot of startups on these sorts of things, so I'm curious. How big of an impact can you see from pricing changes? Oh, it can be huge. Our friends at OpenView do a really good job of pumping out content and doing these great SaaS benchmarking surveys. They did something recently that showed that roughly half of companies that instituted a pricing change saw at least a 25% increase in ARR. So that's a pretty massive step function improvement in your revenue from something that doesn't require massive technological overhaul. I find that most companies regret not doing it sooner. ProfitWell is another group that I have friends at and have a lot of respect for them and the content that they've put out. They did a survey once on I think it was over 500 SaaS companies, and they looked at for a 1% improvement on acquisition, retention, and monetization, how did it impact a company's bottom line? And they found that the impact with an improvement on monetization was 4X that of acquisition. So, this idea of how can you efficiently improve your business monetization is really underappreciated as a growth lever. Definitely something people should be thinking about. That's part of my goal of doing this podcast, is making sure founders are compensated in a way that they deserve. So, let's hope everyone makes a little more money after today. And I've seen a lift upwards of 10X on revenue, but it's sometimes hard to parsh just the pricing change, because usually it can be coupled with big product changes, a rebrand, a lot of PR, the launch of a new plan, like a team or an enterprise plan. So, it's hard to sometimes understand just the pricing change in isolation, but it really can be pivotal. Cool. And when you think through the pricing changes that you've seen, is the impact often from raising the price just broadly? Is it segmenting more intelligently? Is it changing freemium versus paid? Is there a bucket you think of, like "Here's generally where the biggest impact ends up being?"…

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