2. User Research

November 1, 2024

Findings & Recommendations

Across these conversations, several consistent pain points with Vercel's pricing emerge:

  1. Complexity and Lack of Transparency: Users find Vercel’s pricing structure overly detailed and complicated, with numerous sub-categories (compute, edge data, etc.) that make it difficult to understand actual costs. This complexity can be overwhelming, especially for users who prefer simplified pricing over extensive granularity.

  2. Unexpected Charges and Difficulty in Forecasting Costs: Users mention that hidden or unclear fees arise unexpectedly. This issue makes it challenging to predict monthly expenses accurately, eroding trust in the pricing model and deterring users who want predictable, straightforward billing.

  3. Misalignment with Product Philosophy: Vercel’s pricing approach doesn’t fully align with its core product philosophy of abstraction and ease. While Vercel simplifies deployment for developers, its pricing feels the opposite—full of granular details rather than the simplicity expected from a low-code tool.

  4. Need for More Flexible, User-Specific Plans: Users express frustration with the gap between the “Hobby” and “Pro” plans, suggesting that a more customized, scalable approach would better accommodate different user profiles (like hobbyists, small businesses, and enterprises). An option for a “middle” tier or customized pricing based on actual usage could meet diverse needs better.

  5. Mismatch Between Billing and User Experience: Vercel’s detailed billing often doesn’t match how users interact with the platform. Suggestions like a "help me choose" tool or slider that adjusts based on expected traffic or usage could help users feel more confident in choosing an appropriate plan without getting bogged down by complexity.

  6. Perception of Nickel-and-Diming: Users view the high level of cost breakdowns as overwhelming and sometimes feel that it creates a nickel-and-diming experience. This perception can push users toward simpler alternatives that better align billing with perceived value and avoid unexpected add-ons.

Overall, the feedback suggests that simplifying Vercel’s pricing, increasing transparency, and aligning it better with Vercel’s user experience would improve user satisfaction and ease adoption.

User Research Interview with Oliver Zhou

Staff Software Engineer at Thumbtack and my former CoFounder at Hirevisor!

Oliver Zhou

Conversation Summary

  • Packaging makes sense, but it’s more confusing when I scroll down.
  • At Thumbtack’s stage, we don’t care as much about $20 per seat vs $50 per seat. It’s more about value.
  • I suggest a different UI around how the pricing is presented. Either pre-collapsed buckets, or a checkout wizard.
  • I would want something that helps me better understand base price vs volume.
  • When would it make sense to upgrade? What if I’m “enterprise” in one usage category, but still “pro” in another?

User Research Interview with Garrett Loh

Chief Product Officer at CRS

Garrett Loh

ChatGPT Summary

Here's a summary of the main points from the conversation:

  1. Understanding Vercel's Value Proposition: The discussion begins with a review of Vercel's benefits, focusing on how it abstracts deployment and simplifies collaboration. The participants discuss the platform’s "low-code" utility, appealing to users who don’t need full control over the code but want deployment flexibility.

  2. Pricing Complexity and Transparency: The Vercel pricing structure is seen as overly complex, with multiple tiers, features, and detailed pricing categories that could be simplified. Suggestions include providing a more straightforward model or a "help me choose" tool to let users predict costs based on expected usage.

  3. Competitor Comparisons and Feedback: The conversation compares Vercel's approach to competitors like AWS and Slack, noting the importance of transparent, flexible billing that aligns with user interests. AWS’s pricing complexity is discussed, and Slack is commended for user-friendly billing practices.

  4. Targeting Different User Needs: Vercel could better segment its users (e.g., hobbyists, pros, enterprise) by providing more user-focused plans and smoother transitions between tiers. Participants emphasize the need for a user-friendly system that doesn’t overwhelm with granular billing options but instead supports growth.

  5. Potential Strategy for Pricing Model Improvement: Ideas for enhancing the Vercel pricing strategy include simplifying the user journey, reducing granularity, and aligning the pricing structure with Vercel’s value proposition of ease and abstraction. The goal is for Vercel to feel approachable for small and medium businesses rather than solely catering to enterprise-level customers.

  6. Context of the Interview: The speaker preparing for an interview with Vercel’s head of strategy and operations mentions their approach to standing out by conducting real-world analysis and using insights from discussions like this one.

The conversation wraps up with appreciation for the insights shared and the focus on preparing recommendations for Vercel’s pricing model.

Raw Audio

User Research Interview with Oscar Lagercrantz

Chief Technology Officer at Aspect (acquired by Karat)

Oscar Lagercrantz

ChatGPT Summary

Here's a summary of the main points from the conversation:

  1. Introduction and Background: The interviewer congratulates the interviewee on joining Kara and discusses familiarity with tools like Vercel and Next.js. They express interest in understanding the interviewee's deployment strategies and whether they'd consider offloading some deployment complexity to external solutions.

  2. Deployment and Pricing Discussion: The conversation touches on the differences between free and paid plans, with the interviewee considering if the paid options save enough time and resources to justify the cost. The interviewee notes that Vercel’s pricing seems reasonable but complex, potentially posing challenges for companies trying to manage unexpected costs.

  3. Complex Pricing Structures: The discussion highlights issues with complex pricing, especially for technical teams. The interviewee prefers transparent, simplified pricing even at a higher rate, as it’s easier to manage and predict, especially as companies scale. The idea of a pricing slider tool is suggested to help users estimate costs based on expected usage.

  4. Current Challenges: For startups without dedicated DevOps teams, simplifying deployment can be essential. They highlight the need for tools that offer low-code or minimal operational requirements, making solutions like Vercel appealing if they manage deployment complexities effectively.

  5. Support and Usability for Small Companies: The interviewee mentions that smaller companies often struggle with support for complex services and may abandon them due to difficulty accessing helpful support. They compare this to experiences with other platforms, where support is not always technically proficient.

  6. Project Context: The interviewer explains that they’re hosting this conversation on a Vercel-powered blog page to get hands-on experience and better contextualize their findings for the project.

The conversation wraps up with an expression of appreciation and an offer of support from the interviewer.

Raw Audio