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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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Finding the perfect pricing strategy for your event management SaaS platform is critical to business growth. With the right approach, you can significantly increase revenue while still providing value to event planners. Yet many SaaS companies struggle with pricing optimization, often leaving money on the table or pricing themselves out of the market. This comprehensive guide explores how to effectively test your event software pricing to maximize profitability.
Why Pricing Testing Matters for Event Management SaaS
Event planning professionals rely on specialized software to streamline operations, from venue management to ticket sales. However, they're price-sensitive and need to justify any subscription pricing within their budgets. According to a study by Price Intelligently, a mere 1% improvement in pricing strategy can yield an 11% increase in profits—making pricing optimization one of the highest-leverage activities for SaaS businesses.
Common Pricing Models in the Event Management Industry
Before testing pricing, understand the common models in the event software space:
- Flat-rate subscription pricing: A single monthly or annual fee for all features
- Tiered pricing: Different feature sets at increasing price points
- Per-event pricing: Charging based on the number of events managed
- Per-attendee pricing: Scaling costs based on expected attendance
- Hybrid models: Combinations of the above approaches
According to Profitwell research, 98% of SaaS businesses that implement a value-based pricing strategy report positive results in customer retention and revenue.
Essential Elements to Test in Your Pricing Strategy
1. Price Point Testing
The most straightforward element to test is the actual price point. Consider implementing:
- A/B testing: Show different pricing to different segments of your website traffic
- Cohort analysis: Test different pricing with similar customer groups and track results
- Competitor benchmarking: Analyze how your pricing compares to alternatives
Research from OpenView Partners shows that SaaS companies that regularly test pricing updates increase revenue 30% faster than those with static pricing.
2. Feature Bundling and Packaging
How you package features across different plans significantly impacts conversion:
- Test which venue management features drive upgrades
- Determine if ticket sales functionality should be in all tiers or premium only
- Evaluate whether certain integrations justify price increases
3. Billing Frequency
The rhythm of your subscription pricing matters:
- Monthly vs. annual billing preferences
- Seasonal billing options for event planners with busy seasons
- Pre-paid credit systems for occasional users
According to Paddle's SaaS Pricing Survey, businesses offering annual plans with a discount typically see 30% higher customer lifetime value.
Step-by-Step Pricing Testing Methodology
Step 1: Establish Clear Metrics
Before testing, define what success looks like:
- Customer acquisition cost (CAC)
- Conversion rate
- Average revenue per user (ARPU)
- Customer lifetime value (CLV)
- Churn rate
Step 2: Segment Your Audience
Not all event planners are alike. Consider segmenting by:
- Event type (conferences, weddings, corporate meetings)
- Organization size
- Geographic location
- Frequency of events
Step 3: Implement Controlled Tests
When conducting price testing:
- Test one variable at a time
- Ensure statistically significant sample sizes
- Run tests for adequate duration (at least one sales cycle)
- Document all methodologies and results
According to Price Intelligently, companies that run quarterly pricing experiments see 15-30% higher growth rates than those that rarely adjust pricing.
Step 4: Analyze Results Beyond Revenue
While revenue is critical, analyze other factors:
- Customer feedback and satisfaction
- Feature adoption rates
- Support ticket volume
- Competitive positioning
Real-World Pricing Test Examples
Case Study: EventBrite's Ticket Fee Model
EventBrite tested multiple pricing approaches before settling on their current model that balances organizer fees with attendee fees. This hybrid approach increased their revenue by 25% while maintaining strong customer satisfaction.
Case Study: Cvent's Enterprise Pricing Transformation
Cvent moved from a rigid pricing structure to a more consultative, value-based approach for enterprise clients. This shift resulted in a 40% increase in enterprise contract values and improved retention rates.
Common Pitfalls to Avoid in Pricing Testing
- Testing too many variables: Isolate changes to understand cause and effect
- Short test windows: Allow sufficient time for meaningful data collection
- Ignoring customer feedback: Qualitative insights help explain quantitative results
- Neglecting competitor movements: The market context matters for interpretation
Tools for Effective Pricing Optimization
Several tools can streamline your pricing tests:
- ProfitWell: Subscription analytics and retention tools
- Price Intelligently: Value-based pricing research
- ChartMogul: Subscription business metrics
- Paddle: Pricing experimentation infrastructure
Implementing Your Findings
After gathering data, implement changes strategically:
- Grandfather existing customers when increasing prices
- Communicate value enhancements clearly
- Consider phased rollouts for major changes
- Continuously monitor impacts on customer behavior
Conclusion: Creating a Culture of Pricing Optimization
The most successful event software companies don't view pricing testing as a one-time project but as an ongoing process. By regularly evaluating how your subscription pricing aligns with the value you provide to event planners, you can sustainably grow revenue while maintaining customer satisfaction.
Creating a formalized pricing testing calendar—perhaps quarterly or semi-annually—ensures you're constantly refining your approach based on market conditions, customer needs, and your evolving product capabilities.
Remember that effective pricing isn't just about maximizing short-term revenue—it's about aligning your pricing strategy with the value you deliver to make your event management solution indispensable to your customers' success.