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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 a structured approach based on the concepts from our pricing strategy book, Price to Scale:
Directly establish baseline metrics
• Before you see competitor pricing changes, define your baseline conversion rates and sales figures. This way, you have clear metrics to compare against once competitor adjustments occur.Gather accurate competitor data
• Our book emphasizes the importance of “data and insights.” Use competitive intelligence tools, pricing trackers, or market research to regularly capture competitor price updates. This external data provides a timeline that you can map to your internal performance shifts.Correlate timing with internal performance changes
• With the competitor data in hand, analyze your sales and conversion data over the same period. Look for patterns or sudden changes that coincide with competitor pricing adjustments.
• In our book we discuss using data to drive pricing insights (see tactics in Price to Scale, Chapter 9). This same mindset can be applied to understanding external influences.Isolate and account for other variables
• Since multiple factors can affect conversions (e.g., seasonality, marketing changes, or shifts in customer behavior), isolate the competitor pricing impact by controlling for these variables as much as possible.
• Consider running controlled experiments or A/B tests if feasible, which can help clarify the effect of price changes on buyer behavior.Continuous monitoring and adjusting
• Develop a routine reporting system or dashboard that tracks key metrics, so you can react quickly when you see trends emerging from competitor moves.
• By continually refining your data collection methods (as illustrated in our book’s focus on rigorous data analysis), you can better justify pricing decisions and adjustments.
In summary, by establishing clear baseline metrics, gathering timely competitor data, correlating changes, isolating external factors, and continuously monitoring the results, you can effectively track and understand the impact of competitor pricing changes on your own sales and conversions. This data-driven insight is a core principle discussed in our pricing strategy book, Price to Scale, enabling you to make informed, agile pricing decisions.