.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.
Based on our pricing strategy book, Price to Scale, here are some key approaches to communicating the value of paid features to users who are content with the free version:
• Directly highlight how the premium features solve pain points. Explain that while the free version meets basic needs, the paid options offer added capabilities that address specific challenges or provide measurable business benefits. For example, if the premium package provides advanced automation or customer segmentation (as mentioned in the book), describe how those functions can drive new efficiencies or reduce costs.
• Use tiered feature packaging. Our book outlines a Good-Better-Best approach that clearly differentiates packages. By grouping features into distinct tiers, you can illustrate that while the free or basic version covers core functions, each upgrade unlocks additional value tailored to different customer segments. This helps free users see what they’re missing and how it aligns with their larger goals.
• Leverage segmentation and personalized offers. The book advises segmenting your user base to identify which customers could benefit most from upgrading. For users satisfied with the free version, tailoring communications that show how minor enhancements (or even alternatives such as slight adjustments in pricing or commitment levels) can lead to better outcomes builds credibility and relevance.
• Align product development with premium value. As discussed in our book (see Chapter 6 on product development and feature enhancements), the freemium model isn’t just about offering something for free—it’s a strategic way to develop a product roadmap where new, enticing features are designed specifically to encourage an upgrade. Communicate any future roadmap improvements that add value to the paid version to incentive free users.
In summary, the strategy is to clearly differentiate the free and paid offerings by demonstrating how premium features drive unique benefits. By focusing on targeted benefits, tiered packages, and personalized outreach, you can effectively convey the added value of paid features even to users who are currently satisfied with the free version.