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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 competitive SaaS landscape, Marketing Resource Management (MRM) solutions face the dual challenge of communicating complex value propositions while capturing appropriate market value. A well-crafted pricing and packaging strategy isn't merely a revenue lever—it's a strategic framework that can accelerate growth, reduce sales friction, and increase customer lifetime value.
Why Pricing Strategy Matters for MRM Solutions
Marketing Resource Management platforms occupy a unique position in the marketing technology stack. They consolidate planning, budgeting, creative development, and performance analytics into unified solutions that bring order to marketing chaos. According to Gartner, organizations that implement MRM solutions effectively can realize productivity improvements of up to 20-30% in their marketing operations.
However, the challenge lies in crafting pricing that reflects this value. Research from OpenView Partners reveals that 98% of SaaS companies that implement strategic pricing initiatives see positive revenue impacts, with an average 11-15% revenue uplift. For MRM platforms dealing with complex buyer journeys and varied stakeholder needs, strategic pricing becomes even more critical.
Phase 1: Market and Competitive Intelligence
Conduct Comprehensive Competitive Analysis
Begin with a detailed analysis of direct competitors in the MRM ecosystem. Document their:
- Pricing models (seat-based, tiered, usage-based, value-based)
- Package tiers and feature distribution
- Price points and entry thresholds
- Upsell/cross-sell strategies
- Enterprise deal structures
"Successful SaaS pricing is less about your costs and more about understanding what different market segments truly value," notes Patrick Campbell, founder of ProfitWell. Analyze not just what competitors charge, but how they communicate their value and structure their offerings.
Map Customer Segments and Willingness-to-Pay
Identify distinct customer segments within your target market. For MRM platforms, these often include:
- Enterprise marketing organizations
- Mid-market marketing teams
- Marketing agencies
- Industry-specific variations (retail, financial services, etc.)
For each segment, research willingness-to-pay thresholds. According to Price Intelligently, a 1% improvement in price optimization can yield an 11% increase in profit—making this analysis particularly valuable.
Phase 2: Value Metric Identification
Define Your Value Metrics
Value metrics connect your pricing directly to the value customers receive. For MRM platforms, potential value metrics include:
- Number of users/seats
- Marketing projects managed
- Digital assets stored
- Workflows automated
- Campaigns planned and executed
- Marketing budget managed
The ideal value metric scales naturally with customer success. Research from Simon-Kucher & Partners indicates that companies with value-based pricing achieve 33% higher revenue growth than those with cost-plus or competitor-based approaches.
Quantify ROI for Different Customer Types
Document how your MRM solution delivers tangible value, such as:
- Time saved in campaign planning and execution
- Reduced agency or contractor costs
- Improved marketing budget utilization
- Faster campaign time-to-market
- Reduced compliance risks
- Improved marketing asset utilization
These ROI metrics provide essential framing for your pricing conversations.
Phase 3: Package Structure Design
Design Tiered Package Options
Based on your competitive analysis and value metrics, design 3-5 package tiers that align with different customer segments:
- Entry tier: For smaller teams or those new to MRM
- Growth tier: For mid-market organizations with established marketing processes
- Enterprise tier: For complex marketing organizations with advanced needs
- Industry-specific tiers: Consider vertical-specific packages for industries with unique requirements
According to a study by Price Intelligently, the ideal number of pricing tiers is 3-4, with clearly differentiated value at each level.
Feature Distribution Strategy
Strategically distribute features across tiers based on:
- Must-have vs. nice-to-have functionality
- Implementation complexity
- Value delivered
- Cost-to-serve
For example, basic project management and asset storage might appear in all tiers, while advanced workflow automation, AI-powered insights, and custom integrations might be reserved for higher tiers.
Phase 4: Pricing Model Selection
Evaluate Pricing Model Options
Consider which pricing model best aligns with your value metrics:
- Per-user pricing: Simple but may limit adoption
- Tiered flat-rate pricing: Predictable for customers but potentially leaves money on the table
- Usage-based components: Aligns with value but introduces variability
- Hybrid models: Combines stability with growth potential
According to OpenView's SaaS Pricing Survey, 45% of SaaS companies now use some form of usage-based pricing, up from 34% in previous years.
Set Price Points
Establish price points that:
- Reflect the value delivered at each tier
- Create clear upgrade paths
- Compare favorably to alternatives (including the status quo)
- Allow for expansion revenue
When setting entry price points, consider that Software Pricing Partners research indicates lowering barriers to entry while creating expansion opportunities can increase customer lifetime value by 20-40%.
Phase 5: Go-to-Market Planning
Develop Sales Enablement Materials
Equip your sales team with:
- Value calculators showing ROI for different customer types
- Competitor comparison guides
- Objection handling resources
- Case studies demonstrating value realization
- Implementation roadmaps showing time-to-value
According to Forrester, sales teams with strong enablement resources achieve 10-15% higher quota attainment.
Plan Grandfathering and Transition Strategy
If revamping existing pricing, develop a thoughtful migration strategy:
- Determine grandfathering policies for existing customers
- Design incentives for voluntary migration
- Train customer success teams on communicating changes
- Establish timeline for phased implementation
Phase 6: Continuous Optimization
Establish Monitoring Metrics
Track key metrics to evaluate your pricing strategy:
- Win/loss rates by package
- Average deal size
- Sales cycle length
- Expansion revenue
- Customer acquisition cost
- Net revenue retention
According to a McKinsey study, companies that regularly revisit pricing increase margins by 3-8% over those with static approaches.
Create a Pricing Council
Form a cross-functional team that meets quarterly to evaluate pricing performance and recommend adjustments. Include representatives from:
- Product
- Sales
- Marketing
- Customer Success
- Finance
Conclusion: Strategic Pricing as Competitive Advantage
For MRM platform providers, pricing isn't merely about capturing revenue—it's a strategic framework that shapes customer perception, drives adoption patterns, and ultimately determines market position. A well-executed pricing strategy project should yield:
- Improved conversion rates
- Higher average contract values
- Reduced sales cycles
- Better customer retention
- More predictable expansion revenue
By methodically working through these phases, MRM providers can develop pricing and packaging that reflects their true value while creating sustainable competitive advantage in an increasingly crowded marketplace.
As you implement your new pricing strategy, remember that pricing is never "done." The most successful SaaS companies treat pricing as an ongoing discipline, continuously testing and refining their approach as market conditions evolve and customer needs mature.