How do you diagnose whether user churn is driven by high pricing or low perceived value?
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Whenever a user cancelled, the most common reason selected was "too expensive." Naturally, we thought about dropping our prices or creating a cheaper tier.
When we actually talked to cancelled users, we discovered the price wasn't the real problem. They were happily paying double for another tool that saved them 30 minutes a day. Our tool just sat in the background because they didn't see where it fit into their daily priority list.
For founders who have adjusted their pricing model: how do you distinguish between actual price resistance and a failure to demonstrate clear ROI?
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I think one of the best ways is to ask what they expected the product to save them in time or money and compare that with what they actually got If the value is clear but they still say the price is too high then it is probably a pricing issue If they cannot explain the value then the bigger problem may be positioning and ROI communication