What is your approach to a new feature launch and how to price & package it in relation to existing plan tiers?

For new products especially, pricing and packaging should inform, and be informed by the broader GTM strategy (it's why I'm so bullish about the role PMMs play in contributing to P&P decisions).

For example:

• Our GTM strategy answers "Who is the market, persona?"

  • how do they prefer to buy? (PLG vs. direct sales),

  • How long is the deal cycle?

  • How senior is the economic buyer?

  • and how formalized is the procurement process?

  • Does the customer need implementation services, integrations or infrastructure effort to realize value?

• The answers to these questions help you determine the minimum viable, and likely deal sizes required to sustainably generate margin using these channels. The more boundary conditions like this you can apply to your pricing strategy, the faster you will arrive at a high-confidence hypothesis you can test in the market.

Another example:

• The GTM strategy will outline the likely TAM/SAM/SOM, but for Pricing and packaging, you need to be crystal clear on the FIRST segment.

• Honestly, unless you work at Amazon, if you're launching a new product alongside existing product lines, the reality is that your beachhead market will almost entirely comprise existing customers. This means you're going to align to existing pricing and packaging principles that you've already trained your customers on - e.g. if your company always offers a free tier, holding back high-value features in up-sell editions, you should apply that same approach here to reduce the impediment to buy.