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Why we switched to usage based pricing | Alyssa Higgins (CipherHealth)
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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 Alyssa Higgins, who has been with CipherHealth for almost 10 years and currently works as their Vice President of Operations and Enablement.
Alyssa discusses how pricing at CipherHealth pre-COVID was very US-centric and how they realized things needed to change. (2:47) They wanted to make pricing more flexible to be able to help better serve their customers. The pricing didn’t align with who they wanted to be as a company and wanted to move to a more customer-centric pricing. They noticed there were issues when it took more than two weeks to price a deal. (5:51)
They were offering many types of packages and features, which was making the pricing take a while. (7:35) Alyssa tells Marcos about how they needed to simplify the process and talk to the customers to better understand how to serve them better. Alyssa led the project and partnered with Marcos’ team to change the pricing and went from a program-based model to a usage-based model. (12:05) A pricing committee was started at CipherHealth to keep moving and pricing the right model. (18:44) Marcos and Alyssa talk about how important it is to keep the pricing committee consistent in order to continue the success. (20:55)
Alyssa talks about the hopes for the future of pricing and packaging at CipherHealth and continuing to evolve and incorporate AI. (24:19)
Marcos and Alyssa close out the show by discussing Alyssa’s favorite 90s Hip-Hop song “Mathematics” By Mos Def.
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