The Secrets to SaaS Pricing
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Transcript of The Secrets to SaaS Pricing
The 3 Models of SaaS Pricing1
How to Pick the Best Price2
8 Pricing Hacks3
How to Test New Pricing4
We’ll cover...
Pricing in the $10 - $100/month range
This mean you need to focus on scale and acquiring customers
cheaply.
Pricing is $1,000s or $10,000s/month
Very little is automated, your team will be working very closely with
each customer.
Pricing is $100’s/month
You’ll need to scale your leads but you’ll have a full sales team to
close them.
2. What does the customer want to pay?
People have no idea until you ask them for their credit card.
How much extra revenue do they earn?1
How many hours do they save?2
What other costs do they avoid?3
Ask your customers:
There’s no such thing as a perfect price.
If you need more guidance, pick a price that’s 10% of the value
delivered.
Rule 3: Avoid Discounts Unless Launching
Discounts create destructive customer habits. Do not use them
regularly.
Rule 5: Use pricing plans to segment customers.
Different customer types get different value from your product.
Capture that value.
Rule 8: Grandfather Old Customers In
As long as you don’t raise prices for old customers, you won’t get
any complaints.
Step 1: Track subscription plans for all customers
Subscription plans1
Each monthly charge2
Any cancelations3
Access to total revenue, average revenue per user, and churn
4
KISSmetrics helps you find the right price
Connects all data to individual people1
A/B tests for your entire funnel2
See which plans are most profitable3
Q&A Time!Lars Lofgren
[email protected]@larslofgren