Why we saw negative discounting when we switched to a platform play | Johnny Cheng (ClickUp, Marketo)

Episode 5 November 10, 2023 00:31:40
Why we saw negative discounting when we switched to a platform play | Johnny Cheng (ClickUp, Marketo)
Street Pricing with Marcos Rivera
Why we saw negative discounting when we switched to a platform play | Johnny Cheng (ClickUp, Marketo)

Nov 10 2023 | 00:31:40

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Show Notes

Welcome to Street Pricing, the only show where proven SaaS (Software as a Service) leaders share their mindset and mistakes in pricing so we can all stop guessing and start growing. Street Pricing is hosted by Pricing I/O CEO and Pricing Coach, Marcos Rivera, sought after slayer of bad pricing. With 20 years of pricing expertise, he has helped price over 200 SaaS products and coached over 100 SaaS CEOs and counting. From the streets of the Bronx to CEO, Marcos wants to take the guessing out of pricing.  

Today’s guest is Johnny Cheng, Senior Director of Pricing and Packaging from ClickUp.

Johnny talks about his beginnings at Marketo as Head of Pricing and Packaging. (3:10) Johnny took a look into the packaging and rebuilt it to better serve the customers. Selling the right value, to the right customer, in the right way. Johnny discusses how he overcame two major hurdles. (7:15) Those two hurdles were building a market site and changing the model and framework. Creating the right tools for sales was helpful for this. He talks about his proudest moment at Marketo, where he launched the new model at the same time as the old model was still available. (12:00)

Marcos and Johnny talk about the results for the new model launch. (16:12) The custom-made plans helped with conversion rates. Johnny discusses his first interaction with Marcos and how he received a ‘5 out of 5’ assessment. (17:53)

Marcoa and Johnny talk about why Johnny came to ClickUp and how it is the fastest growing PLG company. (19:37) They discuss the “secret sauce” of the company, combining hard feature pay walls with usage pay walls. (23:44) Marcos tells listeners with “taste of toggle” means.

Johnny talks about his hopes for the future of pricing and packaging at ClickUp. (26:38)

Marcos and Johnny close out the show by discussing Johnny’s favorite song growing up “Gangsta’s Paradise” By Coolio or anything from Tupac.  

Street Pricing streams live on OC TALK RADIO, Orange County's only online business channel, every Friday at 9:00 AM PT and is available for download on all major podcast platforms.

Follow Marcos on LinkedIn

Get your copy Street Pricing: A Pricing Playlist for Hip Leaders in B2B SaaS here

Want a consultation? Email Pricing I/O at [email protected]

