Setting the price for a product you intend to sell is hard, especially when pricing usually changes over time. Cryptolens’ new AI feature helps software providers set the price by analyzing how each individual user uses their software.
Problem with existing pricing models
It is often challenging for software providers to price their product optimally.
A good example that demonstrates this is when you set the price for accounting software. Imagine you have two groups of customers: those that use the software regularly in their profession (eg. accountants helping other companies) and those that only use it once a month (eg. small businesses). It makes sense to have different pricing models for these two groups: professionals can be charged monthly (and are very likely to pay more) and the smaller business can pay per usage (eg. per generated monthly report).
As a result, software providers are able to increase their revenues and capture both customer groups by taking into account the true value the software has for each group, and adjusting the pricing model to meet the needs for each group.
How Cryptolens’ new AI feature optimizes revenue
Cryptolens’ new AI feature analyzes the usage information generated by each user (and the history from previous users) and determines the value a product (and its features) has for each user, and then helps to determine the best pricing model for that particular user or user group.
For example, if the value of the features is higher than the price of the product, it would be reasonable to increase the price. If, however, only a subset of the product’s features are used, a new product based on a subset of the features offered at a lower price could be a solution (or potentially suggest an alternative licensing model such as usage-based model).
The goal is to provide insights on the value of a product and its features for each user, and assist in creating new product offerings with more optimal pricing.
Getting started
In order to benefit from our AI analysis, the following is required:
First, you need to register each time a customer interacts with a certain feature of the product (if you have a licenseKey object, you can call the new RegisterEvent method). For example, when they start the salary module (if it’s an accounting software), you can send FeatureName=”SalaryModule” and EventName=”start”. If they generate a report, you can keep the feature name, but change the event name to “report_generated”.
The second step is to register successful transactions (eg. when the customer buys the software). In that case, you can still call RegisterEvent method, and include the value and currency parameters.
Please get in touch with us if you need any help setting this up. We are currently looking for beta testers and would be happy if you can participate. You can reach out to us at [email protected].
Once enough data is collected, you will be able to see it in the analytics dashboard.