Competitor’s Price Increase
How our monitoring works
For critical shifts like pricing, the real value lies not in brute-force collection, but in the nuanced interpretation of signals and the delivery of timely, actionable insights. We've developed a method that actively cuts through irrelevant detail – the very kind that forces constant context switching – delivering precisely the intelligence you need to navigate market changes.
What sets Zimt's domain-specific monitoring apart from generic approaches is its foundation in actively identifying critical signals within our trained data. This distinct philosophy ensures we provide you not just with observations, but with concrete, actionable next steps, allowing your team to maintain sharp focus where it genuinely empowers your decisions.
Alternative tools
Observing the competitive landscape reveals key signals, whether from social posts, newsletters, or webpages. For effective B2B monitoring, you have choices: generic tools like Visualping, Google Alerts, or manual tracking, or domain-specific providers like Zimt. The crucial step is moving from mere observation to understanding what these signals truly mean.
Direct Price Increase Example
A jump from €60 → €99 isn't just a 65% increase; it's a strategic move that fundamentally redefines their value proposition and, critically, your competitive landscape. Critically, the strategy and inherent impact differs greatly from an annual inflation-related increase.
In June 2025, Slack increased their Business+ pricing by +23.08%. The increase was part of a larger price packaging adjustment, where their AI offering was added to other tiers (i.e. Pro now includes AI add-on). Interestingly, their Pro tier now acts as a decoy for Pro with Slack AI add-on tier.
Scenario
The market has shifted. A competitor’s recent price adjustment – from, say, €60 to €99 – presents not just a challenge, but a profound strategic moment. Once these signals are understood, your response in this fluid environment will define your next chapter. Below, we outline three distinct paths, each designed to harness the psychological and market forces now in play. Each path is a set of immediate, actionable tasks, guiding your team to turn competitor action into your advantage. | ||
Option A
Target competitor’s (potentially) churning customers
Best for: The competitor has raised prices. Some of their customers will feel the pinch. Many will look for alternatives. This option is about making your company their immediate, compelling escape route. It's a proactive sprint to capture market share from those now looking to leave. Goal: Capitalize directly on the competitor's price hike by actively attracting their potentially dissatisfied customers. Strategic Rationale: This is a direct, agile approach. It leverages the competitor's vulnerability to bring new customers to your door, transforming their strategic move into your growth engine. | ||
Steps to execute
Mapping the Disaffected.
☐ Identify Target Customer Pool: Use tools like PhantomBuster, LinkedIn Sales Navigator, or analyze mutual connections. Look for public dissatisfaction: social media engagement, industry forum discussions (Reddit, X), LinkedIn comments signaling unease.
☐ Cross-reference Data: Review CRM win/loss data for past prospects who considered the specific competitor. Talk to existing customers about competitor mentions. Pinpoint those most likely to churn.
The Echo of Better Value.
☐ Craft & Deploy Targeted Messaging: Develop ad copy, email sequences, and social media content that subtly, but powerfully, highlights "better value alternatives." Focus on your core differentiators and the clear price advantage without aggressive attacks.
☐ Sales Readiness: Arm your sales team with concise battle cards and graceful talking points. They must confidently articulate your superior value proposition when the competitor's price comes up.
The Irresistible Offer.
☐ Engineer a "Switch Offer": Create a compelling, limited-time incentive. This could be "Match Competitor's Old Price + XX% Off for 6 Months," "Free premium features for 6 months," or a significant discount on the first year. Make the decision to switch feel like a clear win.
☐ Team Training: Ensure your team understands how to present this offer, articulate its ROI, and clearly explain the benefits of transitioning to your platform.
The Direct Comparison.
☐ Build a Dedicated Comparison Page: Create a highly visible landing page ([Competitor X] vs. [Your Company]). Clearly outline feature differences, pricing advantages, customer support quality, and your unique benefits. Show the value you provide that the competitor now offers at a significantly higher cost.
Example: Typeform vs Tally (see full Playbook)
☐ Legal Review: Ensure all claims are verifiable. Document all sources to maintain credibility.
Smooth Transition (Optional but High Impact).
☐ Offer Streamlined Migration Support: If applicable, provide dedicated resources, tools (e.g., data migration utilities), specialized onboarding sessions, or priority support to simplify the new customer's transition. Reduce friction at every step.
Launch & Learn.
☐ Execute & Monitor: Launch targeted campaigns across all relevant channels (paid ads, email, social, direct traffic to comparison page). Closely track lead volume, conversion rates, and, critically, the specific reasons new customers cite for switching.
Option B
Strategic Pricing & Value Optimization
Best for: A competitor's price hike doesn't just create an opening. It creates headroom. This option focuses on recalibrating your own position, whether by improving margins, re-aligning your value, or strategically adjusting your own prices. It's about optimizing your profitability in a newly defined market landscape. Goal: Improve your own margins or strategically reposition your product, leveraging the new market space created by the competitor. Strategic Rationale: The competitor's move has often expanded the acceptable price range in the market. This allows you to raise your own prices without losing competitiveness, potentially boosting profitability, or to reinforce your value proposition if you choose to hold steady. | ||
Steps to execute
Assessing the Impact.