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Episode Transcript

[00:00:00] Speaker A: Yo, mic check. What's up, everybody? You're listening to the street pricing podcast, the only show where proven SaaS leaders share their mindset and mistakes in pricing so we can all stop guessing and start growing. Enjoy. Subscribe and tell a friend. Now, let's break it down with your host and sought after Slayer of bad pricing, Marcos Rivera. [00:00:25] Speaker B: What's up? And welcome, everybody, to another episode of the Street Pricing podcast. I'm Marcos Rivera, author, entrepreneur, and pricing coach. And today I am bringing someone who I'm ultra excited about because this person was head of pricing at Marketo. Think of these names, right? Marketo, gainsight, coupa, and now at ClickUp, think about the experience in the amount of pricing experimentation and changes and successes. All those key things. I am bringing someone here that has done all that and is going to share some deep stories today. Excited to bring to the stage here, Johnny Cheng. Welcome, Johnny. [00:01:04] Speaker C: Thank you. Thank you. Thank you for having me. Super excited to get started. [00:01:07] Speaker B: No, man, listen, you are representing the bay in a good way, all right? You've done all these different types of companies. Small, acv, large, acv, enterprise, mid market, small. You've done it all. And I am super excited to jump in with you today. I do, though, have to really strike at you right out of the gate because I just found out that you are in San Diego. You did not reach out and say hello to me. Damn you, Johnny. There's so many good taco shops out. Okay, we got you. I got. It's on tape, by the way, now, so you got to follow up on that one. Listen, real quick, before we get into things, tell everyone what you do today at ClickUp, just a little bit about you. [00:01:47] Speaker C: Yeah. So just to reset a little bit, I've been a pricing leader for over ten years now. Just various SaaS companies like Marcos mentioned, from small to really big. And right now I'm at ClickUp. And so at ClickUp, I currently head up monetization, basically everything that has to do with revenue. So, like monetization, NDR expansion, new business, all that stuff. And so we've done some really incredible pricing, packaging changes over the past year and started to share some stories. [00:02:19] Speaker B: Oh, man, you have done a lot. I know some of them, but I'm really excited to break it open here. So here's how we set up the show, right? Real simple. We're going to do three different talks here. Rewind. Let's talk about the past, what big pricing change or story that you could share with us. I want to hear struggle. I want to hear the real deal in digging into that change and then share it with the world. The next one here is going to be bringing it back to the present. I call it play. So what is working for you nowadays? What's really bearing a lot of fruit? And then we're going to talk fast forward. What's next? What do you want to change? Where are you going to go with the pricing and packaging? And then at the end, we're going to wrap things up with my favorite question, which is, tell me your favorite song. 90s hip hop gets a special bonus, but doesn't have to be. So think about that. Keep that in the memory bank in the back of your mind. But let's start off with a great pricing story. Johnny, let's talk about it. [00:03:08] Speaker C: Yeah, I'm going to go way back, and this actually has to do with Marcos. And so you guys are in for a cool treat. So about 1011 years ago, I was at a company called Marketo. A lot of you guys know Marketo. It was the leader in marketing automation space. I mean, it kind of revolutionized that whole marketing automation, email marketing, mobile marketing space. And so I was there and I was basically head of pricing for Marketo. And when I first joined, we were a single product company. Even though we were rapidly growing all these different products, features and everything, we were still only single threaded. Right. And so if you think of us going to market, the value just did not align with the price. We would sell something that would be incredibly valuable to certain people and it would be the same price as if you were going in and someone doing newsletters, right? And we're like, God, the technology is just amazing. There's so many different use cases. And so we ended up going to a platform and apps model. So it was a very big change at the time, right? So we're like, you know what? There's all these different audiences, there's all these different plays. We need to package our product so that it speaks to those individuals, so that we can correctly monetize. At that time, it was actually really scary, right? A lot of the ESAP were really against it. They're like, no, we just do one thing. And then it took a ton of research, try to convince like, no, there's, there's distinct value for consumer marketing for mobile marketers, for people that do just need newsletters, right? [00:04:41] Speaker B: That is so big. I'm sorry, John, I got to. Because you said packaging. And when people think of pricing, they think of that number, right? Like, okay, should it be 99? Should it be 109, et cetera. But you're taking it now to actually, guys, it's the way we package the product that's actually going to unlock a lot more value and revenue. And I want everyone to hear this, is that pricing is not just about that number at the end. And if you're running a B, two B SaaS company, you're thinking about, what should my price be? You might want to take a further step back and wonder, is your packaging even right? So I think you're hitting on a really key point there, Johnny. Keep going, man. [00:05:15] Speaker C: Yeah, I was just remind people it's pricing and packaging, right? It's