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KISSmetrics' bizarre pricing decision

jamie.ideasasylum.com

51–56 of 56 posts

Re: KISSmetrics' bizarre pricing decision

#51
post #44

Earlier quoted context omitted.

I think the point of the guys blog post / rant is not so much the price in general, but that he felt the product targetted at the start-up community. Not that I have taken too much notice but I was under the impression that is where they were targetting it and I wouldn't be surprised if most of their beta testers were from that community and expecting the $10 per month pricing that they are more familiar with. Person…

You realize you're responding to a solo founder of a standalone startup that sells bingo card creation software, right? I have mad respect for Patrick (he's sitting right next to me at the moment), but if you were under the impression that being a Bingo Card Mogul meant Cristal and Rolex watches, uh, no. How much more credible a testimonial can you get than "I built my business in 5 hours a week, I sell bingo cards t…

I don't think they can't charge that, nor find customers happily willing to pay it. The issue is that if you're going to break from the norm in your industry (and analytics for startup companies, oh yes, they did) then it would be nice to give people a heads up before reeling them in for a free beta. In this example, the guy actually invested time writing code to integrate with it. There's a learning curve associated with beta testing a product and without giving any indication of price ahead of time, it's a reasonable assumption that it will be ballpark what it's competitors are, not 10X that. This is not a complaint about the price they chose, it's a complaint about spending a great deal of time and money marketing to startups (god, did I see them everywhere) and then flipping to a point where they could not afford them. I do believe that someone who has made his money not off a disruptive product or social media network, but carefully analyzing metrics and conversions (like Patrick) could benefit from it, and perhaps that's who it's for, but that's not how it was marketed. In his case, he clearly feels he can make > $200 a month by using it. But what if it cost $1000 or $1M? The point is you have no idea and they clearly aren't concerned with ballparking where there competitors are. I've always been nervous about signing up for a "free" beta that my business can become dependent on without knowing the price. This just convinces me to continue doing that.

Re: KISSmetrics' bizarre pricing decision

#52
post #44

Earlier quoted context omitted.

You realize you're responding to a solo founder of a standalone startup that sells bingo card creation software, right? I have mad respect for Patrick (he's sitting right next to me at the moment), but if you were under the impression that being a Bingo Card Mogul meant Cristal and Rolex watches, uh, no. How much more credible a testimonial can you get than "I built my business in 5 hours a week, I sell bingo cards t…

I don't think they can't charge that, nor find customers happily willing to pay it. The issue is that if you're going to break from the norm in your industry (and analytics for startup companies, oh yes, they did) then it would be nice to give people a heads up before reeling them in for a free beta. In this example, the guy actually invested time writing code to integrate with it. There's a learning curve associated…

[deleted]

Re: KISSmetrics' bizarre pricing decision

#53
post #44

Earlier quoted context omitted.

You realize you're responding to a solo founder of a standalone startup that sells bingo card creation software, right? I have mad respect for Patrick (he's sitting right next to me at the moment), but if you were under the impression that being a Bingo Card Mogul meant Cristal and Rolex watches, uh, no. How much more credible a testimonial can you get than "I built my business in 5 hours a week, I sell bingo cards t…

I don't think they can't charge that, nor find customers happily willing to pay it. The issue is that if you're going to break from the norm in your industry (and analytics for startup companies, oh yes, they did) then it would be nice to give people a heads up before reeling them in for a free beta. In this example, the guy actually invested time writing code to integrate with it. There's a learning curve associated…

I actually don't have a lot of opinions about funnel tracking, so I'll keep this simple and limit it to what I do have an opinion about:

If $200/mo is a lot of money to you, you either shouldn't be spending a lot of time on funnel tracking, or you don't have a business. $200/mo is below the noise floor in company with just four people at ramen wages in the Bay Area.

Re: KISSmetrics' bizarre pricing decision

#54
post #50

Earlier quoted context omitted.

Thanks Patrick, I'm sure it was one of your blog posts that put me on to KISSmetrics so I'm interested/glad to hear that you're going to stick with them. Perhaps you'd do a review in 6 months time to see if their pricing plans vs the effect to your conversion ratios really has balanced out? (I'm not being snide, I'd be genuinely interested how it works out) I agree with how market positioning is so important to a sta…

Feel free to ask me about that in six months. I'm always grateful for blog post topics. It is intrinsically hard to attribute improvements in conversion rate to a single cause, except in an A/B test. It will be sensitive to changes in the traffic mix, seasonality, strategic decisions, etc etc.

I'd love to read a blog post about bingo cards' seasonality. For real.

Re: KISSmetrics' bizarre pricing decision

#55

Here's something that I don't get. Is funnel analysis even suitable for a monthly subscription service? Unless you're mucking around with your checkout funnel constantly (why?) this seems more like the kind of tool that I'd use once. Or at least very, very infrequently. Discover what's wrong, fix it, the end . The weird thing is, psychologically I would have no problem paying a couple of hundred bucks for a one-off e…

Funnels are never done because a) the market changes as you become more popular, have new competitors, the economy tanks, etc and b) there's no perfect funnel - you might see diminishing returns but you never know what will make a big difference.

Good point but over a long term, markets simply aren't that volatile.

@fookyong's comment contains a lot of truth. If using Kissmetrics on a "Kissmetrics-optimized" site generates diminishing returns, surely that is a cause for concern. The original author's change rapidly enough to suggest that your experiments will yield increases in ROI

Re: KISSmetrics' bizarre pricing decision

#56

Cindy here - if you were a beta user or ever asked a KISSmetrics question, you probably talked to me. We at KISSmetrics did not come to our pricing decision lightly. After over 6 months in beta, we looked at the data and identified our happiest, most engaged customers - the people who were asking questions, making suggestions, and generally getting the most value out of the product, and priced it in accordance with t…

Hi Cindy,

I'm a subscriber to your blog and I love your work. I was late to the beta test run so I missed out. I've been waiting on the sidelines for the big launch and whilst I think the pricing is pretty decent and fair (after all, it is pretty close to our pricing at Trafficspaces - http://www.trafficspaces.com/plans/), I instinctively predicted this sort of backlash, especially because there was no free entry plan, however limited.

Having said that, I'm sure your decision was well thought out. After all, you are in the funnel optimization business.

A quick shout out to Neil Patel - a very smart chap.

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