The goal of this exercise is to define a strategy to maximize your product's revenue. This is a process that your team should continually evaluate and optimize.
These three aspects should work together to highlight your product's core value. In the pricing chart your team will fill out at the end of this exercise, the positioning will follow along the horizontal axis while the packaging will follow along the vertical axis. Pricing will incorporate both positioning and packaging to align your product's core value with the target customer's willingness to pay.
Most important in your strategy is who you're targeting. Aligning your product's positioning with the right customers will make it easier to pinpoint the price they're willing to pay.
Combining the right variety of features will help highlight your product's core value. Find features that are attractive to each target customer's main challenge(s).
Pricing should follow a logical pattern along the horizontal access to align both value and the customer's willingness to pay. More features = higher price.
Pricing isn't related to any specific part of your business. It is related to every part of your business. To fully understand your customers, product-market value and business goals, you should build a pricing advisory board from these core departments to make sure you get input from all parts of the business.
Add your notes below (or invite team members to edit.)
Your marketing advisor will understand the user personas that you are targeting and will be particularly involved with the positioning of your pricing strategy.
Notes:
The sales advisor will uncover common questions and objections made by potential buyers. Knowing where buyers hesitate will help define a pricing strategy to convert customers and close sales.
Notes:
The product team builds the features that deliver the core value to your target customers and should be heavily involved in the packaging of your product.
Notes:
The executive team including the CEO and other financial decision-makers will analyze the information from each of the other advisors and arrive at a final positioning, packaging, and pricing structure.
Notes:
Identify at least 3 buyer/user personas to define your highest-value customers. These personas will help formulate the different tiers in your pricing strategy. Duplicate the persona canvas to create more.
"A quotation that captures this user's personality."
Introvert
Extrovert
Thinking
Feeling
Sensing
Intuition
Judging
Perceiving
Trait 1
Trait 2
Trait 3
Trait 4
The bio should be a short paragraph to describe the user's journey. It should include some of their history leading up to a current use case. It may be helpful to incorporate information listed across the template and add pertinent details that may have been left out. Highlight factors of the user's personal and professional life that make this user an ideal customer of your product.
Remember - you may modify this template, remove any of the modules or add new ones for your own purpose.
Incentive
Fear
Growth
Power
Social
Traditional Ads
Online & Social Media
Referral
Guerilla Efforts & PR
Identify your unique value proposition and the main features that provide value for your target personas.
What is the crucial problem faced by your consumers? Capture their central frustration.
What is your solution to consumers’ problems? Present the defining elements (features) of your service: what makes it the top tool for addressing consumers’ needs?
This message should explain what you do, how you are different, and why you are worth investing in. What is your promise to consumers? Zero in on the heart of your service and highlight what stands out about product you provide.
How do you stand out from competitors? What puts you ahead of the pack? Why should consumers have confidence in your service above others?
After creating your personas and identifying your key value metric, you're ready to pinpoint the actionable data that aligns your product's value with the customer's willingness to pay. What did you find from segmenting your personas? Which features do your personas value most? Which features are least valued? What price would each persona consider too high? Too low? How much does it cost to acquire each customer? How much revenue will each persona add over the lifetime of their subscription?
Feature 1
Feature 2
Feature 3
Feature 1
Feature 2
Feature 3
Feature 1
Feature 2
Feature 3
Feature 1
Feature 2
Feature 3
Feature 1
Feature 2
Feature 3
Feature 1
Feature 2
Feature 3
WTP
CAC
LTV
WTP
CAC
LTV
WTP
CAC
LTV
Add a tagline that aligns your UVP with this demographic
Add a tagline that aligns your UVP with this demographic
Add a tagline that aligns your UVP with this demographic
Add a tagline that aligns your UVP with this demographic
willingness to pay**
Main Value Metric
Secondary Value Metric
Secondary Value Metric
Secondary Value Metric
valued features***
willingness to pay**
Main Value Metric
Secondary Value Metric
Secondary Value Metric
Secondary Value Metric
valued features***
willingness to pay**
Main Value Metric
Secondary Value Metric
Secondary Value Metric
Secondary Value Metric
valued features***
willingness to pay**
Main Value Metric
Secondary Value Metric
Secondary Value Metric
Secondary Value Metric
valued features***
*The demographics should summarize each persona into a single word that best describes that customer: a freelancer, a small business, a growing company, or a large enterprise.
**The price reflects each demographic’s willingness to pay, which increases with the larger demographics and value metrics.
***Valued features should be packaged according to the preferences of each demographic. The freelancer persona only needs quick and easy access to the product, while an enterprise client may need more customized features and priority support.