not just pricing, it's very clear. That's right. Yeah. And so we went through this whole model where we just tore down every single feature and we actually rebuilt it like legos. Right? It was like, think of each individual pieces as each individual feature, and we rebuilt the whole, entire thing. I mean, it was a month long exercise. We started off with hundreds, I mean, seriously, hundreds of features. And then we're like, how do we bucket it? Who are the right target audiences for this feature? How much is it Worth? How competitive is it? Went to this whole exercise, and we built these. Think of it as four or five solutions. And so it's almost like a first step towards solution price. It was an unbelievable process, and at that time, it was actually very new in the industry. [00:06:03] Speaker B: I don't think people want to do that. You went and you took all your features, which were a lot, right. Because you're pretty robust, and you started scoring them on those dimensions, right. Who really wants it, the value of it, ability to monitor it, all that stuff. [00:06:14] Speaker C: Right? Yeah. [00:06:14] Speaker B: For the audience, I got to understand, did you just plop them in a spreadsheet and just started scoring them out piece by piece? [00:06:20] Speaker C: We did. There's a spreadsheet that lives in marketo somewhere that's just. I mean, it's like 500 rows long, and we just started scoring everyone. And it's really funny because the CEO started getting involved, a lot of people, because people are very opinionated and very passionate about it. And once you start seeing the patterns, it's like. It's magic. It just clicks. [00:06:41] Speaker B: Right? [00:06:42] Speaker C: You start to understand that there's different groupings, different audiences, different values. And then once it clicks, that's when actually things actually speed up. And you come up with these, I call it modules, right? And based off of those modules, that's where you build the platform and apps. And so it just all came together, and it was amazing. [00:06:58] Speaker B: That is phenomenal. Selling the right value to the right customer the right way. It sounds easy. The way I say it, it's actually really hard to nail down. But once you see the patterns, it gets easier, man. Keep going. Okay, so now you went through this. It sounds like a grind. You went through. It took about a month. Keep going for me. [00:07:14] Speaker C: Yeah. And so I think there was actually two big hurdles here. Right? The first one was obviously the go to market side. And because we were b to b, we had a huge sales team. Now, all of a sudden, this gets sales bought in. And I cannot stress this enough. I've talked to so many companies where the pricing professional or someone that's responsible for pricing, they do it in a vacuum and they don't talk to the sellers. The sellers are the ones actually going to go up to sell the value of it. And if you don't get them on board. And that was one of the first things my mentor told me when we first started this project was get the sellers involved. Right? Make sure that they're heard. Get them involved, because at the end of the day, if you're going to go do value selling, they're the ones that have to go do it. And so that was a hurdle number one. And right as we started going, I got a couple of the sales leaders basically on board, and they were my voice, they were my advocate for that whole entire team. That was 100% crucial. And if I didn't do that, it would not have been successful. [00:08:13] Speaker B: This is something I have to underscore here, because getting sales on board, it's a phenomenal thing to do because it does kind of validate and it also allows you to roll out a lot faster. But here's the thing. Most companies struggle with getting sales on board. But you did it right. You had buy in from the get go. Give me a little bit more behind that because I bet you there's folks listening right now who are thinking like, damn, how do I get my salespeople on board with new pricing and packaging? Did you bribe them with lunch? How did you get them bought in? [00:08:42] Speaker C: Yeah, I think there's a couple of things, right? One is like, what is the upside for them, right? And they felt the same struggles, too, right? They were going into deals. Sometimes they were like, I want to do a negative discount because I'm talking to this customer that absolutely loves the product and they're going to use it for all these amazing things, and I just can't sell it at the right price. I need you to tell me what that price is. And so I was selling the vision of what they're going to get out of this, right. The vision is, if we do this correctly, you can now monetize correctly for different types of customers. And when they saw that, it's just like dollar sign in their eyes, right? They're like, yes, that's what I want. And then you basically set the guidelines. You set like a guided selling process for them. And all of a sudden they start to realize, hey, for this deal that used to be $1,000, it's probably worth 3000, and I can sell it at that price. Right. And so they'll feel very confident to do it. And so once you get to start thinking about that, they're 100% bought it. [00:09:37] Speaker B: First of all, I think a lot of folks probably never heard the term negative discount, right? But it is a nice way if you have a target for your sales rep in the background, list price, but then able to sell a bit above that. This is kind of testing a little bit of that headroom in the price point. I've seen companies do it and do it well. But the thing that you said that I think struck me the most is the aligning to what they really want. And you did something that I want everybody to understand. What you just did. You took a deal that was worth $1,000 in the old model