Is more features the only answer to increasing ACV?

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JASON LEMKIN

Features usually are not the key to increasing ACV — at least not directly.

In fact, in 95% of cases, charging for 95% of new feature is tough. Because in SaaS, the customer expectation is that the product will constantly get better. At least, every quarter. Part of the reason you agree to a recurring revenue product is for recurring improvements to that product.

But … what customers (with some positioning help) are OK paying more for is more of a solution.

Something that solves a progressively bigger and more important problem for them.

A piece of that is the new features required for that Bigger and Better Solution. But just a piece.

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Published on May 27, 2016
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