.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.
Below is a detailed explanation based on Price to Scale:
Directly address segmentation:
Our book emphasizes the need to segment your customer base. In the case where you offer both self-serve and white-glove options, you need to best match each offering to the specific needs, behaviors, and willingness to pay of different cohorts. For instance, customers who prefer the ease and lower cost of a self-service model are different from those who value the hands-on, premium support of a white-glove service.Differentiated packaging and clear value propositions:
As discussed in Price to Scale, especially in our "good-better-best" packaging framework, it is important not to merely apply a blanket discount or identical tiers across offerings. Instead:
- Clearly differentiate features between the two options. The white-glove service might include add-on capabilities (such as personalized onboarding, customizable support, etc.) that justify a premium price.
- Rename or repackage tiers so that the comparison isn’t too direct, making the customer understand they are choosing a distinctly premium experience with white-glove support.
- Creative alternative pricing models:
The book suggests being proactive and creative by offering alternatives that subtly shift the value equation. For example, if you decide to lower prices for the self-serve model, consider bundling additional benefits for the white-glove experience—not simply discounting but perhaps offering an upgrade path or commitment incentives that add value. This might mean:
- Structuring add-on pricing where some services are based on a percentage of the base fee while others are fixed, particularly for the white-glove model.
- Ensuring that each package is sufficiently distinct, both in feature set and in price positioning, to match differing customer expectations.
- Practical takeaways:
- Start by segmenting your customers according to their needs and buying behavior.
- Clearly define the benefits and pricing structure for your self-serve versus your white-glove offering.
- Consider renaming packages or modifying the feature set so that each option is seen as entirely separate—a tactic recommended in our pricing strategy book, Price to Scale.
- Evaluate modular or add-on pricing models where appropriate, ensuring that the complexity remains manageable for your sales operations.
In summary, when addressing pricing for both self-serve and white-glove service options, aim to create clear, value-driven distinctions between the two. Segment your customer base, differentiate your packaging, and tailor your pricing strategy to meet the distinct needs and expectations of each group, all while ensuring your pricing structures remain transparent and difficult for customers to directly compare across the board. This approach has been extensively discussed in Price to Scale and provides a clear framework for balancing multiple service offerings.