and said, look at what you could sell it for in the new model, old model, new model. Look at all this extra compensation and revenue coming your way. This is why you want to do this pricing model. And listen, nothing talks to sales better than showing them how the mechanics benefit them. And I think that's it. The old model, new model, old model, new model, and just compare it. I love it. [00:10:30] Speaker C: I love it. [00:10:31] Speaker B: So straightforward. [00:10:32] Speaker C: Yeah. And then I would say the other hurdle is once your pricing model gets a little bit complex, this is actually where you need to provide them with the right tools. And so I think the second step is people pass their first hurdle and they're like, great, fantastic. Let's try to roll this out. But oftentimes it's a change in a model in the framework. And so you don't want sales confused, you don't want them to second guess themselves. And so you got to provide them the right tools. Right. And so I built this pricing calculator. We ended up launching CPQ. And so the right tools for them to actually understand and utilize the model effectively, because what you don't want to do is just sell all the hype and then just say, okay, go do it. And then they're like, I don't even know how to price this correctly. I don't know what the right levers are. And so you go through this whole sales tool, sales enablement process that follows that, and that's a big part of getting them on board as well. [00:11:21] Speaker B: Yeah, I love that. First, you're making it attractive by simply saying you're going to make more money in this model. And then second, you say, you know what? And I'm going to make it easier for you. We're going to automate quotes so you don't have to think all the time and have to go through these hurdles. We're going to make it easy for you to navigate the deal, give you some flex, like all these things, so you get the benefit of the extra revenue and you get the sort of smoother and easier effort and work around that. So now I got two things. It's easy, and it's making me more money. What can appeal to a sales rep more than that? Right, exactly. Those two hurdles are so key that you pointed out, man, what else? [00:12:00] Speaker C: So I think one of my proudest moments was we actually ended up launching this alongside our old model, right? And we did this. And in that environment, in a b two B environment, you can't really a b test. And so this was like sort of an a B test where you kind of had two models running simultaneously. And I just let the reps pick. Right. There were some reps were way more bought in than other ones. And I'm like, go ahead and just use a new model, see what happens, things like that. And within the first three months, it was very apparent we saw a drastic difference. There were deals that were on average, like 40, 50% higher in terms of ASV. And it's really funny because we kind of did this organically. And you can kind of tell the sales force once they saw the dollars from their colleagues, they just all started slowly shifting, shifting, shifting it over. And we didn't even kill the old model. But by month five or six, just no one was using old model anymore. But we were like, this works. This is proven. I'm now hitting quota. And they just loved it, and so they just gravitated towards it. I've never seen that before. And I think that was just such an awesome phenomenon to see. [00:13:12] Speaker B: So you just let the adoption speak for itself, which is great. Listen to everybody. I mean, you're probably wondering, like, holy crap, how do you run two models side by side? How do you give that optionality to sales, isn't that, like, super riddled with friction and confusion? And that's really scary. But you did it. You did it for 90 days, for three months, right? [00:13:31] Speaker C: Yeah. [00:13:31] Speaker B: And you started noticing, you gave them freedom. You said, here's the old model. Fine, here's the new model. Everything that comes with it. You said, you can pick and choose as you go through your deals. And here's the key thing about salespeople. Salespeople, very competitive. They're also very smart at finding the shortest path from a to b. And so when you find the shorter path from a to b, you just gravitate there. That's what you want to use. And then when one rep sees the competitive. Oh, you're doing that. Hey, let me try that, too. Let me do that. And let me do that. And then you'll see this kind of very natural shift to the new model. So it's not like you're cramming it down their throat. [00:14:08] Speaker C: Right. [00:14:08] Speaker B: You're kind of saying, hey, here it is. Here's the way you're comfortable and familiar and used to selling, and go ahead. And you have the option to choose either one. Give me a little bit of, how did you fight the friction and the confusion of having two models? [00:14:22] Speaker C: Yeah. So you mentioned the whole, like, cramming down their throats. That was our backup option. Right. I would say 80% confident that this would just be organically baked up. We love the model. We shopped it around. People all loved it. And so we're like, we're pretty sure, but that 20%, which is our backup plan, is like, if this doesn't work out or if, let's say we did this simultaneously and sales are resistant to change, then we would have forced their hand to do it. But I would say the biggest point, and it goes back to all the sales tools, there's a lot of friction there, but it's friction that already exists. And so in a new model, when you provide them the tools with the calculator, with CPQ, it actually removes some of the friction. So they're like, oh, all the pain that we have to currently go through, that actually solves some of it. Right? And so you think of, like, deal desk, you think of how deal