Kapeesh Saraf is the Senior Head of Products at Coursera, which allows you to learn and enhance your skills with courses, certificates, and degrees online from world-class universities and companies such as the University of Illinois, Duke University, Google, IBM and Stanford.

He recently spoke at Adobe in San Jose and discussed product pricing. Saraf also shared examples of how product managers can keep pricing front and center as they build their product roadmaps.

Product Pricing as a Product Feature

A staggering 72 percent of new product innovations fail to reach their revenue goals.

As Kapeesh Saraf discussed in his presentation, the pricing model and packaging or bundling of a product have a profound impact on the success of a product. Simply put, pricing is an important lever to help achieve your product goals.

For many product teams, the mistake they make is not asking the willingness to pay question from the getgo. The approach for many is to figure out what people want, build the product, determine the price, and then test and optimize. In his experience at Coursera, Saraf has succeeded with another approach. A better way to do it is to first ask what price are people willing to pay for the things they want. Then, they should identify target users and determine the price. Finally, the last step is to build the product.

Product teams should think about how pricing affects user psychology. They should ask themselves these three questions:

  1. What action do you want to drive?
  2. What are the behavioral or psychological heuristics that correspond with the usage metric that you want to drive?
  3. Is there a way that changing the pricing model could drive behavior that you want?

 

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About the Speaker
Kapeesh Saraf
Coursera Senior Director
Kapeesh Saraf is the Senior Head of Products at Coursera. In this role, he oversees user growth and consumer (B2C) as well as Degrees products. Before Coursera, Kapeesh was Product Head at Zynga. Kapeesh received his Master’s degree in Management Science from Stanford University and earned a Bachelor of Engineering from the University of Pune in India.

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