organizational development obsessive | finance-gone-tech-exec | how to lead and get real results (even) in a millenialized workplace | managing difficult personalities (your reports, or your bosses)
It’s all about ensuring the value delivered becomes mission-critical to the end-user team. Once other solutions are replaced or surpassed by the efficacy and ease of use of your platform, there are ripple effects that impact later tech evaluations and even change staffing plans over time. Once you reach that point, it’s very easy to require a higher ongoing price.
Being able to effectively tie the product to revenue is a prerequisite for this strategy. Many organizations choose to set initial step-ups in price tied to either user growth (not recommended) or levered to company growth / output growth over time. Transparency about this likely price increase becomes less important as orgs become larger. Smaller clients will require much more work to increase price and it’s not always going to be worth the step-up due to churn risk and ROI on the upsale efforts.
Hope that helps!