Gartner Research

How to Increase the Effectiveness of Tiered Product Offers

Published: 15 January 2019

ID: G00373269

Analyst(s): Carrie Cowan

Summary

Tiered — or “Good, Better, Best” — product offers can enable technology providers to raise average prices and capture more customers. Technology product managers must be diligent in their focus on customer needs to make the upsell case, from one tier to the next, more compelling.

Table Of Contents
  • Key Challenges

Introduction

Analysis

  • Strive for Balanced Tiers to Maximize Returns
    • Revisit Segmentation to Bring Customer Fit, Needs and Wants Into Focus
    • Assign Feature Values to Guide Configurations
    • Make Realistic and Proportional Choices to Reduce the Risk of Cannibalization Between Tiers
    • Align Tiers to the Intended Business Outcome

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