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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 today's digital-first business landscape, virtual events and conferencing solutions have evolved from pandemic necessities to strategic communication channels. However, many SaaS providers in this space struggle with pricing and packaging strategies that effectively communicate their value and maximize revenue. A well-executed pricing strategy project can be the difference between plateauing growth and sustainable success.
Why Pricing Strategy Matters More Than Ever for Virtual Event Platforms
According to OpenView Partners' 2022 SaaS Benchmarks report, companies that conduct regular pricing reviews see 10-15% higher annual revenue growth compared to those that don't. For conferencing and virtual events platforms, the stakes are particularly high as the market matures beyond its pandemic-driven growth phase.
The virtual events software market is projected to reach $22.75 billion by 2028, growing at a CAGR of 23.7% according to Grand View Research. With increasing competition and more discerning buyers, your pricing approach needs to be strategic rather than reactive.
Phase 1: Market Assessment and Value Discovery
Competitive Analysis
Begin by thoroughly analyzing 8-10 direct and indirect competitors:
- Document their pricing models (per attendee, per event, subscription-based, etc.)
- Capture feature sets at different tiers
- Note positioning and messaging around value
- Identify any industry-specific packages or enterprise offerings
"Understanding the competitive landscape isn't about copying—it's about identifying gaps and opportunities," notes Patrick Campbell, founder of ProfitWell (now Paddle).
Customer Value Research
Conduct structured research to understand how customers perceive value:
Quantitative survey: Deploy a value metric survey to at least 100 current customers, asking them to rank features by importance and willingness to pay.
Qualitative interviews: Conduct 15-20 in-depth interviews with a mix of customers:
- Enterprise vs. SMB users
- High-growth vs. established companies
- Different use cases (conferences, webinars, hybrid events)
- Usage analysis: Review platform analytics to identify:
- Most-used features
- Features correlated with retention
- Natural usage breakpoints for tiering
Phase 2: Strategy Development
Value Metric Selection
Choose the right value metric—the factor your pricing scales with. For virtual events platforms, options include:
- Attendees: Straightforward but can discourage growth
- Events/sessions: Clear alignment with usage volume
- Host accounts: Simpler to manage but limits revenue expansion
- Engagement features: Ties pricing to successful outcomes
Research by Price Intelligently suggests that companies with a value metric aligned to customer success see 30% higher growth rates.
Tiering Structure
Develop 3-4 tiers that create natural graduation paths:
Basic: Simple webinars and meetings (1-100 attendees)Professional: Interactive conferences (up to 500 attendees, advanced engagement tools)Business: Large-scale virtual events (1000+ attendees, custom branding)Enterprise: Custom solutions for organizations with ongoing event needsEach tier should solve a specific customer problem and create a clear "good-better-best" progression.
Feature Differentiation
Strategically allocate features across tiers using the following framework:
- Foundation features in all tiers (video streaming, basic chat)
- Differentiator features that drive upgrades (analytics, breakout rooms)
- Enterprise features for high-value accounts (SSO, advanced integrations)
- Add-ons that can be purchased separately (white labeling, premium support)
According to research from Simon-Kucher & Partners, effective feature differentiation can increase willingness to pay by up to 40%.
Phase 3: Validation and Testing
Economic Modeling
Build a comprehensive model that projects:
- Revenue impact under different scenarios
- Customer migration patterns between tiers
- Expansion revenue opportunities
- Potential cannibalization risks
Test your assumptions with sensitivity analysis around adoption rates and price points.
Customer Validation
Test your new pricing structure with:
- Feedback sessions with select customers
- A/B testing on your pricing page (if traffic volumes permit)
- Sales team role-playing to identify objection patterns
Adjust packaging based on feedback, focusing particularly on the barriers to upgrading.
Phase 4: Implementation Planning
Grandfathering Strategy
Develop a clear approach to existing customers:
- Will they be grandfathered permanently or for a limited period?
- Will they receive enhanced value to offset any price increases?
- How will you communicate changes to minimize churn?
HubSpot's approach of providing a 12-month transition period with dedicated success managers for affected customers resulted in minimal churn during their major pricing update.
Internal Enablement
Prepare your organization with:
- Sales training and new objection handling guidelines
- Updated ROI calculators and value demonstration tools
- Revised commission structures that incentivize the right behavior
- Clear internal documentation on packaging rationale
Communication Planning
Create a multi-channel rollout strategy:
- Direct customer communication via email and in-app notifications
- Sales team talking points and FAQs
- Website updates including comparison charts
- Content that emphasizes new value propositions
Phase 5: Launch and Optimization
Phased Rollout
Consider a staged approach:
- New customers only
- Expansion deals with existing customers
- Full implementation for renewals
Metrics Tracking
Monitor key performance indicators:
- Win rates by tier
- Average selling price
- Conversion rates at different stages
- Feature adoption within tiers
- Customer acquisition cost by package
Continuous Feedback Loop
Establish a quarterly pricing review process to:
- Assess competitive responses
- Incorporate sales feedback
- Review usage patterns against tier boundaries
- Adjust packaging based on customer needs evolution
Key Considerations for Virtual Events SaaS
Hybrid-Ready Packaging
As in-person events return, ensure your packaging accommodates hybrid scenarios:
- In-person attendee engagement tools
- Integration with physical venue technologies
- Different pricing models for hybrid vs. fully virtual
Scalability vs. Predictability
Balance customer desire for usage-based flexibility with your need for predictable revenue:
- Consider usage-based components within subscription tiers
- Implement "rollover" capacity to smooth usage spikes
- Offer annual commitments with expanded usage limits
Value-Based Add-Ons
Create premium add-ons for high-value capabilities:
- AI-powered networking features
- Advanced analytics and event ROI measurement
- Premium customer success packages
- Integration services
Conclusion: The Ongoing Journey of Pricing Excellence
Pricing is never truly "done" in the dynamic virtual events space. The most successful companies treat pricing as a product in itself—continuously evolving and improving. By following this structured approach to your pricing and packaging strategy project, you'll create a foundation that can scale with your business and adapt to changing market conditions.
Remember that effective pricing isn't just about capturing more value—it's about clearly communicating the value you provide and helping customers choose the right solution for their needs. When done well, your pricing strategy becomes a powerful competitive advantage and growth accelerator for your conferencing and virtual events platform.