velocity and how it gets passed and how it gets approved. All of sudden a, they're like, whoa, that's automatic now. And so a lot of that friction is actually gone now, which is just, I feel like I'm going to emphasize this again. Without the tools, there would have been more friction, which would have been really bad, right? Because sales is like, first of all, resistance to change. Second of all, there's even more friction. Now I have to now choose which model. And at this point, I would have been dead in the water. And so without those tools, I can't emphasize enough, that's what removes some of the friction. [00:15:46] Speaker B: That is a key unlock there because, yes, there was some friction because now you have two options of models to sell versus one, which is harder. But you took away so much other friction with the automation and the guardrails and all the other key things that you were able to kind of couch that in there. And therefore they were able to accept a new friction, which worked in your favor, because in the end they're like, ooh, this new model works so much better. So take me down to the results, right? Because you just mentioned 40% to 50% Asp, average selling price increase. But, man, your conversion rates must have tanked, right? [00:16:21] Speaker C: You know what's really funny? It didn't because we had. So this initiative is actually driven by PMM, so by product marketing. And so we did one hell of an amazing job speaking to the target buyers. If you have that messaging, perfect. That speaks to that mobile marketer, that speaks to that consumer marketer, that email marketer, they eat it up, right? Because they're like, well, this solution bundle, this plan is custom made for me. And they're more than willing to pay extra for it, right? Because they're like, you're basically tailoring these set of features and speaking my language. And so that's the other part where I'm a firm believer that you have to get product marketing involved in any kind of price change because they're the ones that understand what the customer wants and what they care about. [00:17:08] Speaker B: You're defined logic, man. But it's so true, right? You're defined logic. 40% to 50% higher prices or average selling price should mean you're selling less because people don't want to buy it. But what you're revealing here is if the buyer feels like you're giving them exactly what they want, you get me. You know me. You can do that. You can actually pull it off. And I think that's a big mythbuster that you just kind of said there is. Hey, we captured higher prices. Our sales kind of went down, but we got more average selling price. And so the net net is like, no, no, not net. We actually got higher prices and our conversion rate still held strong. So we know, really feeling the lift after the pricing change. [00:17:49] Speaker C: Yeah. And I think my proudest moment. So this is where Marcos came in. At the time, Marcos was with Vista Equity, and he came in, he's like, I'm going to evaluate your pricing model after the change. And I remember, went through this whole exercise, and seriously, this is proudest achievement. I remember you gave us, like a five out of five. And I was like, over the moon. I was like, marco Rivera gave me a five out of. And, like, you were talking to hundreds of companies back then, right? And so you're like, you are basically the best of the best. And I was just like, that's it. I can retire at that point. And so if that result speaks for itself, because that was not an easy assessment, that was hard, I'm going to. [00:18:35] Speaker B: Tell you, I think I only gave maybe like three or four or five out of fives out of that entire bunch of 100 companies. So, yes, you were cream of the crop. But think about what you just did, man. The getting the buy in, the tooling, the analysis up front, started with the grind. Listen, not everybody has fancy analytical usage software out there. So you had to get in and get really familiar, even from the CEO down. What feature value do we want to give to each audience and understand those differences? And then applying it, testing it, proving it in multiple ways, and then messaging around it in such a pithy and clear and focused way. And then the result spoke for itself. I mean, obviously, everyone knows the story with Marketo getting sold to Adobe for like a gajillion dollars, right? And that's a technical term, but you guys deserved, you guys did a phenomenal job, so I rated you high, and the results kind of spoke for themselves, man. Listen, fantastic story behind there because I think not a lot of people know kind of how that went down and how they were able to capture so much more of that value. So let's now bring it forward and back here to the present. Right now, you probably have a ton of stuff going on, pricing and packaging at ClickUp. Give me a sense for what's working for you today, what's bearing fruit. [00:19:48] Speaker C: Yeah, I'm going to say that the main reason I came at ClickUp is because it is one of the fastest growing PLG companies out there. True, true. Plg. There's a lot of companies out there that are like. And for those that don't know, it's product led growth. Right. You think of companies that are. Yeah, like, we think we're PlG, but their product takes three months. Handholding takes five people to onboard them they don't even see the value until year two. That is not PLG. Right? ClickUp is true, true PlG. And I want to see the magic. I wanted to see how it was really done. And it's so funny because I talked to a lot of different companies and they know that I might click up, and they're like, how do we switch from traditional model to a PLG model? I tell them that's hard. It's really hard to go from that traditional to PLG, especially if your product isn't built for it. And that's