The underrated role of pricing in driving SaaS revenue growth

Wordpress Hosting

€10/month

€1/month

€500+/month

Three Levers of SaaS Growth

Growth = Acquisition x Pricing x Retention

Importance of Customer Success

5 Ways to Go $0 to $100M

Source: http://christophjanz.blogspot.com/

Planio Pricing Schema in January

Planio Pricing Schema in January

Silver Gold Diamond Platinum Enterprise

Team Members 9 30 60 100 Unlimited

Distribution of # of Users

010

2030

40

Boxplot of users

Insights from the Analysis

› 75% of our customer base only needed Gold or lower

› 50% of our customer base only needed Silver

› Account with 10 team members was paying the same price as an account with 30 team members.

› Conclusion: Our pricing scale was not calibrated to our customers.

New Pricing Scheme

Silver Gold Diamond Platinum Enterprise

Team Members 5 10 20 45 100

The New Pricing Plans

Grandfathering

› Don’t force any pricing changes on existing customers

What happens when you don’t grandfather…

Tool vs Solution

› You can charge multiples for a solution compared to a tool, even if the underlying software is the same.

Pricing as Part of User Research

› Great pricing comes from deeply understanding your customers.

Pricing Questions to Use:

› “At what monthly price point does ACME start to become expensive, but you’d still consider purchasing it?”

› “At what monthly price point does ACME start to become a really good deal?”

› “At what monthly price point does ACME start to become so cheap that you’d question the quality of it?”

Charge more for software!

Resources to Check Out

› SaaStr.com

› PricingIntelligently.com

› http://christophjanz.blogspot.com

› http://thomascarney.org

Thanks!