☐ Initial Impact Assessment: Quantify the competitor's increase (e.g., 10% incremental or a significant 43.5%). Hypothesize their reasoning: Is it increased value, a shift in market segment, financial pressure, or an elasticity test? Are they trying to weed out lower-paying customers or rebalance their plans?
Your New Stance.
☐ Re-evaluate Your Pricing Strategy:
Current Positioning: Where do you stand now? Is the price gap nominal, or are you still significantly cheaper/more expensive?
Price Adjustment Decision: Decide whether to increase your own prices. If their hike is significant, it's an opportunity to raise yours without sacrificing competitiveness, especially if your value is comparable or superior.
Competitive Advantage: Alternatively, maintain current pricing. Highlight your cost-effectiveness as a clear differentiator.
Tier Optimization: Does this create room for a new tier, or can you adjust existing tiers to capture more value? Consider the impact of any new tier.
The Refined Message.
☐ Review Value Proposition & Messaging:
Highlight Strengths: If the competitor now appears expensive, emphasize your value for money, comprehensive features, excellent support, or unique benefits.
Address Gaps: Identify any features or services they offer that justify their higher price, which you might be missing. This reveals product development opportunities.
Comparison Material: Develop internal and external battlecards/comparison sheets that clearly show your advantages against their new pricing.
Value Enhancement (If Prices Remain Steady).
☐ Enhance Value Proposition: If opting for a smaller price increase or none, actively add new features, improve existing ones, or bundle complementary services. Update all marketing materials to highlight these enhancements.
Communicating the Shift.
☐ Craft Internal & External Communication:
Marketing (for price increases): Develop clear, value-driven messaging for existing customers, emphasizing continued investment and quality.
Sales: Train your sales team on the rationale behind any price adjustments and how to communicate them effectively to prospects and current customers.
Market Intelligence.
☐ Monitor Competitor's Market Reaction: Scan public commentary (social media, forums, review sites) for customer feedback on their price increase. Look for indirect signs of changes in their sales volume (fewer case studies, less aggressive marketing).
Execution & Oversight.
☐ Implement & Monitor: Update all pricing systems (website, CRM, billing, contracts). Closely monitor your own sales volumes, churn rates, and average revenue per user (ARPU) to assess the impact of your strategic changes.
Option C
Monitor & Defend Your Current Position
Best for: Sometimes, the smartest move is not to move at all – not yet. In the wake of a competitor's price increase, a cautious approach can be powerful. This option is about reinforcing your existing value proposition, doubling down on customer satisfaction, and meticulously observing the market before making a dramatic counter-move. It's a strategic pause, but not an inaction. Goal: Maintain your current pricing and market position, focusing on reinforcing your existing value while closely observing market dynamics. Strategic Rationale: This approach is prudent when you want to avoid hasty reactions, when you believe your current value proposition is strong enough, or when you need more time to fully assess the competitor's long-term strategy. | ||
Steps to execute
Enhanced Intelligence Gathering.
☐ Intensify Competitor Price & Strategy Monitoring: Set immediate alerts for any further price adjustments from the specific competitor or other key competitors. Monitor their marketing campaigns and public statements for clues about their strategy.
☐ Sales Feedback Loop: Instruct your sales team to meticulously report any customer inquiries or feedback specifically related to the specific competitor’s price changes. These are critical real-time signals.
Fortifying Your Foundation.
☐ Reinforce Your Existing Value Proposition: Marketing must double down on content. Highlight your established strengths, share customer success stories, and emphasize your unique differentiators. Focus on "why customers already choose us" without explicitly referencing the competitor's price.
☐ Proactive Customer Success: Engage proactively with your existing customer base. Ensure their satisfaction. Reinforce the value they are currently receiving from your product and service. Loyalty is your first line of defense.
Internal Foresight.
☐ Conduct Internal Impact Analysis: Finance and Sales teams should project the potential impact on your market share and profitability. Model scenarios where the specific competitor successfully maintains its higher price, assuming you keep yours stable. Understand the potential shifts.
Strategic Preparedness.
☐ Prepare Contingency Plans: The leadership team must define specific triggers. These could be a measurable shift in competitor market share, a significant increase in their sales despite the price hike, or direct, widespread customer feedback on pricing. These triggers will prompt an immediate pivot to Option 1 or Option 2.
Scheduled Reassessment.
☐ Schedule Follow-Up Review: Set a firm date – perhaps two weeks or one month out – for the leadership and relevant teams. Review all collected data, reassess the market, and decide whether a more active response is warranted. This is not a set-and-forget; it is a live strategy.
Proactive Competitive Intelligence
You might have noticed, our approach to Competitive Intelligence is a bit different to the incumbents. Zimt offers Proactive Competitive Intelligence, where we not only monitor your competitors, but provide a reaction for our users. Sign up to activate 35+ playbooks in Zimt.
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