The Current State of Pricing Paradigms in Customer Success
Hannah Yoon
Data Journalist, Industry Insights
February 1, 2024
Overview
The process of determining pricing presents a multifaceted challenge for companies, necessitating a delicate balance between the pursuit of maximal profitability and the preservation of an established market position. Various pricing strategies, encompassing both traditional and more forward-thinking approaches, as well as cost-centric and customer-centric methodologies, can yield competitive advantages and disadvantages. The selection of an appropriate pricing strategy stands as a pivotal determinant in the success or failure of the company.
The 2023 Monetizing Customer Success survey examined the impact of different pricing strategies, including cost-based, market-based, value-based, and outcome-based pricing strategies. This paper aims to provide a high-level overview of the survey findings.