Alternative Pricing: Letting Go of Bad-Fit Customers is For the Best

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ChartMogul lost a large number of legacy customers when migrating them to a new pricing model, however, the highly engaged `good fit` customers enabled ChartMogul’s continued growth. Early Pricing Experiments ChartMogul’s pricing model was customer-based at the company’s inception. The price you paid for using CharMogul was dependent on the number of customers your business served. Even in the early years of ChartMogul, we encountered several challenges with customer-based pricing: We frequently couldn’t close deals without discounting. We encountered a lot of friction with the entry-level pricing. Paying customers that were growing into higher pricing tiers would reach out regularly to ask for discounts. Ultimately, we ended up with many customers having discounts and all sorts of individual agreements and a large number of plans. There was a fundamental lack of a price to value alignment.