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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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Introduction
In today's data-driven business environment, Enterprise Information Archiving (EIA) solutions have become essential for organizations seeking to manage their digital information effectively while maintaining compliance with increasingly complex regulations. As the EIA market continues to grow—projected to reach $12.33 billion by 2027 according to Fortune Business Insights—SaaS providers in this space face a critical challenge: how to structure their pricing and packaging to capture optimal value while addressing diverse customer needs.
A well-executed pricing and packaging strategy can be the difference between explosive growth and stagnation for EIA providers. Yet many companies approach this fundamental business decision with insufficient strategic planning. This article outlines a comprehensive approach to running a pricing and packaging strategy project specifically tailored for Enterprise Information Archiving SaaS solutions.
The Strategic Importance of Pricing and Packaging
Before diving into the project framework, it's important to understand why pricing and packaging deserves dedicated strategic attention for EIA solutions:
- Value Perception - How you package and price your EIA solution directly communicates its value to potential customers
- Market Positioning - Pricing strategy helps position your solution relative to competitors in the archiving space
- Revenue Optimization - Well-structured tiers can capture more value from different customer segments
- Customer Acquisition & Retention - The right pricing models reduce friction in the sales process and increase loyalty
- Scalability - An effective pricing structure grows with your customers' needs
A 6-Phase Framework for EIA Pricing Strategy Projects
Phase 1: Market Analysis and Value Assessment (2-3 weeks)
Begin with a comprehensive analysis of both the market landscape and your solution's unique value proposition.
Key Activities:
- Competitive Intelligence: Analyze pricing models of major EIA competitors such as Mimecast, Proofpoint, Global Relay, and Smarsh
- Market Segmentation: Identify different buyer personas and segments within the EIA market
- Value Metric Exploration: Determine what aspects of your EIA solution deliver the most value (storage volume, user seats, retention periods, compliance features, etc.)
- Customer Interviews: Conduct structured interviews with current customers to understand value perception
Deliverable: Market positioning report with competitive pricing analysis and identified value drivers
Phase 2: Internal Assessment (1-2 weeks)
Look inward to understand your cost structures, current packaging effectiveness, and organizational readiness.
Key Activities:
- Cost Analysis: Calculate your cost-to-serve for different customer types and usage patterns
- Current Performance Review: Analyze conversion rates, customer acquisition costs, and churn by current pricing tier
- Sales Process Mapping: Document how pricing discussions occur in your current sales process
- Cross-Functional Alignment: Conduct workshops with Product, Sales, Customer Success, and Finance teams
Deliverable: Internal assessment report with SWOT analysis of current pricing approach
Phase 3: Strategy Development (2-3 weeks)
Develop your pricing and packaging strategy based on findings from the first two phases.
Key Activities:
- Value Metric Selection: Choose the primary metric(s) that will drive your pricing (e.g., data volume, users, features)
- Tier Structure Design: Develop logical progression of packaging tiers for different market segments
- Pricing Model Selection: Decide between perpetual, subscription, consumption-based, or hybrid approaches
- Price Point Determination: Set specific price points for each package based on value delivered and competitive positioning
- Add-On Strategy: Identify features that could be offered as premium add-ons rather than included in base packages
Deliverable: Comprehensive pricing strategy document with package definitions and pricing models
Phase 4: Financial Modeling and Validation (2 weeks)
Test your proposed strategy against financial metrics and customer feedback before implementation.
Key Activities:
- Revenue Impact Modeling: Project how the new pricing will affect revenue in short and long term
- Migration Simulation: Model the impact on existing customers if they were to move to new pricing structures
- Customer Validation: Test pricing concepts with select customers or prospects
- Sensitivity Analysis: Determine elasticity of demand at different price points
Deliverable: Financial model and validation report with go/no-go recommendation
Phase 5: Implementation Planning (1-2 weeks)
Develop a detailed roadmap for rolling out your new pricing and packaging.
Key Activities:
- Grandfather Policy Design: Determine how existing customers will be handled
- Sales Enablement Planning: Create materials and training for the sales team
- Marketing Communication Strategy: Plan how to communicate changes externally
- Technical Implementation Requirements: Document any product changes needed to support new packaging
- Timeline Development: Create a phased rollout plan with key milestones
Deliverable: Implementation roadmap with assigned responsibilities and timeline
Phase 6: Launch and Optimization (Ongoing)
Execute the implementation plan and establish mechanisms for continuous refinement.
Key Activities:
- Sales Enablement: Train sales teams on the new packaging and pricing structure
- Marketing Execution: Update website, collateral, and communication materials
- Customer Communication: Proactively reach out to existing customers about any changes
- Feedback Collection: Establish systematic ways to gather customer and sales feedback
- Performance Monitoring: Track key metrics against pre-launch baselines
Deliverable: Regular performance reviews with recommendations for optimization
Key Considerations for EIA-Specific Pricing
Enterprise Information Archiving has unique characteristics that should inform your pricing strategy:
Compliance-Driven Value
According to Radicati Group, regulatory compliance is the primary driver for 67% of EIA purchases. Your pricing should reflect the compliance value your solution provides for different regulatory frameworks (GDPR, HIPAA, SEC Rule 17a-4, etc.). Consider packaging tiers that align with different compliance needs.
Data Volume Growth
Information archives naturally grow over time. Gartner notes that archived data volumes typically increase 45-60% annually for most enterprises. Your pricing model must account for this growth without creating future sticker shock. Consider:
- Declining per-GB rates as volume increases
- Reserved capacity pricing with reasonable overage charges
- Annual resets or automatic tier upgrades
Feature-Based Differentiation
The EIA market has evolved beyond simple storage to include advanced features. Structure your packages to highlight differentiating capabilities:
- Basic: Core archiving and retention
- Standard: Add search and e-discovery features
- Premium: Advanced analytics, AI-powered insights, and automated compliance workflows
- Enterprise: Custom retention policies and dedicated support
Stakeholder-Specific Value
EIA solutions deliver different value to various stakeholders. According to AIIM research, legal teams value e-discovery features, compliance officers focus on retention policies, and IT values storage optimization. Consider offering role-specific add-ons that target these different value perceptions.
Common Pitfalls to Avoid
Many EIA pricing projects stumble in predictable ways:
Ignoring Customer Lifetime Value: Focusing too much on initial deal size can undermine long-term revenue. According to Forrester, EIA customers typically remain with vendors for 5-7 years, making lifetime value the more important metric.
Complexity Overload: Creating too many options or complicated pricing structures creates decision paralysis. Keep your packaging clear and intuitive.
Overlooking Implementation Services: Many EIA implementations require significant professional services. Determine whether these should be included in packages or priced separately.
Neglecting Customer Success Costs: Higher-tier packages may require more customer support. Ensure these costs are factored into your pricing.
Reactive Competitor Matching: Simply matching competitor pricing ignores your solution's unique value proposition. Price according to your value, not just the market.
Conclusion
A strategic, well-executed pricing and packaging project can transform the growth trajectory of your Enterprise Information Archiving SaaS business. By following this six-phase framework and considering the unique aspects of the EIA market, you can develop a pricing strategy that communicates your value, appeals to your target customers, and optimizes your revenue.
Remember that pricing is not a one-time project but an ongoing strategic lever that requires regular reassessment. The most successful EIA providers review and refine their pricing strategies annually to remain aligned with evolving market conditions, customer needs, and their own product development.
By investing the time and resources to get your pricing and packaging right, you position your Enterprise Information Archiving solution for sustainable growth in an increasingly competitive and essential market.