What offer and pricing actions have you taken in response to the COVID-19 crisis?
Members have been asking this about offers and pricing updates, changes and market withdrawals during this time. The quick poll is designed to capture these trends. Feel free to check it out.
https://www.surveygizmo.com/s3/5568951/TSIA-Rapid-Research-Response-Offers-and-Pricing-Impact
Best Answers
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We are running a promo for net new customers which includes some products in the bundle FOC for 12 months. In addition, customers who renew during this time period get free access to products currently not included in their bundle.
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We are running a Professional Services sales push of offerings which can help our customers increase efficiency during this remote-work environment - these are smaller projects, offered fixed fee, with allowance of higher than normal discounts. We anticipate it will generate near term billable hours to replace hours which have been delayed due to COVID-19.
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I quite like what Hubspot has done, if you Google 'Hubspot Covid 19 pricing' you will find their page.
Focusing in on the pricing actions, HubSpot did three key things:
- They reduced prices for small businesses (note that this is targeted on one group and not a broad brush approach). A planned price increase has been paused. This offer is for 12 months—long enough to hook customers and reduce churn.
- They relaxed usage limits. HubSpot’s pricing model uses the number of emails sent as a fence (a way of guiding buyers into the best tier or package). It frames this in terms of helping “businesses keep in regular contact with their customers and communities.” This picks up on economic (one can calculate the economic value of an email sent through HubSpot), emotional (stay in touch with your customers) and community value drivers. Note that this is a short-term, 90-day measure.
- They’re offering free tools to all users. “To help businesses adapt quickly, we’re making our paid Meetings functionality, Quotes, E-Sign, and 1:1 Video tools available for free for 90 days from activation.” Again, note the 90-day boundary.
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Answers
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@Melanie Gallo sounds like a great experiment. Do share the results you see from seeding the customer with the additional functionality.
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@Laura Fay Although, I can't share specific results, we did have strong double digit increases in April over LY.
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@Melanie Gallo Good to hear.
Interesting on the renewal action. Love to hear about others are adding incentives to the renewal offer?
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We have been doing a fair bit of research into this at Ibbaka. The most common things we are seeing are that people are modifying the terms of trade (especially payment terms) 40% and layering in additional professional services 37%. Actual price level changes are less common, 14%. Five percent of people have actually increased list prices!
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Covid has actually created more demand for digital products sold via ecommerce for us, so we're actually seeing a significant uptick in sales as result. In terms of new service offers we are looking at creating more focused offerings targeted to the needs of a specific subset of personas to reduce client complexity to adopt our technology.
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