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Frameworks, core principles and top case studies for SaaS pricing, learnt and refined over 28+ years of SaaS-monetization experience.
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In the SaaS world, how you price your customer success and support services can significantly impact both your revenue stability and customer satisfaction. While your core product may have a clear pricing strategy, the supplementary customer success and support services often present unique challenges. Should these be bundled, tiered, or offered as premium add-ons? Let's explore the most effective approaches to structuring subscription pricing for these critical services.
The Evolution of Support Service Subscriptions
Traditional software companies typically offered support as an annual maintenance fee—usually 15-25% of the initial license cost. With the shift to SaaS, customer support and success services have evolved into recurring support fees integrated into subscription models.
According to Gainsight's 2023 Customer Success Industry Report, 72% of SaaS companies now include some level of customer success services in their base subscription, while 64% offer premium support tiers at additional cost.
Four Common Models for Customer Success Pricing
1. The All-Inclusive Model
Some SaaS companies, particularly those targeting SMBs, include all support and customer success services within their core subscription pricing.
Pros:
- Simplicity in messaging and sales
- No friction in customer support engagement
- Predictable support costs for customers
Cons:
- Potential for support overutilization
- Limited ability to monetize premium support offerings
- May need to inflate base pricing to cover support costs
Example: Slack includes comprehensive support in all its plans, with response time varying by tier rather than support availability itself.
2. The Tiered Support Model
This approach offers different levels of support based on subscription tier, with higher tiers providing more responsive or comprehensive service.
Pros:
- Aligns support quality with customer investment
- Creates natural upsell opportunities
- Delivers appropriate support levels based on customer needs
Cons:
- Can create dissatisfaction among lower-tier customers
- Requires clear differentiation between support tiers
- May lead to support team complexity in delivering different service levels
Example: HubSpot offers standard support for all customers but reserves premium support features like faster response times and dedicated representatives for Enterprise customers.
3. The Retainer Support Model
Some companies, particularly those serving enterprise clients, offer customer success services on a retainer basis separate from the core product subscription.
Pros:
- Creates additional revenue stream
- Allows for customization based on client needs
- Can provide dedicated resources to key accounts
Cons:
- Adds complexity to the sales process
- May create perception of "nickel and diming" customers
- Requires clear ROI demonstration
Example: Salesforce offers "Success Plans" as add-on subscriptions, with options ranging from standard to premier to signature levels, each with increasing levels of proactive support and guidance.
4. The Usage-Based Support Model
Some companies charge for support based on utilization, such as number of tickets, support hours used, or number of users requiring support.
Pros:
- Directly ties support costs to actual usage
- Can discourage excessive support utilization
- Fairness in cost allocation
Cons:
- Less predictable revenue
- Can discourage customers from seeking needed help
- More complex to administer and explain
Example: Many developer-focused platforms like AWS offer basic support for free but charge for premium support based on percentage of monthly spending, creating a usage-based model that scales with customer investment.
How to Determine the Right Pricing Structure for Your Business
Analyze Your Customer Base
According to a Forrester study, support needs vary dramatically across customer segments. Enterprise customers typically utilize 2-3x more support resources than SMB customers, yet often expect support to be included in their premium pricing.
Examine:
- Support utilization patterns across customer segments
- Willingness to pay for premium support in your market
- Competitive offerings in your specific vertical
Calculate Your Support Costs
Understanding your fully-loaded support costs is critical:
- Average cost per ticket or per support hour
- Variations in cost between different types of support (technical vs. onboarding)
- Fixed vs. variable costs in your support infrastructure
Consider the Customer Success Maturity Model
Customer success functions typically evolve through stages:
- Reactive support - Responding to issues as they arise
- Proactive monitoring - Identifying potential issues before escalation
- Prescriptive guidance - Offering best practices and optimization advice
- Business outcome partnership - Aligning with customer business objectives
Each stage can command different pricing based on the value delivered.
Implementation Best Practices
Transparency is Key
Whatever model you choose, clarity in your pricing structure builds trust. Create easily understood support tier comparisons that clearly articulate what's included and excluded at each level.
Test Before Scaling
When transitioning to a new support pricing model, consider:
- Running pilot programs with select customer segments
- A/B testing different pricing structures during the sales process
- Grandfathering existing customers during transitions
Measure Impact Beyond Revenue
TrackDyn's 2022 Customer Success Benchmark Report found that companies offering premium customer success services saw a 23% higher customer retention rate and 15% higher expansion revenue, even when accounting for the additional fees.
When evaluating your support pricing strategy, look at:
- Customer satisfaction metrics across different tiers
- Retention rates compared to support tier
- Product adoption and expansion revenue correlations
Conclusion
The right customer success pricing structure depends on your specific business model, customer base, and competitive landscape. Most successful SaaS companies are moving toward a hybrid approach, providing adequate baseline support for all customers while monetizing premium support and success services that deliver clear additional value.
By carefully analyzing your support costs, customer needs, and competitive positioning, you can develop a recurring support fee structure that not only creates a stable revenue stream but also aligns your success team's resources with your most valuable customers.
Remember that support isn't just a cost center—when properly structured and priced, it becomes both a significant revenue contributor and a powerful differentiator in an increasingly competitive SaaS landscape.