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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, pricing a hybrid product that integrates both workflow and data analytics requires you to recognize and balance the distinct value elements of each component. Here are some key steps and considerations drawn from Price to Scale:
Direct Value Identification – First, assess the unique benefits that each component delivers. Identify which parts of your workflow tool add recurring value through process automation and efficiency, and what aspects of your data analytics platform provide insights and decision-making enhancement. This helps in mapping out each component’s perceived value among your customer segments.
Bundling vs. Modular Approaches – As discussed in Price to Scale, you have a couple of strategic models:
- The Good-Better-Best or tiered packaging model, where you create bundled packages that cater to different segments. In this approach, you can design tiers that include a mix of workflow functionalities with varying levels of data analytics capabilities, ensuring that each tier solves the main use cases for its target market.
- A modular pricing strategy, where you price and sell each component as distinct modules. This allows customers to pick and choose based on their specific needs. For example, you might set a base subscription for core workflow features and add separate pricing for advanced analytics features, especially if these are used less frequently or if usage metrics (as suggested on page 145 of Price to Scale) indicate variable consumption.
Choosing the Right Metrics – For data analytics, consider whether a usage-based model (such as pricing per query, per report, or per data volume processed) better aligns value capture with the customer’s consumption. For the workflow component, a subscription model or capacity-based pricing might be more appropriate. The key is to base your metrics on how customers interact with each component, ensuring that the pricing mirrors the value each aspect generates.
Internal Alignment and Execution – Finally, Price to Scale emphasizes the importance of diffusing internal team biases and establishing a unified view on pricing. Make sure your product, sales, and finance teams agree on how the contributions of workflow automation and data analytics should be quantified, so your pricing strategy is both consistent and justifiable.
In summary, our book, Price to Scale, guides you to carefully separate and assess the value of each component. Whether you opt for bundled packages or a modular pricing model (or even a hybrid of both), aligning your pricing metrics with actual usage and customer-perceived value is critical for successfully scaling a complex SaaS product that combines workflow and data analytics capabilities.