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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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Our pricing testing methodology employs distinct approaches for prospects versus existing customers, each designed to extract valuable insights while maintaining appropriate engagement for each group.
Testing with Prospects
For prospects, we utilize several research methods tailored to their limited familiarity with your product:
In-Person Qualitative Studies - Our unique approach involves structured interviews with a mix of prospects using both quantitative and qualitative questions. This is particularly effective for B2B enterprise products, involving 15-20 interviews with potential customers.
Van Westendorp Price Sensitivity Surveys - These help identify acceptable price ranges by asking four targeted questions that establish price thresholds for prospective customers.
Conjoint Analysis - This methodology presents prospects with hypothetical product configurations that vary in features and pricing. Each new screen adapts based on previous responses to maximize data quality without overwhelming the respondent. This helps determine optimal package configurations.
Feature Prioritization (Max Diff) - This technique helps identify which features prospects value most, guiding both packaging decisions and value messaging.
Testing with Existing Customers
For existing customers, we leverage their experience with your product to gather more nuanced insights:
Tier/Package Performance Analysis - We evaluate metrics like average deal size, upsell rates, discounting patterns, and shelfware to optimize pricing and go-to-market alignment.
Usage Analysis - We analyze actual product usage to determine if it aligns with your selected pricing metrics and whether customers are receiving appropriate value.
Pricing Power Assessment - We examine your $/metric performance across sales teams, geographic regions, segments, and product lines to understand pricing power with existing customers.
Customer Willingness to Pay (WTP) Research - Through targeted surveys and interviews, we assess existing customers' perceptions of value and price sensitivity for both current and potential new features.
Integrated Approach
Our most effective methodology combines insights from both groups:
- We conduct comparable qualitative studies with both prospects and existing customers, allowing for direct comparison of value perception
- Findings from existing customers inform how we structure testing with prospects
- Data from prospects helps identify potential gaps in the existing customer experience
This dual-track approach ensures pricing strategies account for the entire customer lifecycle, from acquisition through retention and expansion.