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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 the guidelines in our saas pricing book, Price to Scale, the decision generally comes down to three core considerations:
Customer Value & Core Functionality
• Determine whether an integration or add-on is central to delivering your product’s primary value.
• Features that are used frequently and are essential for solving the main use cases for a particular customer segment usually belong in higher tiers.Usage Frequency & Market Segmentation
• Evaluate how often customers are likely to use the integration.
• If the functionality is a “must-have” for the segment you’re targeting (for example, enterprise customers), it makes sense to include it in a higher tier package instead of offering it as a separate add-on.Strategic Differentiation and Upselling Potential
• Consider if bundling the feature will create a competitive advantage or drive stickiness (ensuring predictable revenue).
• Alternatively, if an integration or add-on appeals to only a subset of customers or could serve as a lever for incremental revenue (upselling), offering it separately might be more beneficial.
Our book outlines two main pricing structure strategies—“Good-Better-Best” and modular pricing—that can guide this decision. For instance, in a “Good-Better-Best” model (as discussed in Chapter 2 of Price to Scale), higher tiers naturally bundle more of the core features and integrations that are critical for solving key use cases, whereas optional extras that cater to less common needs can be priced separately.
In summary, by assessing the role of each integration in terms of core value, usage frequency, and strategic importance, you can decide which functionalities to include in higher tiers versus those better suited for separate add-on pricing, thereby optimizing both adoption and revenue predictability.