
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.
For SaaS executives leading Customer Relationship Management (CRM) platforms, pricing and packaging strategy can be the difference between sustainable growth and stagnation. Despite its critical importance, many organizations approach pricing as an afterthought rather than the strategic lever it truly is. In fact, a McKinsey study found that a 1% improvement in pricing can translate to an 11.1% increase in operating profit—outperforming improvements in variable costs, volume, or fixed costs. This article outlines a comprehensive approach to executing a pricing and packaging strategy project specifically tailored for CRM SaaS offerings, designed to maximize both revenue and customer value.
The CRM market continues to evolve rapidly, with Gartner predicting the global CRM market to exceed $80 billion by 2025. With increasing competition and market saturation, your pricing strategy has become a critical differentiator. As customer acquisition costs continue to rise, effective monetization of your existing user base through strategic pricing becomes even more essential.
Begin by thoroughly mapping your competitive landscape. Document the pricing models, package tiers, and feature distribution across your primary competitors and adjacent solutions.
Key activities:
According to OpenView Partners' SaaS Pricing Strategy survey, 98% of the most successful SaaS companies conduct regular competitive pricing analyses, with 48% performing them quarterly.
The cornerstone of effective pricing is understanding how customers perceive and derive value from your CRM solution.
Key activities:
"The most common pricing mistake SaaS companies make is pricing based on internal costs rather than customer-perceived value," notes pricing strategist Patrick Campbell of ProfitWell.
Clarify what you aim to achieve through this pricing project:
Your objectives should align with broader business goals and the current stage of your CRM business.
Based on your market assessment, determine which pricing model best aligns with how customers derive value:
According to research by OpenView Partners, CRM solutions are increasingly moving to hybrid models that combine per-user fees with usage components, resulting in a 32% higher growth rate compared to pure per-user models.
Package design is where the rubber meets the road in your pricing strategy. For CRM specifically, consider:
A study by Price Intelligently found that well-designed packages increase willingness-to-pay by up to 24% compared to poorly differentiated tiers.
Before implementation, validate your proposed strategy:
For example, Salesforce regularly conducts conjoint analysis to evaluate how different features and price points affect customer purchase decisions before major pricing changes.
Model the financial impact of your proposed changes:
This step is critical to gain executive buy-in and mitigate risk.
For existing customers, determine:
According to a study by ProfitWell, companies that implemented thoughtful migration strategies retained 93% of customers during pricing changes, compared to 70% for those without such strategies.
Prepare comprehensive communication plans for:
Ensure your systems can support the new pricing structure:
Consider a staged approach:
Track key metrics to measure success:
Pricing is never "done." Establish a regular review cycle:
According to Profitwell, SaaS companies that revisit their pricing strategy quarterly grow 30% faster than those that review only annually or less frequently.
A well-executed pricing and packaging strategy project for your CRM SaaS offering can dramatically improve your business's growth trajectory and profitability. By following a structured approach—from discovery to continuous optimization—you'll create a pricing strategy that better captures the value you deliver to customers while providing clear upgrade paths that grow with their needs.
Remember that pricing is not a one-time project but an ongoing strategic process. The most successful CRM providers view pricing as a core competency deserving of continuous attention and refinement. As the CRM landscape evolves and your product capabilities expand, your pricing strategy should evolve accordingly to maintain alignment with market expectations and customer value perception.
Join companies like Zoom, DocuSign, and Twilio using our systematic pricing approach to increase revenue by 12-40% year-over-year.