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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 book Price to Scale, the key is to simplify the decision-making process for your customers by providing a clear, segmented structure that highlights distinct value propositions. Here are a few strategies from our book:
• Use a “Good-Better-Best” Framework
– Limit the choices to two or three well-defined packages.
– Each package should be tailored to a specific customer segment’s main use cases and willingness to pay.
– This structure helps customers quickly identify which option fits their needs without feeling overwhelmed.
• Emphasize Value Differentiation
– Clearly articulate the unique benefits of each bundle.
– Use a structured benefits analysis to map out the value of each package—for instance, as shown in our discussion of asking customers to allocate a hypothetical $100 among the packages. This exercise helps illustrate relative value and trade-offs in a tangible way.
• Avoid Unnecessary Complexity
– Resist the urge to overcomplicate the pricing with too many options.
– Each package should answer a specific need so customers can easily compare and choose based on what matters most to them.
In summary, our book Price to Scale advises that effective communication of bundled value combines a streamlined choice architecture with a clear demonstration of each package’s benefits. By focusing on a simple, segmented presentation, you can effectively guide customers to the best choice without overwhelming them.