Pricing that grows with usage
Parcelwise
2021
Product manager, with finance and sales
Flat seats punished small stores and undercharged big ones. We moved to usage-based pricing without losing customers.
+22%
expansion revenue
The problem
Parcelwise charged per seat. Small stores paid for logins they didn't need, and large stores shipped thousands of parcels for the same price.
My role
I led the project with the head of finance and two sales leads. I wrote the plan, the customer emails and the migration rules.
What we did
Modeled every customer's bill under three pricing options before choosing one.
Gave existing customers six months on their old price and a calculator to see the new one.
Called the 40 largest customers ourselves before the email went out.
Result
Expansion revenue grew 22% in the first year. Churn in the migration quarter was the same as the quarter before.