.png)
Frameworks, core principles and top case studies for SaaS pricing, learnt and refined over 28+ years of SaaS-monetization experience.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Introduction
In the competitive landscape of Business Process Management (BPM) SaaS, your pricing and packaging strategy can be the difference between sustainable growth and stagnation. According to a McKinsey study, effective pricing strategies can increase company revenues by 2-7% within 12 months. For BPM solutions specifically, where value perception varies widely across different customer segments, getting your pricing right is particularly crucial. This article outlines a methodical approach to conducting a pricing and packaging strategy project tailored specifically for BPM SaaS executives looking to optimize their go-to-market approach.
Why BPM SaaS Pricing Is Uniquely Challenging
Business Process Management solutions present specific pricing challenges compared to other SaaS categories. According to Gartner, BPM platforms often struggle with pricing because the perceived value comes from long-term efficiency gains rather than immediate ROI. Additionally, the multi-stakeholder nature of BPM implementations means your pricing must make sense to technical users, line-of-business owners, and C-suite executives simultaneously.
Phase 1: Market and Competitive Assessment
Understand Your Competitive Landscape
Begin with a thorough analysis of direct and indirect competitors. For BPM SaaS specifically, this means:
- Map at least 10-15 competitors across price points and feature sets
- Identify how competitors segment their offerings (by user types, process complexity, industry, etc.)
- Document their pricing models (per-user, per-process, consumption-based, outcome-based)
A 2023 Forrester Wave report on BPM platforms revealed that 68% of leading providers have shifted from pure per-user models to hybrid approaches that account for process complexity and automation potential.
Analyze Customer Willingness to Pay
Conduct research to understand price sensitivity across different customer segments:
- Interview at least 20 customers and prospects across different sizes and industries
- Use the Van Westendorp Price Sensitivity Meter to establish price thresholds
- Identify which features drive the highest willingness to pay
OpenView Partners' research shows that BPM solutions can often command premium pricing when they clearly demonstrate ROI in terms of labor savings or process acceleration.
Phase 2: Value Metric Selection
Identify Your Primary Value Metric
The cornerstone of effective BPM pricing is selecting a value metric that aligns with customer value. Common metrics include:
- Users (standard but not always optimal for BPM)
- Processes or workflows
- Transactions or workflow executions
- Time saved or efficiency gained
According to Paddle's SaaS Pricing Strategy Report, companies that align their pricing with a value metric that grows with customer success see 30% higher growth rates than those using arbitrary metrics.
Test Value Metric Alignment
For each potential value metric, evaluate:
- Does it scale with value delivered?
- Is it easy for customers to understand?
- Can it be measured reliably?
- Does it incentivize product adoption?
For BPM specifically, metrics tied to process automation outcomes often show stronger alignment with perceived value than simple user-based models.
Phase 3: Package Design and Tiering
Create Feature Differentiated Packages
Design 3-4 packages that cater to different segments:
- Essential: Core process management capabilities for small teams or departments
- Professional: Enhanced features for mid-market companies with complex processes
- Enterprise: Full capabilities including advanced analytics, AI-driven process optimization, and enterprise integrations
Research from ProfitWell indicates that proper feature differentiation between tiers can increase average revenue per user by up to 43%.
Implement Strategic Feature Placement
Use the following framework to decide which features belong in which tier:
- Core features: Include in all tiers
- Differentiator features: Use to encourage upgrades
- Enterprise features: Reserve for top tier only
For BPM solutions, features like process mining, AI-based recommendations, and advanced compliance tools are typically high-value differentiators that can drive upgrades.
Phase 4: Pricing Strategy Development
Build Your Pricing Model
Develop a pricing model that incorporates:
- Base price for each package
- Incremental costs for additional usage of your value metric
- Any add-on modules or capabilities
- Volume discounts or other incentives
According to a 2023 OpenView SaaS Benchmarks report, BPM solutions with transparent, value-based pricing saw 27% higher customer satisfaction scores than those with opaque or complex pricing structures.
Test Pricing Scenarios
Model different pricing scenarios to understand:
- Impact on revenue from existing customers
- New customer acquisition at different price points
- Competitive positioning
- Long-term revenue projection
Use cohort analysis to predict how pricing changes might affect customer retention and lifetime value.
Phase 5: Go-to-Market Strategy
Develop Transition Plan for Existing Customers
If changing your pricing structure, create a clear migration plan:
- Grandfathering policies for existing customers
- Incentives for early adoption of new models
- Communication timeline and messaging
According to Gainsight, BPM companies that effectively communicate pricing changes and clearly articulate added value see 65% less customer pushback than those who implement changes without proper context.
Train Your Sales Organization
Your sales team needs comprehensive training on:
- The value narrative behind your pricing
- Handling common objections
- When to offer discounts or custom pricing
- Competitive positioning
HubSpot research indicates that sales teams with strong knowledge of pricing rationale achieve 23% higher win rates than those focusing solely on features.
Phase 6: Implementation and Measurement
Roll Out Strategically
Consider a phased approach:
- Begin with new customers
- Test with a subset of existing customers who would benefit from the new structure
- Implement broadly once validated
Measure Impact and Iterate
Track key metrics to evaluate success:
- Win/loss rates
- Average contract value
- Conversion rates between tiers
- Customer feedback and satisfaction
According to SaaS Capital, companies that regularly review and adjust pricing see 30% higher growth rates than those with static approaches.
Conclusion
A successful pricing and packaging strategy project for your BPM SaaS requires methodical research, careful alignment with customer value perception, and strategic implementation. By focusing on value metrics that truly reflect the benefits your solution provides, you can create a pricing structure that not only drives revenue but also encourages deeper adoption and customer success.
Remember that pricing is never "set and forget." The most successful BPM providers review and refine their pricing at least annually, responding to market changes, competitive pressure, and evolving customer needs. When executed well, your pricing strategy becomes not just a revenue tool but a powerful expression of your product's value proposition in the market.