How Amplitude’s Recent Pricing Model Change Impacts Value and Customer Loyalty

Amplitude is a platform that helps companies measure the success of their product by tracking conversion, engagement, and retention data. It helps you understand what’s working and what’s not with your product so you can improve it.

Amplitude started 10 years ago with the goal of making it easier for companies to build amazing products. And they listen to their customers to continuously improve their platform.

Amplitude recently made a change to its pricing model.

As a product manager, it is crucial to understand the value of the product you are delivering to customers.

This is what sets successful companies apart from those that struggle.

Previously, Amplitude charged customers based on the number of tracked events.

This made sense for the company as the cost of handling events increased with the volume of events. However, this model caused friction and uncertainty for customers who found it difficult to forecast the number of events and align the cost of analytics with their company’s growth.

Recognising this issue, Amplitude shifted its value metric from the number of tracked events to the number of monthly trackable users.

This change aligns better with customers’ goals, as they focus on having more users and not necessarily more events.

The shift in the value metric provides clarity to customers, who now understand the value they are paying for.

This, in turn, leads to increased customer satisfaction, as they know they are getting what they are paying for.

The important lesson that can be learned from Amplitude’s recent pricing change is that a clear understanding of the core value of the product is essential to success.

By aligning growth and monetisation with this core value, companies can charge fairly, grow quickly, and keep customers happy.

Finding the core value metric may be challenging, but it will provide a solid foundation for continued success once it is clear.

Grow and retain your user base and customer lifetime value.

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