Our recently published white paper: 7 Smart Ideas to Grow your SaaS Business contains leading edge information on how to grow your SaaS business. Here we look at one of the ideas:
This is a sensitive subject as price is critical to growth, but it’s not a
straightforward science. Charge too little and you’re giving away value with every customer (and people will start to question the quality of your service); raise costs too much, and you’re pricing yourself out of the market and driving customers towards cheaper competitors.
The best way to optimise your pricing is to attach a value metric to your customer base. If you deal with companies of a similar size with similar pain points, one metric may be sufficient. If your client base is broader, you may require different calculations based on each customer segment.
• If your product is email software, a small business may be interested in signing a deal based
on the size of their database because it means they don’t have to commit to sending a
certain number of email campaigns per month
• However, a larger company with a bigger database and more defined strategy, may be more
comfortable with a metric based on unique email sends per month
You may also wish to create package deals which encourage customers to choose multiple services. Consider discounting these bundles initially to make them more appealing – but keep the shelf life of any promotion short as perpetual discounts lose their impact.
Once you’ve confirmed your pricing strategy, make sure the options available are clearly displayed on your website. There are other features you can implement on the page to increase sign ups, such as adding an FAQ or live chat section, latest offers, and clearly but succinctly describing each price package. As with any key page on your website, you should constantly monitor visitor behaviour and split test it.
When it comes to marketing, SaaS has its own set of rules!
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