Published: October 25, 2019
Pricing strategies play a major role in driving your SaaS business forward. However, it can be challenging to develop the ideal pricing strategy that will benefit both your business and consumers. If you’re feeling stuck for ideas to incorporate into your SaaS pricing strategy, you could benefit from looking at models other SaaS businesses have built. However, there are also several questions you can ask first to help you make wiser, more effective business and pricing decisions.
What Do My Consumers Want and Need?
Your first order of business when it comes to setting price tags is knowing your customers. This includes gathering customer data and understanding their priorities, desires, budgets and what they look for in a service. Once you build detailed personas of your consumers, you can determine the most beneficial B2B SaaS pricing for them.
How Can I Earn Consumers’ Trust?
Trust is critical any time you offer a service or product, as you want your consumers to feel they can rely on you to meet their needs. This is the key to all customer and business relationships!
You can leave room for flexibility in pricing as needed, but it’s also important to be as transparent as possible about your offerings and their value. When you build B2B SaaS pricing models, using a clear, trustworthy tone and making all relevant information easy to access will both engage customers and ensure they know what they are signing up for.
What Is the Service Worth to Consumers?
When you develop pricing models, consider the value of your services and what they bring to consumers. What is your SaaS service actually worth?
Usually, the best price for a product or service is one that corresponds to its value, meaning it helps you make a profit and proves a worthy investment for the customers. This will make the service a benefit to all parties involved.
Could My Business and Consumers Benefit From Discounts or Free Trials?
If and how you choose to offer discounts and free trials will likely depend on your business’s individual needs and priorities.
However, many SaaS pricing strategies include discounts for consumers who meet certain criteria or free trials of up to 30 days. Customers often love to save money, and they also love to have more control over their purchases. Check out the service offerings and strategies of some other SaaS businesses if you need inspiration.
Should I Add Service Costs to the Price Package?
Some SaaS services choose to include technical support, maintenance and upgrades into their regular subscription prices. Meanwhile, others may charge additional fees for these types of services.
To decide whether or not you should add support costs to the price package, you will need to consider your customers’ needs, expectations and priorities. This goes back to the reason it’s so crucial to have a full understanding of your buyers.
What Are the Benefits of Multiple Pricing Options?
Pricing your software services may include multiple models with different services and benefits. Your consumers may enjoy having a few package options, but keep in mind there is also value in simplicity.
Over-complicating prices could also risk turning off customers and causing other issues for your business. Meanwhile, keeping your pricing strategy at three to five options may be more manageable.
Contact Proactive Worldwide for Pricing Software Services
At Proactive Worldwide, our marketing research and strategic planning will help you develop the ideal SaaS pricing models for your business. Contact us today for additional details about our services!