Introduction: Importance of Sales Pipelines in Different Pricing Models

When it comes to evaluating different pricing models for your business, it's important to understand the role that sales pipelines play in the decision-making process. A sales pipeline refers to the sequence of stages that a customer goes through, from initial contact with your business to closing the sale, and beyond. Sales pipelines are an essential part of any business model, as they help you understand your customers' buying habits, identify areas for improvement, and ultimately drive revenue growth.

Why Sales Pipelines are Important

Sales pipelines are important for a variety of reasons:

• They help you understand your customers: By mapping out the different stages of your sales pipeline, you can gain valuable insights into your customers' behavior and preferences.


• They allow you to identify areas for improvement: By closely examining each stage of your sales pipeline, you can pinpoint any inefficiencies or bottlenecks that may be hindering your sales process.


• They drive revenue growth: A well-optimized sales pipeline can help you increase conversions, close more deals, and ultimately drive revenue growth for your business.

How Sales Pipelines Differ in Different Pricing Models

The way sales pipelines function can vary depending on the pricing model you choose for your business. For example, a subscription-based pricing model may have a longer and more complex sales pipeline as customers are committing to a longer-term relationship with your business. On the other hand, a pay-per-use pricing model may have a shorter and simpler sales pipeline as customers can quickly make a purchase and move on.

Understanding how sales pipelines differ in different pricing models is essential for choosing the right pricing strategy for your business. By analyzing the strengths and weaknesses of each model, you can make an informed decision that will help you achieve your revenue goals and drive long-term growth.

Traditional Pricing Model

The traditional pricing model is a method of pricing products or services that has been used for decades. This model is based on a fixed price for the product or service that does not change over time, regardless of fluctuations in demand or supply.

Structure of the sales pipeline

The sales pipeline for the traditional pricing model has five main stages:

• Lead generation: This stage involves identifying potential customers and reaching out to them to generate interest in the product or service.


• Qualification: Once leads have been generated, they are assessed to determine whether they meet the criteria for a potential customer.


• Presentation: At this stage, the product or service is presented to the potential customer in order to persuade them to make a purchase.


• Closing: After the presentation, the salesperson aims to close the deal and get the customer to commit to the purchase.


• Follow-up: Finally, the salesperson follows up with the customer to ensure they are satisfied with the product or service and to build a relationship for future sales.

The sales pipeline for the traditional pricing model is designed to move the customer through the stages, from initial interest to final purchase. Each stage is important in building trust and establishing a relationship with the customer, with the ultimate goal of achieving a sale.

While this pricing model has been successful for many businesses in the past, it may not be the most effective method for all industries or products. As the market becomes increasingly competitive, businesses may need to explore alternative pricing models to remain successful.

Value-Based Pricing Model

Value-based pricing model is a pricing approach that focuses on creating and delivering value to the customer rather than basing the price on cost or competition. In this model, the price is set based on what the customer is willing to pay for a solution or product that meets their specific needs. It is a customer-centric approach that helps businesses increase profits, customer satisfaction, and loyalty.

Definition of Value-Based Pricing Model

The value-based pricing model is a pricing strategy that sets the price of a product or service based on the value it provides to the customer. This approach differs from the traditional cost-plus pricing model, where the price is based on the cost of production plus a set profit margin. Value-based pricing takes into account what the customer is willing to pay for the product or service, based on the perceived value it offers.

How the Sales Pipeline Differs from the Traditional Model

The traditional sales pipeline focuses on convincing customers to buy based on features and benefits rather than value. Value-based pricing flips this approach by focusing on creating and delivering value to the customer to increase the likelihood of a sale. By demonstrating how a product or service meets the specific needs of the customer, value-based pricing can increase customer satisfaction and loyalty, leading to repeat business and referrals. This approach also allows businesses to charge higher prices as customers are willing to pay more for a product or service that delivers value.

Focus on Creating and Delivering Value to the Customer

To implement a value-based pricing model, it is crucial to understand the specific needs of the customer and create a solution that meets those needs. This involves focusing on the benefits and outcomes that the customer will receive from using the product or service, rather than just the features. By creating solutions that are tailored to the customer's needs and deliver measurable value, businesses can establish themselves as industry leaders and foster long-term relationships with their customers.

• Understand the customer's needs and pain points


• Create a solution that meets those needs and delivers value


• Focus on benefits and outcomes, not just features


• Establish yourself as an industry leader through customer-oriented solutions

Overall, a value-based pricing model can help businesses increase profits, customer satisfaction, and loyalty. By focusing on creating and delivering value to the customer, businesses can establish themselves as industry leaders and foster long-term relationships with their customers.

Interested in learning more about how value-based pricing can benefit your business? Contact us at ExactBuyer to see how our real-time contact and company data solutions can help you build more targeted audiences and increase your sales pipeline.

