The Way Slack has Successfully Rolled Out Their very first Pricing Change
In July, Slack introduced its first price modifications since the company was established in 2014. Slack revealed its pricing changes via an article in its blog on July. The the changes to pricing took effect on September.
In this article we will go over the many methods Slack utilized to successfully launch its latest pricing.
1. Simply denote a rise in value
Slack started its announcement with a description of how they've enhanced the worth of their system. The announcement immediately appeals to general public's faith of fairness. Slack isn't just raising prices due to rising cost of living or the inflation.
2. Help Make the Price Increase (And the Pricing of Your Products in general) Easy to calculate
The messaging application uses a seat-based pricing structure that allows users to see quickly how the cost increase impacts their expenditure. Slack raised their price $.75 per user per month to monthly Pro plan users as well as $.58 per month for users for users on the annual Pro plan. If you know the seats you're paying for you can easily estimate the amount.
Slack took advantage of the opportunity to streamline its free services by removing the limit on messages to 10,000 and the 5 GB of storage limit for free plans, and restricting the access period for 90 days.
Kurt suggested that the original rules made it hard for teams to determine when they'd be at the threshold. "Now I'm thinking "Okay now, I'm done. I've got the 90-day period in case I want to keep that history. Now I'll have upgrade to a paid plan."
Kurt discussed how the easy pricing model makes it simpler to understand the concept of pricing, but also sell the concept "When you set your price on your perceptions of customers that say, 'I'm going have to use the Excel calculator to determine what the amount will cost is it?' That's not a good concept. It slows conversation."
3. Keep track of the world's users
Slack announced price hikes in US dollars but included a link to easily see the prices of different currencies.
If you are dealing with clients who have currencies that differ in comparison to yours, be sure to inform them of price changes in these currencies so that they can have a simpler time calculating the cost.
4. Incentivize loyalty of customers
Slack has offered to increase their current rates for those who renew their plans earlier to extend their plans for an additional year. The company even offered an incentive to switch from a monthly plan to an annual one.
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