We recently finished a major pricing exercise with a start-up in the enterprise software space: tuning up their prices, improving their upgrade model, and looking at alternative pricing metrics (i.e. what to meter when quantifying the customer’s usage). A great opportunity to match quantitative models against actual customer behaviors.
During the engagement, the client’s sales team identified some real-world messiness that we (as product managers) would prefer to ignore: high-end customers who demand enterprise-wide licenses – instead of limited-use licenses tied to volume. These are sometimes called “all you can eat” or AYCE deals. Let’s describe the situation, then explore a few of the messy conclusions. Continue reading
The Pragmatic Marketing Framework has guided product managers for more than 15 years. Periodically – and very carefully – Pragmatic Marketing updates it to align with current best practice.