How Stripe took a swipe at bundles | Annie Schmidt (Stripe)

Today Marcos welcomes Annie Schmidt, Product Lead at Stripe, who shares her extensive experience balancing product development and pricing, particularly in her current role leading Stripe's terminal team. We start with a compelling rewind to Annie's days at MindBody, where she faced the challenges of implementing a price increase that initially did not go well. By explaining the 'why' behind price increases and taking a ground-up approach to evaluate customer value, MindBody was able to justify changes and align their offerings with user needs. We also highlight the process of categorizing users into different cohorts and restructuring pricing tiers, ensuring a fair and transparent approach that resonated well with their diverse customer base.

We wrap up with insights into the complex process of implementing successful pricing changes, especially when integrating hardware and software solutions. Annie shares how clear, value-based packages can simplify the decision-making process for both salespeople and customers. Emphasizing user empathy, we discuss the significance of renaming packages to reflect core benefits and presenting features that connect directly with customer needs. Tune in to hear valuable strategies and tips to enhance your own pricing approaches by aligning them with your customers' desires and values.

In this episode:

(00:00) Guest intro- Annie Schmidt of Stripe Product Pricing Strategy Success Story

(03:16) Annie discusses balancing product development and pricing strategies, and shares a rewind story from her time at MindBody.

(08:25) Pricing Strategy and Value Alignment - Communicating and implementing a pricing initiative by emphasizing value, explaining the 'why' behind price increases, and restructuring tiers based on user needs.

(16:50) Effective Pricing Strategy Implementation Data-driven pricing strategies were used to minimize attrition and user dissatisfaction, resulting in the successful implementation of new pricing for software products.

(25:30) Hardware and Software Pricing Strategy - Packages for payment solutions were streamlined and renamed by empathizing with users and presenting features in a customer-centric way.

(34:01) What’s next for Stripe - Collaborative Pricing Strategy Insights - Lessons on avoiding mistakes, connecting with customers, and making incremental improvements for business growth..

(37:13) Favorite jams growing up

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.

Resources:

Annie Schmidt LinkedIn
Stripe
Marcos Rivera LinkedIn
Book: Street Pricing
Email Street Pricing for a consultation