Gassner: Multi-year lock-in discounts shrink SaaS market size and breed complacency
Peter Gassner · Capital-Efficient Growth (with Zoom CEO Eric Yuan & Veeva CEO Peter Gassner) · Acquired · May 19, 2022 · at 32:31
Veeva Systems CEO Peter Gassner explains why Veeva resisted traditional multi-year enterprise discounting in favor of annual contract renewals.
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“Cause I was always optimizing for the longterm value, which is the annual value per customer. So if I had to give the customer terms that would lock them in, I thought that's actually shrinking my market. Cause they'll pay less if they're locked in. That's one thing. Then the other one, I didn't want us sort of getting lazy. I wanted us to earn the business every year.”
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