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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 insights from Price to Scale, handling customers who relocate between countries with different pricing involves a proactive and segmented approach. Here are some key points from our book:
• Recognize that pricing in different countries is based on different cost structures
– As shown in our discussion on international mobile messages, each country might have its own SKU because the cost to do business varies. This difference naturally creates challenges when a customer relocates.
• Proactively communicate and adjust pricing when a customer moves
– Our book advises that you should clearly explain the pricing rationale upfront. When a customer relocates, offer them a tailored option—whether that’s an upgrade, a discount (with some strings attached), or a modification in their plan—to reflect the new market dynamics.
• Evaluate and manage customer segmentation
– Relocation cases require you to re-segment the customer. Consider whether they might benefit from shifting into a different pricing tier that is aligned with the local market. This might involve analyzing usage patterns, renegotiating terms, or even applying unused credits across borders as a flexible solution (similar to discussions in our international SKU example).
• Use iterative feedback
– As with any pricing strategy, handle these situations iteratively. Monitor the customer response and adjust if needed, just as our iterative re-pricing strategy ensures effectiveness while minimizing over-discounting.
In summary, dealing with customers relocating involves transparent communication about pricing differences, offering tailored options through segmentation, and using an iterative approach to fine-tune your pricing strategy. This ensures that both the customer's needs and the cost realities of different markets are appropriately addressed.