Product packaging is how you divide your product's capabilities into offerings that different buyer segments will pay different amounts for. Done well, packaging increases average contract value by giving buyers a clear reason to pay more for more value, lowers the barrier to entry for buyers who need to start small, and creates a natural expansion motion as customers grow.
Done poorly, packaging confuses buyers during evaluation, creates internal pricing debates that slow deals, and forces your sales team to customize every deal from scratch because no package actually fits how customers use the product.
Step 1: Understand how your buyers segment themselves
Packaging should reflect how buyers naturally segment -- not how you want to categorize them. The starting point is not a spreadsheet of features; it is an understanding of how different customers use the product and what they value most.
Step 2: Design the package structure
Step 3: Validate and launch
Product packaging strategy checklist
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