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For B2B Marketing Professionals

Best Practices For Software Pricing And Licensing

Grow Your Software Products' Revenue By Aligning Pricing With How You Deliver Business Value, While Balancing Simplicity And Fairness

September 5, 2014

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Why Read This Report

Forrester speaks with dozens of software company executives each year who are finding it difficult to decide the best way to package and price their software products, especially as they move their solutions to a cloud-based business model. Technology changes have made familiar metrics such as per processor obsolete, but there is as yet no consensus on what alternatives the industry should use instead. This report summarizes the best practices that Forrester has identified from studying leading software providers' pricing and licensing, and also from helping hundreds of software buyers negotiate and manage software contracts. It will help sales enablement (SE) professionals such as pricing managers and product marketing managers decide how to package software into price list products, pick licensing metrics for those products, and define discounting rules to guide sales teams to the optimum price level. This report is particularly relevant to the technology industry but also useful for marketers in other industries as they add software services to their offerings.

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Table of Contents

  • Badly Designed Pricing Extends Sales Cycles And Loses Deals
  • Good Price Design Maximizes Current Deals And Leaves Upsell Room
  • Pricing Best Practice No. 1: Balance Simplicity And Fairness
  • Pricing Best Practice No. 2: Align Licensing With Value Drivers
  • Pricing Best Practice No. 3: Balance Science And Art When Discounting
  • Forrester's Software Pricing And Licensing Next Practices
  • RECOMMENDATIONS

  • Start By Researching Customers' And Sales' Opinions
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