Subscription-Based Pricing Model

Subscription-based pricing model is a type of pricing strategy where customers pay a recurring fee for access to goods or services. In this model, the sales pipeline is structured with various stages that include lead generation, qualification, trial periods, conversion, and retention.

Lead Generation

Lead generation is the process of attracting potential customers who are interested in a brand's offerings. The first step in the subscription-based pricing model is generating leads. This can be done through various methods such as email marketing, social media advertising, content marketing, and more.

Qualification

Qualification is the process of identifying and prioritizing leads based on their level of interest and potential to convert. This stage involves assessing the lead's needs, budget, authority, and timeline. Only the most qualified leads move on to the next stage.

Trial Periods

Trial periods give potential customers a chance to try out the product or service before committing to a subscription. During this stage, businesses may offer free trials or freemium versions of their products to entice customers to subscribe.

Conversion

Conversion is the process of turning leads into paying customers. This stage involves offering different subscription plans with various features or benefits to suit the customer's needs and budget. The conversion stage may also involve discounts, incentives, or special offers to encourage customers to commit.

Retention

Retention is the process of keeping customers subscribed to the product or service. This stage involves ensuring customer satisfaction, providing excellent customer service, and continuously delivering value to customers. Retention is important in the subscription-based pricing model as it helps to maintain recurring revenue and build a loyal customer base.

Overall, the subscription-based pricing model is a popular pricing strategy used by many businesses today. By structuring the sales pipeline with lead generation, qualification, trial periods, conversion, and retention, businesses can effectively attract and retain customers who are willing to pay a recurring fee for their product or service.

Comparing the Sales Pipelines

If you're in the market for a sales pipeline solution, it can be overwhelming to navigate the different pricing models and decide which one is the best fit for your business. In this article, we compare three pricing models and their respective sales pipelines, including their strengths and weaknesses.

Pricing Model 1: ExactBuyer Sales Plan

• Monthly pricing at $495


• Unlimited real-time employment updates and company search


• Unlimited search, AI-powered search, Native Hubspot and Salesforce integrations


• Up to 4 seats per plan

The strengths of the ExactBuyer Sales Plan are its real-time updates and AI-powered search capabilities. These features make it easy to find and target your ideal customer profile. The integrations with Hubspot and Salesforce also streamline the sales process. However, the price point may be too high for small businesses or those with a limited budget.

Pricing Model 2: ExactBuyer Recruiting Plan

• Monthly pricing at $249


• Access to over 270+ million verified candidates with direct emails, mobile phones, and social details


• Unlimited real-time employment updates, AI-powered search, and boolean searches, skills, certifications, interests, work history, education, and +75 other attributes

The ExactBuyer Recruiting Plan is ideal for businesses looking to hire top talent. The direct access to millions of verified candidates with detailed information allows recruiters to pinpoint their ideal hire quickly. The real-time updates and AI-powered search also make the hiring process seamless. However, this plan may not be necessary for businesses with less frequent hiring needs.

Pricing Model 3: ExactBuyer Marketing Plan

• Monthly pricing starting at $899


• Native Hubspot & Salesforce integrations


• Schedule Account & Contact Enrichments


• Market Mapping, Reporting & Analytics


• Identify champions & decision maker job changes


• Real-time audience generation and deployment across every channel: Email, Phone, Text, Ad Audiences

The ExactBuyer Marketing Plan is designed for businesses looking to generate and target leads effectively. The Market Mapping, Reporting & Analytics features help identify and target champions and decision-makers easily. The integration with Hubspot and Salesforce also supports the sales process while the deployment capabilities on every channel make it easier to communicate with prospects. However, the high price point of this plan may not be feasible for small businesses.

Ultimately, the best pricing model depends on the unique needs and budget of your business. Consider which features you need, how frequently you will use the pipeline, and the price point that is feasible for your business.

Conclusion

Understanding the sales pipeline and choosing the right pricing model for your business is crucial for success. In summary, it is essential to weigh the pros and cons of each pricing model and consider your company's specific needs and goals before making a decision.

Summary of Importance

• Understanding the sales pipeline can help businesses identify areas for improvement and increase revenue.


• Choosing the right pricing model can also impact revenue and cash flow.


• The right pricing model can help businesses attract and retain customers while staying profitable.

How to Choose the Right Pricing Model

• Consider your target audience and their willingness to pay.


• Evaluate your company's financial goals and objectives.


• Compare the pros and cons of each pricing model, such as subscription or pay-per-use.


• Assess the scalability and flexibility of each pricing model.


• Research competitors and their pricing strategies.

By taking the time to understand your sales pipeline and choosing the right pricing model, you can streamline your sales process, generate more revenue, and build a strong customer base.

How ExactBuyer Can Help You

Reach your best-fit prospects & candidates and close deals faster with verified prospect & candidate details updated in real-time. Sign up for ExactBuyer.