
Frameworks, core principles and top case studies for SaaS pricing, learnt and refined over 28+ years of SaaS-monetization experience.
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Join companies like Zoom, DocuSign, and Twilio using our systematic pricing approach to increase revenue by 12-40% year-over-year.
In the competitive SaaS landscape, a well-crafted pricing and packaging strategy can be the difference between struggling for market share and establishing a dominant position. For Account-Based Marketing (ABM) software providers, this is particularly critical as the market continues to evolve and mature. According to Forrester, companies with optimized pricing strategies generate 11% higher profits than their counterparts with less sophisticated approaches.
This article outlines a comprehensive approach for SaaS executives to execute a pricing and packaging project specifically for ABM software solutions.
The ABM software market is projected to reach $1.6 billion by 2027, growing at a CAGR of 12.9% according to MarketsandMarkets. With increasing competition and more discerning buyers, your pricing strategy must not only capture appropriate value but also clearly communicate your solution's unique advantages in the market.
Begin by mapping the competitive terrain:
Identify direct and adjacent competitors: Document not just obvious ABM platform competitors but also point solutions that address segments of your value proposition.
Create detailed pricing grids: Capture competitor pricing structures, tiers, and packaging approaches. According to OpenView Partners' 2023 SaaS Pricing Survey, 78% of high-performing SaaS companies regularly conduct competitive pricing analyses.
Evaluate positioning: Determine if competitors position as premium, value, or middle-market solutions and identify any pricing model innovations.
Your pricing should reflect the value customers actually perceive, not just what you believe you deliver:
Select the right value metric - the unit by which you charge customers. For ABM software, consider:
According to Price Intelligently, companies that align their pricing with a clear value metric grow 2x faster than those that don't.
Develop a tiered structure that creates natural upgrade paths:
Research by Simon-Kucher & Partners indicates that the optimal number of pricing tiers for B2B SaaS is typically three to four, allowing for sufficient segmentation without overwhelming buyers.
Strategically allocate features across tiers:
Each package should tell a coherent story about the buyer it serves:
Design your packaging to facilitate natural expansion:
According to Gainsight, SaaS companies that effectively package for expansion see 20-30% higher net revenue retention.
Before full-scale implementation, validate your approach:
For existing customers:
Prepare your organization:
Establish KPIs to evaluate success:
Pricing and packaging for ABM software isn't a one-time exercise but an ongoing strategic process. The most successful companies revisit pricing strategy at least annually, with more frequent adjustments to packaging as the product evolves.
Remember that effective pricing and packaging doesn't just maximize revenue—it serves as a powerful positioning tool that communicates your value proposition and helps customers select the optimal solution for their needs. As the ABM software market continues to evolve, those who align their pricing with genuine customer value will maintain a sustainable competitive advantage.
By following this structured approach, SaaS executives can develop pricing and packaging strategies that not only capture appropriate value for their ABM solutions but also create scalable growth engines that drive predictable revenue expansion.
Join companies like Zoom, DocuSign, and Twilio using our systematic pricing approach to increase revenue by 12-40% year-over-year.