Is Raising Prices During a Recession Insane? The 4 Data Points You Need to Make the Call
Raising prices during a recession is insane, right?
Or is it?
Here’s the thing… there’s only four data points you need to make the call. No digging required…
🔻 Low churn - shows customer loyalty
Segment this across plan and avatar to get even more confidence on who can handle an increase.
📆 Full sales calendar - indicates demand
Raising prices will weed out tire-kickers and give more people access to your product that have a higher willingness to payWillingness-to-PayWillingness-to-pay (WTP) is the maximum amount a customer would pay for a product or feature. In B2B SaaS, WTP research helps set price points that capture value without exceeding what customers find acceptable.Read more →.
🤝 High conversion rate - means customers want what you offer
Look for 30% conversion in your demos or ~10-15% or higher for trial-to-paid.
🌟 Good NPS score - shows loyalty and customer satisfaction
Aim for a score above 25, though this can be highly variable depending on industry, and persona.
So remember…
Low churn, full sales calendar, high conversion rate, and good NPS score are signs it's time to raise prices.
Take a few minutes and pull these numbers and see where you land.. is it time to for you to raise prices?
What else do you want to know about raising prices? Continue the discussion on LinkedIn here.
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