
Frameworks, core principles and top case studies for SaaS pricing, learnt and refined over 28+ years of SaaS-monetization experience.
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Join companies like Zoom, DocuSign, and Twilio using our systematic pricing approach to increase revenue by 12-40% year-over-year.
Based on our saas pricing book, Price to Scale, here are some key principles for timing your promotional campaigns to maximize impact while preserving your product’s perceived value:
• Directly target the right segments
Our approach recommends segmenting your customer base to identify which cohorts are most receptive to promotions. For instance, discount campaigns can be timed based on a churn propensity score or specific usage patterns to reach customers who are most likely to benefit from—and appreciate—a tailored offer.
• Tie discounts to customer commitment
Rather than offering blanket price cuts that may undermine perceived value, promotions should be paired with incentives such as longer contract commitments or upgrading the customer's plan. This ensures that any price reduction is viewed as a genuine gesture of appreciation rather than a devaluation.
• Use data-driven timing and clear communication
Test your promotions with careful attention to data. For example, run campaigns not only on your existing website visitors (who are already aware of the product’s value) but also as part of a broader demand-generation effort. This helps ensure that the impact is maximized without simply attracting bargain hunters. Additionally, clear messaging around why the discount is being offered—a personalized touch rather than a one-size-fits-all reduction—is critical. As discussed in Price to Scale, explaining the rationale behind the timing (such as targeting periods of low engagement or addressing churn risks) helps maintain the integrity of the product’s value.
• Differentiate your promotional offers
Plan your offers so that they don’t simply undercut your regular pricing tiers. Instead, consider creating a new lineup or offering an upgrade or add-on on the same value principle. This makes it harder for customers to compare discount offerings directly with standard packages, protecting overall brand value.
In summary, the book advises that the strategic timing of promotions rests on detailed customer segmentation, data-driven decision-making, and linking discounts to value-adding actions. By doing so, you can achieve maximum campaign impact while ensuring that price reductions are seen as supportive, measured gestures rather than devaluation of your product.
Join companies like Zoom, DocuSign, and Twilio using our systematic pricing approach to increase revenue by 12-40% year-over-year.