.png)
Estd 4.22.2023
In today's competitive SaaS landscape, product packaging and pricing strategy often determine success as much as the product itself. For many growing SaaS companies, a common inflection point arrives when considering whether to create a dedicated Enterprise SKU. This strategic move can unlock significant revenue potential but comes with notable challenges in positioning, pricing, and execution. This article explores the critical considerations for when and how to introduce an enterprise-only offering that maximizes value for both your company and your largest customers.
Why Consider an Enterprise-Only SKU?
Enterprise customers have fundamentally different needs, expectations, and buying behaviors compared to SMB or mid-market segments. Research from Gartner indicates that enterprise software purchases involve an average of 14 stakeholders, compared to just 3-5 in mid-market deals. This complexity demands a different approach.
According to OpenView Partners' 2023 SaaS Benchmarks report, companies with dedicated enterprise offerings see 60% higher net dollar retention and 37% higher average contract values than those with one-size-fits-all approaches. The potential upside is clear, but timing and execution are everything.
When Is the Right Time to Introduce Enterprise Pricing?
Market Pull Signals
Before creating an enterprise SKU, look for these clear indicators:
Large customers asking for capabilities beyond your current tiers: When enterprise prospects consistently request features or services that don't fit your current packages, it signals unmet needs.
Pricing limitations with high-value customers: If your largest customers would be willing to pay significantly more for additional value, but your current pricing model doesn't accommodate this, you're leaving money on the table.
Competitive differentiation opportunity: According to 2023 research from ProfitWell, SaaS companies with clearly defined enterprise tiers outperform competitors in enterprise win rates by 26%.
Resource-intensive customer segments emerging: When servicing certain customers requires significantly more implementation, support, or success resources, it may indicate the need for specialized packaging.
Internal Readiness Signals
You also need organizational readiness:
Product maturity: Your core offering should be stable, with room to build enterprise-specific capabilities.
Support infrastructure: Enterprise customers expect white-glove service - do you have the team and processes to deliver?
Sales expertise: Enterprise sales cycles (typically 6-9 months according to SiriusDecisions) require specialized skills and experience.
Reference customers: Having several large customers already successfully using your product provides crucial social proof.
How to Structure Your Enterprise SKU
Value-Based Differentiation
The most successful enterprise SKUs focus on unique value rather than simply bundling existing features. ProfitWell research shows that enterprise offerings built around perceived business value rather than feature quantity achieve 40% higher average selling prices.
Your enterprise SKU should include:
Enterprise-grade security and compliance: SOC 2, GDPR compliance, SSO, and custom security requirements are table stakes.
Advanced administration, governance, and controls: Including role-based access, approval workflows, and audit capabilities.
Customization and integration capabilities: API access, custom workflows, and flexible data models.
Dedicated success resources: Named account managers, implementation specialists, and priority support.
Strategic partnership benefits: Executive business reviews, roadmap influence, and custom SLAs.
Pricing Approaches
There are several approaches to enterprise pricing:
"Contact sales" pricing: This creates a negotiation opportunity but can also increase sales friction.
Published starting price: For example, "Enterprise plans from $50,000/year." This sets expectations while maintaining flexibility.
Value-based custom pricing: Pricing tied to customer-specific success metrics, which according to research by Paddle increases conversion rates by 42% for enterprise deals.
According to data from SaaS Capital, the most successful enterprise SKUs are priced 3-5x higher than the next lower tier, representing a significant value step-up rather than an incremental increase.
Implementation Strategy
Once you've decided to move forward, follow this implementation roadmap:
1. Start With Customer Development
Before building, have in-depth conversations with your largest current customers and promising enterprise prospects. Focus on:
- Their most pressing challenges
- Where your current offering falls short
- What capabilities would unlock significant additional value
- Their willingness to pay for these capabilities
2. Build a Minimally Viable Enterprise Offering
According to the Product-Led Growth Collective, successful enterprise SKUs start with a focused set of high-value enterprise features rather than an exhaustive list. Prioritize the 2-3 capabilities that will drive the most immediate value for enterprise customers.
3. Pilot With Friendly Customers
Before a full launch, implement your enterprise SKU with 3-5 existing customers who fit the enterprise profile. According to Winning by Design research, companies that run paid pilots before full enterprise launches see 32% faster time-to-value and higher customer satisfaction.
4. Develop Sales Enablement and Positioning
Enterprise sales require:
- Clear competitive differentiation
- ROI models and business case templates
- Detailed security documentation
- Case studies and social proof
- Executive selling materials
5. Scale Gradually
Build your enterprise motion methodically:
- Start with existing customers ready to upgrade
- Target industries where you've had early enterprise success
- Refine messaging and capabilities based on market feedback
- Gradually build specialized enterprise sales, success, and support teams
Common Enterprise SKU Pitfalls to Avoid
According to a 2022 study by Forrester, 67% of SaaS companies report challenges with their enterprise pricing strategies. The most common pitfalls include:
Feature-loading without value alignment: Adding features enterprises don't need or value.
Under-resourced support and success: Enterprise customers demand high-touch relationships.
Pricing too low: Many companies underestimate what enterprises will pay for value.
Poor internal alignment: Product, sales, marketing, and customer success must be coordinated.
Premature enterprise focus: Moving upmarket before your product is ready damages reputation.
Measuring Enterprise SKU Success
Beyond revenue, track these key metrics:
- Time-to-close for enterprise deals
- Implementation time and success rate
- Net dollar retention for enterprise customers
- Expansion revenue from enterprise accounts
- Customer satisfaction and NPS differences across segments
- Enterprise feature adoption and usage
Conclusion: Strategic Growth Through Segmentation
Introducing an enterprise SKU represents a pivotal strategic decision for growing SaaS companies. When executed correctly, it creates a win-win: enterprises receive tailored solutions that solve their unique challenges, while vendors capture appropriate value for delivering enhanced capabilities and service levels.
The most successful companies approach this transition methodically, ensuring product-market fit, organizational readiness, and clear value differentiation before fully committing to an enterprise go-to-market strategy. By listening carefully to customer needs and investing in the right capabilities, your enterprise SKU can become a powerful growth engine for your SaaS business.