the thing that people have to understand, right? You're right. [00:20:49] Speaker B: If you want to go PLG or product led growth, you got to have the right product to do that. Not every product can pull that off. And I remember ClickUp. I mean, even back when you guys started, it was $5. Folks were getting in there. It was pretty generous, free plan getting in there. And you were fighting in a super crowded space with some bohemians in it and still got a really fast acceleration growth. I think the story is amazing on how you got there. So if you had to think about your true PlG at ClickUp, what is working that's making it such a smooth growth mechanism for you guys? [00:21:24] Speaker C: Yeah, there's a couple of components, right. I think the first thing is the ability to see value very quick. And I think that's the primary, primary thing of what makes a successful PlG just basically helm. [00:21:38] Speaker B: Right? [00:21:39] Speaker C: If you think of, like, going to the product, I mean, within days, I'm not talking, know, traditional SaaS where it takes you like a year and plus onboarding, within days, you have to be able to realize the value. Right. And so if you look at a lot of our conversions, a lot of our conversions are actually very front loaded because customers, they come in and they're just like, well, mind blown. I'm going to get in here, I'm going to start creating tasks. I'm going to start tagging other people in. I'm going to start doing work in this platform. And then it just hits this inflection point where it's like it clicks in the head like, whoa, I can do work in here. This is going to make me more productive. I see the value. And then after that, at that point, 710, $15 is like nothing, right? Yeah, I'm more than one of the papers. It's like less than Netflix, right. And so they'll gladly do it. And so I think that's what makes it really special is being able to see the value very quickly. Yeah. [00:22:32] Speaker B: I mean, throw a funny pun in there, right? I mean, it clicks very fast. Right, for ClickUp. If you think about it, the ability to do PlG great is showing that value early. But not every product can do that. Right. And so there's different value cycles. Some value comes peaks and troughs seasonality. Some value comes way up front. Some value comes way behind. And some of it just kind of grows kind of steady over time. As you use more of it, you get more value. And that's kind of the best model for SaaS and subscription. And you get access to this thing, you use it, you get more value over time. But the thing about PlG is that it's got to be so damn obvious. And so you said no, not months, not weeks, days. I got to figure out if this product is for me get to wow. So that way they can begin to have a click in their mind that life is so much better with this than without this. Let's go. [00:23:24] Speaker C: Right. [00:23:25] Speaker B: And not every product can do it. You're absolutely right. [00:23:27] Speaker C: Exactly. [00:23:28] Speaker B: Phenomenal. Phenomenal. So let me ask you, what's that secret sauce or secret weapon in that freemium or in that early entry point in your product led growth that kind of gets them like, oh, crap. Yeah, this is for me. [00:23:43] Speaker C: Yeah, I think the secret sauce and I got to give our CEO credit because this is not my idea. This is actually the first time I've actually seen it is. We have a really good feature is very generous. People can do a lot of basic task management in there. And one idea he had was to combine paywalls, like hard feature paywalls with usage paywalls. So give them a little taste because you're going to have these power users that are going to go in and just explore. They're going to explore themselves because they're like, I'm starting to see the value of this. I understand the basics. I want to start looking at some of the more richer features. That's going to make it a little bit more advanced for my maturity. Don't gate that. Let them have a taste of it. Right. And so they start using it like 50 times, 100 times, and then hit them with a paywall and then get them basically to upgrade or to get them paid. I think that's actually brilliant because I think a lot of companies are just like, no, I'm just going to completely gate the entire feature and I'm going to let them see it. They don't even know it's there. There's some merit to that, but if your product is that intuitive and they're going to explore, let them do it. [00:24:54] Speaker B: No, man, you are so right. You're so right. Listen, you just brought up this idea of taste over toggle. All right? Taste over toggle. Listen to this, right? This works really well. I want to get in, show it to me. Let me understand it. Let me feel it, right? Is this good? You don't have to give away the whole farm, right? Just give me a taste. It could be x number of something. It could be time based. It could be something that kind of lets them get in, understand it, and then realize, I actually want this. This is going to improve. And that's what starts to kind of pushing them over. But you're giving them a lot of leeway in the free to do stuff, right? You're saying the free, it's not overly constrained, it's not too bare bones and skinny. Because where I guess the realization and light bulb comes on is you've given me a lot of this freedom. You let me do stuff and that gives me this sort of sensation of exploration. Now I can want to explore. What else can I do? What else can I do? What else can I do? And if you overly constrain it from the very get go, then you can't even get that far. You don't even get the sensation of expiration. But if you give them the generous amount here, the generosity helps. Then you start giving them tastes of that next version, that paid version. That's what gets them over. I think