FreshSales Suite - Monetization

Some Stats Around CRM

91% of companies with ten or more employees use a CRM systemThe average ROI for CRM spending is $8.71 for every dollar spent47% of companies saw their customer retention rate increase when they started using CRM.Customer relationship management can improve sales by 29%.Companies that implement CRM can see a 300% increase in conversion rates.40% of companies around the globe are not using customer relationship management at all. Source

What is FreshSales Suite for Enterprise

Freshsales suite is an all-in-one CRM uniting sales and marketing providing a 360° view of customers. The following value props is dedicated to small to medium and enterprise customers

1. Get a 360° view of a customer. Capture all customer interactions in one place.
2. Close deals faster by sending the right message at the right time
3. Sales and marketing can work together to deliver personalized customer experiences.
4. Attract the best leads and Generate 10X more opportunities by turning your website into a lead-generation machine.
5. Design multi-channel nurture campaigns and target customers via emails, SMS, WhatsApp, and chat

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Litmus Test -

To determine if a product is ready for monetization, you should assess three core signals.

1. Retention - The first signal is retention, which refers to the ability of a product to retain its customers over time. Freshsales suite, a successful product by Freshworks listed on NASDAQ, has already demonstrated monetization potential and is widely used by customers.
2. Deeper Engagement

Defining the Casual, Core, and Power Users -

Freshsales Suite's core value proposition is multichannel engagement from a single platform, which appeals to all types of users - casual, core, and power. This feature allows users to interact with customers through various channels such as email, chatbots, SMS, phone, and more, all from a centralized location. As users start using the suite, they quickly realize the benefits of this multichannel engagement and how it can improve their sales and marketing efforts. This realization drives casual users to become core users, as they see the value in getting the maximum benefit from the platform. This makes Freshsales a cost-effective solution, as users can upgrade from casual to core to get the most out of the suite.
3. Willingness to pay
Willingness to pay for a B2B SaaS product depends on many factors:

• Clearly established the need for the SaaS
• Competitive Pricing
• Impact on user Productivity
• The measure of ROI (if possible)
• Customer Support

After conducting interviews with several Freshsales users and reading about their success case studies, two unique selling points (USPs) stand out: the ability to engage with customers through multiple channels and the platform's user-friendly interface. Additionally, customers appreciate the prompt and efficient customer support provided by Freshsales. However, the pricing may be perceived as high especially in India, especially for companies beginning to scale and want’s to onboard multiple users.

Step 2 | Substitute pricing

Majority of the competition has the following pricing:

• MAU based pricing
• Trial Period version to experience the product
• Few are offering Free Plan

Step 3 | Pricing Design

Step 3.1 → Who to chargeFor the core value prop around sales & marketing automation, the natural frequency can range from multiple times a day to once a week Because having a 360-degree customer overview will be the primary responsibility of the marketing team/company. Within this natural frequency range, on the following parameters, users can be charged, especially users -

1. Imported their customer contacts into a fresh sales database
2. Have started creating templates in one or more of the channels Emails/SMS/Whatsapp
3. Have consistently launched their Sales/Marketing campaigns for 4 consecutive weeks

Step 3.2 → When to chargeIn the case of FreshSales Suite, the platform currency revolves around efficiency and time. Users are able to save time by sending the appropriate message at the right time, leading to faster deal closures. Additionally, the comprehensive solution provided by FreshSales Suite reduces IT complexity and cost, making users more efficient.

Visitor: Day 1

• The user becomes aware of the product through online or offline sources and visits the landing page to explore more.

Prospects: Day 2-5

• The user learns more about the product's core features and all subproducts and considers if it can add value to their ongoing activities and business.
• The user decides to give the product a try and signs up for a free trial. They go through the entire onboarding process, which takes them 21 days to complete. During this time, they experience the "Aha" moments of the product.

Activated user: Day 5-26

• During the free trials, The user enters all the required data and onboards all the necessary details to utilize the product for their core marketing, sales, and customer experience activities.
• Imported their customer contacts into Freshsales database
• Have started creating templates in one or more of the channels Emails/SMS/Whatsapp
• Launch their first Sales/Marketing campaigns

Committed User: Day 30-40+

• The product now stores all the customer, sales, and marketing data. The user has formed a habit of using it for their daily activities and sees an increase in productivity, time-saving, and ease of deal closing.
• Successfully launch their Sales/Marketing campaigns for 4 consecutive weeks

Step 3.3 → What to charge forPerceived Value is Clear Time & Efficiency - FreshSales Suite is saving Time, Costs, and effort. FreshSales should primarily charge for Access to multiple tools for customer engagement it’s offering. There’s also an element of sharability with onboarding teams to manage the process.Step 3.4 → How much to charge?We can quantify the perceived value vs perceived cost for Freshsales Suite by looking at the ROI (Return on Investment) that customers experience after using the product. A company spends Rs. 5000/month on Freshsales Suite and it helps them close an extra 10,000 in deals per month, the ROI would be 20x.The perceived value of Freshsales Suite includes features like multichannel engagement, the convenience of use, and prompt customer support, which can be perceived as high value by potential customers. Additionally, we can look at the cost of alternative solutions or competitors to Freshsales and compare them to the perceived value that Freshsales provides.Compared to its competitors like Salesforce, and Hubspot, Freshsales Suite falls within the lower range of pricing, with its Growth plan being on par with some of the lowest-priced options in the market. But from the Indian market, ZohoCRM offers a better price alternative. However, Freshsales Suite's perceived value may make it seem like a higher-value product compared to its competitors.Therefore It seems that their international market pricing is competitive. This suggests that they have done their research and priced their product competitively in different regions.

Regarding the Indian market, it is known to be price-sensitive and highly competitive. Therefore, it is possible that Freshsales may face more pricing pressure in this market. It may be worthwhile for Freshsales to consider adjusting its pricing strategy in India to remain competitive and capture a larger share of the market. However, this would require a thorough analysis of the market dynamics and customer preferences in India.

Step 4: Pricing Page Design

Freshsales Suite is currently using the same pricing in the Indian market as they are using for the US market billing in USD.  Based on earlier, It’s highly advisable for Indian Market they can create a different pricing tier in INR.

Current Pricing page :

Suggested Indian Pricing Page :

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