Price is certainly a consideration when companies are evaluating marketing automation vendors. It is difficult for all but the largest companies to justify a monthly expenditure of $5,000 to $10,000, especially since there are no clear best practices and the return on investment is far from clear.
However, price is far from the only consideration. In this past quarter, we have won more than one deal against a high-end competitor when they cut their price to match ours. So what gives?
It all comes down to the suitability of the solution to the capabilities and expectations of the line-of-business buyer. Act-On has been built from the ground up to be intuitive for marketers, rather than catering to the requirements of database administrators and IT staff. We continue to maintain a laser-like focus on the needs of the line-of-business buyer even as we continue to expand our functional footprint.
So when one of our high-end competitors chooses to cut their price to match ours in order to win the business, it is a bit like SAP cutting their price to win a deal against Intuit. Cutting the price of the service does not change what it is, and what is required to be able to use it.