A few years ago the term “growth hacker” became all the buzz in the tech scene. This trend didn’t surprise me since the “grow at all costs” mindset has dominated the startup world long before the “growth hacker” trend started. I understand the importance of growth (especially if you’re a VC backed company) but what stage does the emphasis shift towards efficiency? How many “growth people” do you have in your company compared to operations people? Who is responsible for saving you money vs. responsible for spending your money? I think these questions are important. In this post I’m going to share over 30 ideas on how you can optimize your startup and save your company a huge amount of resources.
The psychology of pricing is more relevant than you’d expect. The fact that some tricks have been used since cavemen drew $9.99 on walls, surprisingly, doesn’t make the tricks less effective today. So today we’ll recall what we know about the psychology of pricing, i.e. the forces that make people perceive the product as cheaper, better, or just make them feel that "the price is right".
Value-based pricing - one of SaaS’s most favorite (and sustainable) pricing schools of thought. Conventional wisdom says that if you tie the price you charge for your product to a value metric that aligns with your product, then you're set for success. However, can any value metric that aligns with your value give you a healthy revenue model? Or do the revolutionary revenue models of Michelin, Google, et al. possess something more? How does this play out in SaaS pricing? If the core value of your SaaS is intangible (like better team collaboration, increased productivity, etc.) how do you tie back your pricing to that value? This post aims to answer all these questions and more.
<p>Pricing is one of the original four Ps of Marketing. Your pricing model goes hand-in-hand with your growth engine. For example, if you plan to buy advertising to drive growth, you'll need a pricing model that generates a customer lifetime value that exceeds your customer acquisition cost. If, on the other hand, you are primarily driving growth through a viral invite system, you'll generally need a fairly low price to reduce purchase consideration friction in your customer acquisition funnel. Beyond supporting the growth engine, price is also a function of the value that customers receive from a product and the cost of alternative solutions.</p>
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