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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, one effective approach is to segment your customer base to recognize and adapt to varying usage patterns. For customers who use your product seasonally or intermittently, consider the following strategies:
• Segment the customer base: Identify which customers have consistent usage versus those using the product only seasonally or intermittently. This allows you to tailor pricing or discount options according to how much value they derive during their active periods.
• Offer alternatives rather than cut-and-dry discounts: As mentioned in our book (see page 245), instead of simply reducing prices, you can present alternatives. For example, you might offer a “better option for the same money” such as an upgrade or bundle additional features that encourage a longer commitment, even if their usage is limited to certain periods.
• Incorporate commitment elements: If a customer’s usage is intermittent, you might consider linking a discount to a commitment on a longer timeline or try bundling add-ons. This means that while they are not using your product continuously, they are still committing to you as a partner over the long term.
• Communicate pricing changes proactively: Stay upfront about potential price adjustments. By being transparent regarding how pricing may fluctuate based on usage patterns, you help manage customer expectations and maintain trust.
To summarize, handling seasonal or intermittent customers involves strategically segmenting your customer base and creatively offering tailored alternatives that balance a discount with a value-added proposition or longer-term commitment. This thoughtful approach helps retain customers while ensuring your pricing remains aligned with the value delivered.