← Every exhibit
Executive Diagnostic Framework and Audit Checklist
| Audit Dimension | Exemplary Practice (2 Points) | Acceptable Baseline (1 Point) | Critical Deficiency (0 Points) |
|---|---|---|---|
| 1. Public Tier Count | Strictly three core tiers (Good-Better-Best) plus modular add-ons | Four tiers with clear target segment definitions | Five or more tiers causing buyer confusion and decision paralysis |
| 2. Customer Distribution | Balanced self-selection: 20-35% Good, 45-60% Better, 15-25% Best | More than 75% of accounts clumped in a single tier | Over 90% of customers stuck in entry tier; higher tiers fail to sell |
| 3. Fence Integrity | Enterprise compliance and security strictly fenced; zero leakage | Occasional feature leakage mitigated by sales discounting rules | Core enterprise capabilities freely available in low-priced tiers |
| 4. Identity & SSO Policy | Basic SSO in mid-tier; SCIM and audit logging reserved for Enterprise | SSO in Enterprise tier, but discounted for security-conscious SMBs | Rigid SSO Wall forcing 5x price jumps solely for authentication |
| 5. Value Metric Coupling | Each tier incorporates a scalable usage metric driving intra-tier expansion | Tiers are purely flat-rate, requiring manual tier jumps to expand | Misaligned value metric that discourages customer product usage |
| 6. Reference Anchoring | Top tier actively anchors perceived value of mid-tier revenue workhorse | Visual hierarchy exists, but middle tier is not clearly highlighted | All tiers presented with equal weight; no cognitive anchor |
| 7. Feature Hostage Audit | Every tier delivers an uncompromised, complete core workflow | Minor convenience features gated, causing occasional support friction | Critical utility features (export, search) held hostage in top tier |
| 8. Grandfathering Governance | Clear contractual sunset clauses; max 12-month transition glide path | Grandfathered accounts reviewed annually on an ad-hoc basis | Uncapped, permanent grandfathering paralyzing billing and revenue |
| 9. Sales Discounting Guardrails | Strict discount authority matrix tied directly to package tiers | Manager approval required for discounts exceeding standard limits | Account executives freely discount premium tiers to hit quota |
| 10. Downgrade Velocity | Quarterly downgrade revenue represents less than 1.5% of total ARR | Downgrades monitored, but root cause analysis is inconsistent | High downgrade velocity indicating porous, unstable tier fences |
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Reference & Evidence
Source: Table from this essay. Sources and interpretation are given in the article.