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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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Below is an approach based on our pricing principles from our SaaS pricing book, Price to Scale:
Directly test across distinct cohorts
• Rather than limiting tests only to website visitors or existing customers, extend your experiments to prospects acquired via multiple channels.
• Ensure your test groups include those reached through broad demand generation campaigns—not just those already engaged on your site.Keep experiments simple
• Use a limited number of pricing tiers or variations in each test. The book emphasizes that fewer tiers often yield higher conversion rates, as they’re easier to analyze and understand for both you and the customer.
• For example, if you’re testing four different tiers on one channel and only two on another, you may want to compare conversion rates within each group to get a clear picture of customer response.Vary the offerings for different channels
• Since customers coming from different acquisition channels might have unique perceptions and expectations, consider offering slightly different packages or pricing structures.
• This method allows you to observe if specific value propositions or discounting strategies resonate better with certain channels.Measure outcomes carefully
• Track not only the conversion rates but also the key value drivers that guided your initial hypothesis.
• During testing, note that while the directional change in customer “take rate” might reflect initial research insights, the intensity (e.g., expecting a 50% increase vs. actually obtaining a 20% increase) can vary by acquisition channel.
In summary, our book Price to Scale recommends setting up controlled experiments across diverse customer cohorts, keeping test groups simple, and tailoring your pricing offers to the channel. This method ensures that you get actionable insights into which pricing strategies work best for each customer acquisition channel.