The Hidden 10%: Why 95% of SaaS Companies Are Leaving Money on the Table | Krzysztof Szyszkiewicz | S5 E9
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Here are the core areas we discuss in today's episode:
1: The Discount Epidemic: Your First Revenue Leak
Krzysztof opens by revealing the most common way companies hemorrhage revenue without realizing it, discount management that has spiraled out of control.
"The first thing that we see, and surprisingly, both in PLG and SLG companies, is discount management so frequently. There was a Black Friday. There was something in your solution not working. So you decided to grant your customers a discount for 3 months that has never been sealed after afterwards."
2: The Grandfather Trap: When Loyalty Becomes Loss
Krzysztof addresses the emotional challenge many founders face with early customers who helped them get started but are now paying outdated prices while receiving significantly more value.
"If you find yourself in the situation that after 5 years you still have those first customers. Trust me, they most likely really really like your product. And since they've been either the early adopters or the innovators. Most likely they've been seeing, you know, the advancement that you've like the progress that you've done."
3. The Churn Myth: Why Price Increases Don't Kill Customers
One of Krzysztof's most counterintuitive insights challenges the widespread fear of customer churn from price increases.
"The churn increase that we see if we increase the prices with good communication. If it's a fair increase when you talk about the value, if you give them some time if you act as a human... the churn increase. That we see is minimal. Right? I'm not saying that the churn is not happening. Of course it does. Nevertheless, I haven't seen the situation so far that clients were not better off from price price increase."
4. AI Pricing: Evolution, Not Revolution
Krzysztof provides a nuanced perspective on AI pricing models, arguing they're more evolutionary than revolutionary when viewed through the lens of existing industries.
"The output based models, the usage based models. The success based models were here for quite quite a while. So imagine the marketplace, or like booking.com right booking.com is basically a success model... If the booking was successful for putting your room or your hotel in front of their buyers. They are booking through booking, booking receives the and the Commission."
5. Add-Ons vs. Discounts: The Strategic Choice
Krzysztof concludes with the fundamental strategic choice every company faces: building value through add-ons or destroying it through discounts.
"When you think about this. And when you look at the research. We all focus on sales marketing, growing in volume. Then frequently we also streamline our costs to make sure that we are efficient. But then pricing is always like this, cousin that nobody wants to talk about."
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