Gartner Research

4 Best Practices for Tech CEOs to Communicate Price Increases to Existing Customers

Published: 16 August 2022

Summary

Nearly every tech CEO faces the same pricing dilemma — labor rates and supply costs are increasing, but customers may leave if prices increase. In this research, we provide four best practices tech CEOs can use to communicate price increases to existing customers in a way that minimizes churn.

Included in Full Research

Overview

Key Findings
  • Buyers may assumeminimal price increases, if expectations aren’t set appropriately during contract signing.

  • When communicating price increases, tech CEOs often focus solely on their own internal business issues, as opposed to the value they deliver to clients.

  • Tech CEOs frequently rely on generic price announcements for all customers versus personalized communications that combine price increases with realized customer value.

  • Tech CEOs frequently lack the capability to consistently capture and communicate back customer quotes of the value those customers received.

Recommendations

Tech CEOs who need to effectively manage their pricing strategy to ensure retention and uplift should:

  • Set client expectations by documenting price

Clients can log in to view the entire document.

Access Research

Already a Gartner client?

To view this research and much more, become a client.

Speak with a Gartner specialist to learn how you can access peer and practitioner research backed by proprietary data, insights, advice and tools to help you achieve stronger performance.

By clicking the "Continue" button, you are agreeing to the Gartner Terms of Use and Privacy Policy.

Gartner research: Trusted insight for executives and their teams

What is Gartner research?

Gartner research, which includes in-depth proprietary studies, peer and industry best practices, trend analysis and quantitative modeling, enables us to offer innovative approaches that can help you drive stronger, more sustainable business performance.

Gartner research is unique, thanks to:

Independence and objectivity

Our independence as a research firm enables our experts to provide unbiased advice you can trust.

Actionable insights

Not only is Gartner research unbiased, it also contains key take-aways and recommendations for impactful next steps.

Proprietary methodologies

Our research practices and procedures distill large volumes of data into clear, precise recommendations.

Gartner research is just one of our many offerings.

We provide actionable, objective insight to help organizations make smarter, faster decisions to stay ahead of disruption and accelerate growth.

Tap into our experts

We offer one-on-one guidance tailored to your mission-critical priorities.

Pick the right tools and providers

We work with you to select the best-fit providers and tools, so you avoid the costly repercussions of a poor decision.

Create a network

Connect directly with peers to discuss common issues and initiatives and accelerate, validate and solidify your strategy.

Gartner Tech Growth & Innovation Conference

Join the world’s leading IT and business leaders to get an update on accelerating tech growth in a new era of transformation and technology trends.

©2022 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. and its affiliates. This publication may not be reproduced or distributed in any form without Gartner’s prior written permission. It consists of the opinions of Gartner’s research organization, which should not be construed as statements of fact. While the information contained in this publication has been obtained from sources believed to be reliable, Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information. Although Gartner research may address legal and financial issues, Gartner does not provide legal or investment advice and its research should not be construed or used as such. Your access and use of this publication are governed by Gartner’s Usage Policy. Gartner prides itself on its reputation for independence and objectivity. Its research is produced independently by its research organization without input or influence from any third party. For further information, see Guiding Principles on Independence and Objectivity.