How Slack successfully rolled out the First Pricing Change -
The month of September was the month that Slack announced the first price adjustment since it was founded in 2014. Slack announced its pricing change through an article in its blog posting during July. Price changes took effect on September 1st.
In this piece we go through various methods Slack used to launch the latest price.
1. To justify an increase in Value
Slack announced its plans with a description of how they've increased the value of their platform. The company immediately appeals to society's belief in fairness. Slack doesn't simply increase the cost due to the rising cost of inflation or other expenses.
2. Create the increase (And your Pricing In General) simple to calculate
The app for messaging uses a seating-based pricing system, making it easy for users to quickly determine how much an increase in cost impacts their expenditure. Slack has increased the cost of their service to $.75 per user/month to monthly Pro Plan members as well as $.58 per month for each user for members of the annual Pro plan. If you know exactly the number of seats you're paying you can easily determine it.
Slack took advantage of an opportunity to improve the free plan it offers by taking away the limit of 10,000 messages as well as five GB of storage limit for free plans, and restricting access to all users up to 90 days.
Kurt thought that their original rules made it hard for teams to know what time they'd hit the threshold. "Now I'm thinking : 'Okay. you've got it!. There's a 90-day window in case I want to preserve the record. It's at the point that I'll need to upgrade to a pay plan."
Kurt said that simplifying their pricing model allows them to not only understand pricing however, but also to market it "When pricing is based upon what people believe to be"I'll have access to an Excel calculator to determine how much it will cost?' It's not the best plan. This slows down conversation."
3. Keep an eye on your worldwide Users
Slack announced price hikes that were in US dollars. They also offered an option to easily monitor the price hikes in other currencies.
If you're dealing with clients who use currencies other than your default, make sure you announce pricing changes in those currencies in order to allow them to make better decisions when in calculating the cost.
4. Incentivize Customers to be loyal
Slack extended their existing rate for customers that renewed early to the end of the year , for a further year. They even fit in the incentive of switching from a month-to-month plan to an annual subscription.
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