.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.
In today's rapidly evolving healthcare technology landscape, having the right pricing and packaging strategy can be the difference between a thriving patient engagement SaaS platform and one that struggles to gain market traction. With healthcare providers increasingly focused on value-based care and improved patient outcomes, your pricing approach needs to reflect both the tangible and intangible value your solution delivers.
Why Pricing and Packaging Strategy Matters for Patient Engagement Solutions
According to a recent McKinsey study, B2B SaaS companies that optimize their pricing strategies can increase revenue by 3-8% and improve retention rates by up to 15%. For patient engagement technology specifically, the stakes are even higher as you're navigating the complex healthcare ecosystem with multiple stakeholders—providers, payers, patients, and administrators—each with distinct values and purchase considerations.
Your pricing strategy isn't just about setting price points; it's about communicating your value proposition, segmenting your market appropriately, and creating the right incentives for adoption and expansion.
Pre-Project Planning: Setting the Foundation
Assemble the Right Team
Before diving into the project, ensure you have cross-functional representation:
- Product Management: To articulate feature value and roadmap implications
- Sales: To provide voice-of-customer and competitive intelligence
- Customer Success: To highlight retention factors and expansion opportunities
- Finance: To ensure profitability and revenue recognition considerations
- Marketing: To align messaging with value propositions
- Legal: To navigate healthcare compliance considerations
Define Clear Objectives
Establish what success looks like. Are you trying to:
- Increase average contract value?
- Improve retention and reduce churn?
- Accelerate new customer acquisition?
- Expand into new market segments?
- Transition from perpetual licensing to subscription model?
- Optimize for profitability or market share?
Document these objectives and ensure executive alignment before proceeding.
Phase 1: Market and Customer Research
Current Customer Analysis
Begin by analyzing your existing customer base:
Usage patterns: What features do different segments use most? What correlates with renewal?
Value realization: Quantify the ROI your customers achieve. According to KLAS Research, healthcare organizations implementing comprehensive patient engagement solutions typically see a 25-35% reduction in no-shows and a 10-20% improvement in collection rates.
Willingness to pay: Conduct customer interviews to understand price sensitivity across different segments. A recent Gartner survey found that 72% of healthcare IT decision-makers prioritize demonstrated ROI over absolute price points.
Competitive Analysis
Map the competitive landscape:
- How do competitors package their offerings (all-in-one vs. modular)?
- What pricing models do they use (per provider, per patient, per message, etc.)?
- Are there hidden costs that customers face with competitor solutions?
- How do they tier their features across different price points?
Market Segmentation
Identify distinct market segments with different needs and willingness to pay:
- Large health systems vs. independent practices
- Specialty-specific practices vs. primary care
- Value-based care organizations vs. fee-for-service
- Patient population demographics and engagement preferences
Phase 2: Value Proposition Refinement
Before setting prices, clearly articulate your value proposition for each segment:
Quantifiable Value
Document how your solution delivers:
- Reduced no-show rates
- Improved staff efficiency
- Higher patient satisfaction scores
- Better clinical outcomes
- Increased collection rates
- Enhanced regulatory compliance
Intangible Value
Don't overlook intangibles that matter to healthcare providers:
- Enhanced patient experience
- Brand differentiation
- Staff satisfaction
- Future-proofing for value-based care
- Integration with existing workflows
Phase 3: Pricing Model Selection
Based on your research, determine the optimal pricing model:
Common Models for Patient Engagement Solutions
Per provider/user: Simple but may limit expansion within larger organizations
Per patient/panel size: Aligns with value for population health management
Per encounter/interaction: Usage-based, but may create adoption friction
Tiered subscription based on features: Enables upsell but can create complex buying decisions
Outcomes-based pricing: Innovative approach that aligns with value-based care principles
Hybrid models: Combining aspects of the above to optimize value capture
According to a 2023 Healthcare Information and Management Systems Society (HIMSS) survey, 57% of healthcare IT solutions are now using some form of value-based or outcomes-influenced pricing model, up from just 28% in 2019.
Phase 4: Package Design
Create packages that match market segments and encourage upgrades:
Tiering Strategy
Design 3-4 tiers that align with your segmentation:
- Basic tier: Essential patient communication features
- Professional tier: Adds workflow automation and basic analytics
- Enterprise tier: Full suite with advanced analytics and custom integrations
- Optional add-ons: Specialized modules for specific use cases
Feature Allocation
For each tier, determine:
- Must-have features for the segment
- Differentiators that justify the price jump
- Natural expansion paths
- Implementation and support levels
A study by Zuora found that SaaS companies with three or more pricing tiers generate 44% higher average revenue per account compared to those with one or two tiers.
Phase 5: Pricing Determination
Now determine actual price points:
Pricing Methods
Combine multiple approaches:
Value-based pricing: If your solution reduces no-shows by 30%, what is that worth to different segments?
Competition-based pricing: Position against alternatives, including manual processes
Cost-plus pricing: Ensure profitability while accounting for all costs including support and compliance
Willingness-to-pay analysis: Use Van Westendorp Price Sensitivity Meter or Gabor-Granger techniques to establish pricing thresholds
Testing Your Pricing
Before finalizing:
- Run financial models simulating different adoption scenarios
- Test with a panel of existing customers
- Consider pilot programs with new segments
- Run sensitivity analysis on key variables
Phase 6: Implementation Planning
Prepare for a successful rollout:
Sales Enablement
- Develop ROI calculators specific to each segment
- Create battlecards addressing competitor pricing
- Role-specific value propositions (clinical vs. administrative)
- Negotiation guidelines with acceptable discounting ranges
Marketing Materials
- Value-focused messaging for each segment
- Case studies demonstrating ROI
- Transparent pricing pages that highlight value, not just features
Customer Success Planning
- Migration paths for existing customers
- Expansion playbooks for account managers
- Success metrics aligned with value propositions
Phase 7: Launch and Iteration
Treat your pricing strategy as a continuous process:
Measurement Framework
Establish KPIs to track pricing strategy success:
- Win/loss analysis by segment
- Discount levels required to close
- Expansion revenue within accounts
- Feature adoption correlating with renewals
Feedback Loops
Create formal mechanisms to gather insights:
- Regular customer advisory boards
- Sales team feedback sessions
- Competitive intelligence updates
- Market trend monitoring
Common Pitfalls to Avoid
- Underpricing based on development cost rather than delivered value
- Healthcare systems are willing to pay for demonstrable outcomes
- One-size-fits-all packaging
- Different segments have vastly different needs and priorities
- Overlooking compliance and security values
- These are non-negotiable in healthcare and should be priced accordingly
- Complexity overload
- Too many options can paralyze healthcare decision-makers
- Ignoring implementation and integration costs
- The total cost of ownership includes far more than subscription fees
Conclusion: Strategic Pricing as Competitive Advantage
A well-executed pricing and packaging strategy for patient engagement technology isn't just about revenue optimization—it's about articulating your unique value in a crowded marketplace. By aligning your pricing with customer segments, demonstrable value, and market positioning, you create a foundation for sustainable growth.
The healthcare technology landscape continues to evolve rapidly, and your pricing strategy should evolve with it. Plan for regular reviews as regulations change, new competitors emerge, and customer needs evolve.
Remember that in healthcare especially, pricing isn't just a financial decision—it's a statement about how you partner with organizations working to improve patient outcomes and operational efficiency in an increasingly challenging environment.