We all know that price increases are a reality of life, particularly in the challenging times that we live in right now. However, some companies seem to want to make some ridiculous price increases and push their loyal customers too far. This blog post is not supposed to be a rant, but it might end up being one anyway.
Customer Loyalty
I was always told that customer loyalty is something that should be carefully preserved, especially when you consider the costs associated with customer acquisition. In SaaS companies the churn rate is one of the key business metrics that we track, and happy customers help drive expansion opportunities. It is therefore a huge surprise when you find a company that introduces huge price increases to their customer base with little or no consideration to their loyalty or any added value..
Price Rises
As I mentioned above, prices will almost always increase over time for most products. Companies will add new features and capabilities, but we must never forget that people buy based on the value that they get from a product or service. If the new capabilities offer no value to them then there is little to justify accepting the price rise. This is even more apparent when a ‘new’ capability is actually fixing a product flaw but dressed up as something additive. Oh – and saying that you are adding ‘AI’ to the product does not count, not unless you can demonstrate additive value !
Building Trust
In a presales environment we are always focussed on building trust with our customers, handling difficult situations and ensuring that our customer recognise the value that we are creating for them. As we build new and improved products, change our engagement models and pricing structures, just asking the question “how does this help my customer?” should be a starting point with the conversations with the Product Management team so that we ensure great market fit.
So what about my particular challenge ? I have been using Evernote for over 11 years, first as a free account user and then on a paid subscription. Two years ago my subscription was £33 per year. This year the renewal is £80 – a 142% increase in 2 years – for a note taking app. Yes – I know that they are talking about fixing this and adding that…… But I don’t need AI for taking notes. It is time to make a call on this and there are many other solutions available.
My advice to Evernote – Don’t alienate your loyal customers with ridiculous price increases that offer little to no value. It’s a “No” from me !
Blog Links:
Should You Change Your Job ? : https://thepresalescoach.com/blog/should-you-change-your-job/
Develop Yourself and Your Career : https://thepresalescoach.com/blog/develop-yourself-and-your-career/
