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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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Balancing customer acquisition with revenue optimization requires a strategic approach to pricing that aligns with your go-to-market (GTM) strategy. Here's how to achieve this balance effectively:
Align Pricing with Your GTM Motion
The foundation of balancing acquisition and revenue is ensuring your pricing model matches your sales approach. For example, our work with a $30M ARR eCommerce SaaS company involved revamping their packaging and pricing to fit their enterprise-focused GTM motion, resulting in 15-30% increases in deal sizes with 100% sales team adoption.
Rationalize Your Packaging Structure
Simplifying your pricing tiers can reduce friction in the sales process while optimizing revenue:
- Consolidate offerings (like reducing from 12 to 5 core packages) to clarify value proposition
- Remap feature sets to better align with customer needs
- Create logical upgrade paths that encourage expansion
Implement Appropriate Pricing Metrics
Selecting the right pricing metrics is crucial for balancing growth and revenue:
- Create combination pricing metrics that reflect both customer value and your revenue needs
- Design pricing structures with appropriate guardrails, like platform fees combined with usage-based elements
- Analyze how your pricing metrics perform across different segments and sales teams
Conduct Empirical Pricing Research
To find the optimal balance, analyze your:
- Tier/package performance across average deal size, upsell rates, and discounting
- Price bearing capacity across different market segments
- Product usage patterns in relation to your pricing metrics
Enable Your Sales Teams
Ensure organization-wide alignment by developing:
- Pricing calculators and sales enablement materials
- Training programs that support the pricing model
- Clear communication strategies for both internal teams and customers
By implementing these approaches, you can create a pricing strategy that both attracts new customers and maximizes revenue from your customer base, as demonstrated in our case studies where companies have increased deal sizes, eliminated revenue reduction risks, and achieved full sales team adoption.