Point Pricing for Agencies: Q&A on Making the Transition to Point Pricing [Session 3]

By | October 24, 2018
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Presented by HubSpot, Point Pricing for Agencies is a three-course, on-demand series featuring more than a dozen exclusive resources, including pricing strategy documents, tools and templates that your agency can use to establish, launch and evolve its own point pricing model.

If you’re just now tuning into Point Pricing for Agencies—welcome. We’re excited to have you. If you’ve been following along to our thee-part blog series, welcome back. 

With Session 1 and Session 2 complete, it’s time to tackle Session 3: Positioning, Selling and Transitioning Clients to Point Pricing. With various guides and checklists, this final session gives you access to a wealth of knowledge to strategically introduce point pricing to internal and external teams. 

Ready to launch your own value-based pricing model? Here are a few questions covered in Session 3: Positioning, Selling and Transitioning Clients to Point Pricing

Q: On average, how long does it take to roll out point pricing for a small agency?

A: Point pricing is an iterative process. Give your team time to find a single value metric upon which to build a new model. Here are 12 questions to help you get started.

Once you’ve established your own value-based pricing model, talk to your team about next steps. Don’t rush rollout if it means confusing team members and clients. After all, the object of point pricing is to create value, while driving productivity, profits and performance in the process. 

Q: For a phased point pricing rollout, which internal teams and clients do you suggest piloting the model to first?  

A: When piloting point pricing, roll the model out to new clients first. This is an easy transition for clients who are unaware of previous pricing methodologies. As for existing clients, we’d introduced point pricing upon their annual contract renewal.

Our agency chose to gradually roll out point pricing to clients when it made most sense for them.

One critical step in the process is to ensure that existing clients receive the same level of service they’re used to. To do this, we looked back at the last 6+ months of services data to determine how many points a client would have received were they on the new pricing model. We then calculated a grandfathered price per point for each existing client that ensures the agency delivers the same, average amount of services — more seamlessly transitioning from hours to points. We showed the math too, just to give clients confidence!

Q: How do you present a GamePlan to a client?

A: GamePlans are organized by campaigns and projects. Campaigns are always goal-based, and projects are those tactics that funnel up to achieving the campaign goal. Campaigns can be easily scaled up or down based on conservative, moderate or aggressive performance goals.

At PR 20/20, our GamePlans are housed in Google Sheets, which the client has access to 24/7. When presenting a GamePlan, we typically create a deck for the client to visualize and conceptualize projects. This gets everyone on the same page from the start. 

>>> The paid Point Pricing for Agency series includes dozens of templates, including a monthly GamePlan and Account Dashboard workbook, as referenced above. Click here to see a full list of resources available in the paid series.

Q: How do you balance value-adds and relationship building, while remaining true to a point limit?

A: Value-adds are critical to client growth and retention, but not all clients are rated equal. For clients with great growth potential, we do our best to create value at each touch point. Similarly, we tend to go above and beyond what’s asked of us for legacy clients as our way of saying thanks.

With any value-add, make sure to communicate both the point value and dollar amount to the client. This goodwill goes a long way in business. 

Q: Do you reward clients who renew their contract year-over-year?

A: Acquiring new customers is important, but retaining them accelerates profitable growth for agencies. While campaign clients don’t expect rewards from us, they can earn renewal, referral and add-on bonus points, and enjoy other value-add features. From a relationship-building standpoint, this makes sense for our agency. It enables us to build goodwill and further nurture our partnership for years to come. 

>>>Click here to see PR 20/20’s Pricing Packages.

Register for Point Pricing for Agencies Today 

Here at PR 20/20, we’re committed to helping agencies establish, launch and evolve point pricing models for continued success. 

“The point pricing training gave us all the information we need to determine how best to implement this pricing strategy in our agency. The actionable process and documents gave us all the tools we need to get started. These sessions saved us months of planning, trial and error implementation, and the benefit of PR2020's own experiences and insight, which are invaluable.” - Cindy Penchina from Hudson Fusion

If you’ve had a chance to watch all three sessions, but still need a refresher on point pricing—don’t fret! Our CEO Paul Roetzer (@paulroetzer) sat down with Jeff Julian (@jjulian), CEO of Squared Digital, co-founder of EnterpriseMarketer.com, and author of Agile Marketing: Building Endurance for Your Content Marketing Teams to talk about the point pricing model in depth. Click here to access the podcast.

Interested in learning more? Here’s a list of links with additional information: 

If you haven’t had a chance to watch the on-demand educational series, click here to register. You’ll get access to all webinar recordings and materials, plus downloadable slide decks, templates, worksheets and more. Are you a HubSpot partner agency? Get access to your unique discount code here.

Are you a HubSpot partner agency? Get access to your unique discount code here.