Pricing and renewals

Repricing a book from seats to consumption.

Customers bought seats, used a fraction of them, then left at renewal having concluded the product was expensive.

20% to 8%Churn, year over year
$500KOf ARR retained that the old model would have lost
90 daysOf warning before a renewal, instead of a week
SalesforceChurnZeroPendo

Health was measured by logins, so nobody saw it coming.

The renewal conversation was the first honest conversation of the year, and by then it was a negotiation rather than a relationship.

Pricing moved from seats to consumption so the invoice matched the value being taken, and health scoring moved onto real usage.

Near term revenue compression, on purpose.Charging for what is used costs less than losing the account.
The signal reached the owner in time.Ninety days out, not the week of the date.

What changed

Churn from 20% to 8%Year over year, across the whole book.
$500K of ARR retainedThat the seat model would have lost.
Renewals stopped being a surpriseBecause health was built on what people actually do.

If this sounds familiar

Three things are true in almost every system we open. If two are true for you, the same work applies.

Customers buy more seats than they useThe invoice and the value have come apart.
Health is measured by loginsWhich tells you somebody opened a tab, not that it worked.
Renewal is the first real conversationAnd it is a negotiation by the time it happens.
Have us read your renewals, free Or check it yourself in two minutes

More of the work

Every engagement, with the number it moved.

148,000Rebuilding a CRM 22 people had stopped trusting$10MTen million in pipeline with no traceable source+18 ptsBuilding a revenue operations function from nothing2% to 14%A scoring engine built instead of licensedDay oneNamed correctly by every model, on a domain with no history$3.6MReading the whole system before touching anything

Questions

Could you do this for us?

Probably. Every engagement starts with the free diagnostic, which tells both of us whether the same pattern is present in your systems and what it is costing.

What would it cost?

Work like this sits inside the $2,000 a month retainer, up to 15 hours a week, or Kaypo included. The diagnostic that scopes it costs nothing.

How long does it take?

It depends on the state of the systems, which is what the diagnostic establishes. Nothing is quoted before somebody has read them.

Related services

Where this sits, and what it costs to fix.

Customer success platforms, and what health scores missWhat revenue architecture actually meansFind what is broken, freeTick what is true and see what we would doWhat everything costsThe work, with numbersHow an engagement runsWhat we build

Let us look under the hood.

Read-only access to your systems, and a written report you keep either way.

Start the free diagnostic

Let's chat.

Thirty minutes. Tell us what you are working on and we will tell you on the call whether we can help.

Add your name and a work email so we know who we are talking to.

Thank you!

We will reach out to you shortly. If you have not heard from us by tomorrow, email hello@sapwood.io.

While you wait, keep reading
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