Assistly Marketing VP Tells You Why They Dropped Tiered Pricing and Picked Up Freemium

UPDATE: Assistly was acquired by Salesforce.com shortly after we did this interview… they are now Desk.com.

I sat down and chatted with Assistly’s SVP of Marketing Matt Trifiro via Video Skype and he spilled his guts for you about why Assistly changed their pricing, adopted Freemium, and set out to disrupt the market… all at the same time.

The conversation is about 40 minutes… Check it out:

Do you prefer to listen on the go? Download the .mp3 audio file (36.3MB) here.


Wistia has kindly donated business video hosting to me, which pretty much makes them awesome!

Recently SaaS startup Assistly changed their pricing strategy and included Freemium at the same time, and it made a huge splash with the industry news outlets.

This is just another reminder that Pricing is Marketing that we should all pay attention to.

While this change was covered by a ton of different media outlets – Matt and I were even interviewed for the same article – none of the articles went into the depth that I wanted on what is a pretty MASSIVE change.

So I reached out to Matt and asked him if we could talk about it and record it for you.

He thought that was an awesome idea, too, and we made it happen… just for you!

Some of the things you’ll learn:

  • Is Assistly just trying to acquire free users to sell to a company that will monetize them or are they using Freemium to drive revenue?
  • What the #1 metric SaaS vendors must focus on for long-term success
  • How to use behavior-driven In-App Marketing to effectively segment customers rather than up-front self-selecting market segmentation
  • Why SaaS companies shouldn’t look at Amazon Web Services as the sales model, but at Amazon.com e-commerce
  • How to create a system for pulling users into the app deeper to grow Customer Lifetime Value (CLV)
  • Why they moved away from tiered pricing
  • How Assistly moved the pricing / buying decisions to further in the app and extended the “funnel” into the product
  • And a TON more!

I hope you enjoy – and learn from – the conversation I had with Matt as much as I enjoyed – and learned from – having it.

Please comment below and let me know what you think.

Thanks!

– Lincoln

About Lincoln Murphy

I am a Customer Success-driven Growth Consultant. I wrote the Customer Success book which you can buy at Amazon. If you need help growing your SaaS, request at least a 15-minute call with me via Clarity. Be sure to join my mailing list - I send awesome stuff to the list every week or so. Also, connect with me on LinkedIn or follow me on Twitter.

Comments

  1. Lincoln,

    Thank you for sharing this video interview with us. And thanks to Matt for all of the details he was willing to share. It’s great to see companies being open with their strategies.

    I find Assistly’s model interesting and can understand the value to their customer base. My company, PIEmatrix, targets two tiers — the 50-500 and the 500 + employee business and corporations. I would find it a challenge for vendors like PIEmatrix to provide instant, a-la-cart pricing models because many customer firms above a certain size are structured to pay by check and by the year via A/P rather than use a charge card. Having said that, an a-la-cart option would be too costly to manage (at both ends).

    One thought I have that could work is to structure the a-la-cart options into large enough chunks that would discourage frequent pricing changes, while providing less of an “extortion-like, you must pay for a whole gamut of features” model.

    Thoughts?

    Thanks again. Great interview.

    Paul

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