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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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Based on our saas pricing book, Price to Scale, there are documented examples where companies shifted their pricing metrics—and the results highlight both the challenges and potential benefits of such changes. Here’s a concise overview:
• Direct Answer: Yes, some companies have switched their pricing metric (for example, from per-user to a usage-based model) after launching. When done correctly, the change has often been positive for the business, though it requires careful repositioning and communication to ensure customer acceptance.
• Detailed Insights from the Book:
- One case study in Price to Scale discussed a company that moved to pricing based on Monthly Active Users (MAU). By tying the price more directly to the way customers managed and consumed the product, they were able to justify a significant increase in revenue capture—a reported 10x increase.
- The change wasn’t instantaneous; the transition involved a careful redesign of packages and even renaming of plans (for example, moving from “Pro” and “Elite” to “Premium” and “Advanced”) to soften the shock and help customers understand that they were getting a different, value-tied offering.
- Customers’ reactions in such transformations depend largely on whether the new metric aligns with how they already see and measure value. If customers are accustomed to a particular way of thinking about cost (such as per-seat pricing), switching to a usage-based metric may initially face resistance. However, when the change aligns well with their actual usage patterns and value reception—as in the case of the MAU-based pricing example—the overall reaction tends to be positive.
• Practical Application:
- Before making a switch, it’s crucial to assess what pricing metric your customers are familiar with.
- Use clear, data-driven communication to articulate how the new pricing model better matches their value from the product.
- Consider a phased approach and update sales tools (e.g., pricing calculators) to facilitate a smooth transition in both internal processes and customer conversations.
• Takeaway:
Switching your pricing metric can be a powerful way to capture more value, but it must be managed carefully. As emphasized in Price to Scale, the key is aligning the pricing metric with how your customers perceive value and ensuring that the shift is supported by thoughtful marketing, internal sales readiness, and operational adjustments.
For further details, consider reviewing the case studies highlighted in our book, which provide a deeper look at the process and outcomes of such pricing transitions.