that's brilliant. Everybody just listen, rewind for the next 3 minutes and just listen to that, because that is a phenomenal way to get folks over, and it's working today, clearly. What about going forward, future? Let's fast forward for a second here. So the curse of people like you and me who see so many pricing models is that we know there's a way to improve it, it's working, but there's probably ways we can extract more value or make it simpler or do whatever. So what do you think is next for ClickUp on a pricing packaging frontier? [00:26:38] Speaker C: Yeah, I think the next big rock is seeing if this whole productivity space starts branching out to be more multi product. Because right now all the players are know, single threaded. Just like how marketing automation space was back in the days, right? It was just one product. There's a couple of use cases, obviously, but then what we're starting to see, and I think the other players in the space starting to see as well. But what ClickUp is starting to see is there's starting to be these different types of users, these different icps, these different types of use cases. And so because of that, eventually I think what's going to end up happening is ClickUp, along with other solutions, are going to start going multi product and multi threaded, right? And so it's going to eventually evolve into this platform and apps model, just like I've seen in my previous careers. But once you get to that stage, then can you do like what we did at Marketo, right, speak to different kind of audiences, different kinds of use cases, and then charge differently for each of the use cases. And so that's what I want to get there eventually. But I think this productivity industry itself is still in its infancy, still very early on, and nobody's really made that jump yet. I think everyone's kind of like holding back and seeing who's going to make that jump first, right? [00:27:54] Speaker B: It is going to make a jump, but I see what you're seeing, right, which is there's so many tangentials when it comes to collaborating and communicating and sort of owning those pieces. And today you have different folks solving different problems, and then slowly over time, you're going to see the expansion of maybe solving these problems together in one tool and the benefit of integrating them and the benefit of spanning maybe multiple user types or icps or ideal customer profiles right in there. And so that's going to introduce more complexity into the model. And so if you don't have a good idea of which features add value, where the audiences you want to serve, the different ways to tantalize folks and move them up into the paid plans. When things start adding in complexity, it gets really muddy and hard. But with a good foundation, you can decide where you want to add the complexity in order to create more routes to growth without overcomplicating things for sales and for people and PLG for that user, you still want to keep it super simple and super quick to the. [00:29:05] Speaker C: Is, you know, if you think of it's, it's benefit for them and benefit for us too, right? We're building all these new features for all these new use cases and we're constantly innovating. And because you're constantly innovating, it's going to get to a point where you need some RoI on that, right? And so you got to monetize that. And once you get to that point where it's true multiproduct, that's where the money comes in. [00:29:27] Speaker B: This was crazy. Absolutely crazy. This is like ten episodes of pricing podcasts in one right. So we talked about the multiple hurdles you had to go through with revamping pricing. We talked a little bit about PLG testing, pricing out there with sales. We talked about going multi product. I mean, we cover the full spectrum, man. Just thinking about your background, right. We just covered all those pieces. So I got to get to one of my favorite questions, which is, what is your favorite song? Favorite song. Growing up. Hip hop is a bonus. [00:29:58] Speaker C: Yeah. If you think, like 90s hip hop, I'm going to go with Tupac. However, recently, though, recently I was, like, shopping and I heard Coolio with gangsters paradise. And I was like, I was like, okay. I was like, that feels really good. And so I'm going to go with that. Because that brought back when that song first came, I was listening to repeat for, like, weeks, right? [00:30:24] Speaker B: Because it was on the radio for, like, ever for weeks. He said coolio. I think he might be the first one to say coolio. I would tell you, though, that that particular song is what really drove hip hop in mainstream. I mean, everybody loved that song. Whether you like hip hop or not. That beat, the whole thing. Michelle Pfeiffer in the video, everything was on with that song, man. No, thank you for that one. And also coming in here today, dropping real knowledge, I mean, going way, even way back for like ten years ago. I gave you a high five then with my five out of five score. And I'll give you another one now. Right, just for all the awesome stuff you're doing today. Listen, I hope folks take this and some of those big fat question marks in their mind when it comes to rolling out, testing and pushing pricing, and whether it's sales or PLg, they take this and they do something with it. So for everyone out there listening, thanks for joining today. And please stop the guesswork and stop guessing and start moving on and grow. All right, everybody, until next, love for. [00:31:22] Speaker A: Listening to the street pricing podcast with Marcos Rivera. We hope you enjoyed this episode. And don't forget to like and subscribe. If you want to learn more about capturing value, pick up a copy of street pricing on Amazon. Until next time.

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