Reilly Chase knew that raising prices would not sit well with all of his customers. But he also realized he had to focus on the best ones in order to grow his business.
"In January 2020, I decided to run a pricing experiment by increasing the price of the minimum plans at HostiFi from $19/month to $49/month for new customers. I felt that the business and product have matured significantly in the last year and that they provide enough value to justify the price increase."
To overtake an entrenched competitor, you can't just hope to outsell them. You need to define a new category and dominate it. To do that, Andy Raskin argues that you have to name a new game that your customers can win by using your product.
"[O]nce someone buys into your new game, it becomes their orthodoxy. They become fiercely loyal to it as an organizing principle for how they act in the world. Until someone shows up with another story about an even newer game."
What are the principles shared by successful product-led companies? Mario Araujo compares some of the most iconic SaaS companies to present what are the common value they rely on to dominate their markets.
"Recently, we wanted to deep dive into product-led growth and unravel what it takes to do it right. So, we carried out some investigative research on the companies that are leading the way when it comes to product-led growth. From our findings, we distilled four principles that have been key to their success."
Every business — from a 5-person investment company to the likes of PayPal and Peloton — can be distilled into a simple equation, says Brett Bivens. It is a simplified set of factors that the firms partners can use day to day to make decisions.
"A good business equation meets three straightforward criteria:
1. It focuses on isolating controllable high-leverage inputs
2. It is deeply tied to value delivery (user engagement)
3. It maps directly to a company's accumulating advantage"