Offer & Price Fit: Are you giving customers what they actually value?

Because even the best customers won't stick around if what you sell doesn't feel right for them.

You've got your customer targeting sorted. You know who your most valuable segments are (see Blog 5).You're spending wisely to acquire them.

But here's the next challenge:

Are you offering them something they actually value at a price they're willing to pay, long term?

In recurring revenue businesses, where every month is another chance for a customer to say ‘yes’ or ‘no’, product-market fit isn't enough. You need product-value fit and pricing that supports it.

What's offer and price fit?

It's the sweet spot where three things align:

1. What your customer needs

2. What your product delivers

3. What your pricing communicates about the value

   
   

When those three are out of sync, you get:

• Churn from customers who don't feel they're getting value

• Margin erosion from unnecessary discounting

• Confusion in messaging and team incentives

• Missed opportunities to monetise actual customer demand

  
  

Signs your offer and price are misaligned

• You're constantly discounting to win or keep customers

• Customers churn just after their first billing cycle

• You're attracting customers who never use the full product

• Support teams are handling ‘I didn't realise this didn't include...’ queries

• Upgrades are rare, even when usage increases

• NPS (customer satisfaction) is flat or declining despite solid delivery

  
  

Any of these sound familiar? Then let’s fix it.

5 Steps to align offer, value & price

1. Start with the customer outcome

Your product isn't the value.

The result it enables is.

What does success look like from your customer's point of view?

💬 Example: If you run a meal subscription box, your value isn't ‘recipes + ingredients. It's 'easy, healthy dinners without the hassle.'

Price the outcome, not the input.

2. Revisit your core packages or tiers

Do your current offers reflect how different customer segments use your product?

💡 Consider:

• Usage-based tiers

• Feature-based tiers

• Outcome-based bundles

• Lifecycle pricing (e.g. new users vs. power users)

Tip: High-churn segments often don't need everything in your standard tier but they might pay for a more focused, simplified version.

3. Sense-check your price anchors

Price doesn't just reflect value it shapes perception of value.

• If it's too low, customers may assume it's basic or unreliable

• If it's too high, they'll question ROI especially early in their lifecycle

4. Run a value gap audit

Are you charging for what customers value most?

Often, businesses give away their best differentiators and charge for features customers don't really care about.

Example: A client I worked with found customers valued setup support far more than extra analytics. We changed the pricing model and saw higher conversions and better retention.

5. Test and learn in micro segments

You don't have to relaunch your whole pricing structure at once.

Run A/B tests with:

• New packages for specific customer types

• Pricing messages focused on outcome vs. features

• Onboarding flows tied to ‘value realisation’ moments

• Upgrade nudges based on behaviour triggers (not just time)

Track how it affects engagement, retention, and ARPU.

Real-World Snapshot

I once worked in a price-sensitive, low-margin industry where every sales conversation centred on cost.

It was a race to the bottom and the sales teams felt they had nowhere to go.

The breakthrough came when we trained sales teams using real-life case studies.They began bundling products to solve actual customer problems. Shifting the conversation from price to value.

As a result:

• Cross-sell improved

• Margins increased

• Churn fell

• Sales teams had more meaningful conversations

  
  

The fix wasn't to drop the price, it was to deliver more relevant value through a multi-product approach.

Pricing Isn't a finance task. It's a growth strategy

In recurring models, pricing is one of your most powerful levers to:

• Reduce churn

• Increase margin

• Drive in-life value through cross- and up-sell

• Signal value and build trust

• Align team behaviour

• Shape product strategy

  
  

Fit beats flashy

Your pricing and offer don't need to be complex.

They need to be coherent.

• Understand what your customers actually value

• Match packages to usage and desired outcomes

• Use price to reinforce clarity and confidence, not just to close deals

  
  

When was the last time you reviewed your pricing through a customer lens?