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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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Based on our comprehensive approach, Monetizely determines the right pricing metric for AI tools through a multi-faceted methodology that combines empirical research, quantitative analysis, and qualitative validation.
Our Pricing Metric Selection Process
We employ three primary research approaches when determining the optimal pricing metric for AI tools:
- Statistical/Quantitative Analysis
- Price point measurement using Van Westendorp surveys
- Comprehensive package identification through conjoint analysis
- Feature prioritization using Max Diff methodology
- Empirical Research
- Assessment of pricing power by analyzing $/metric performance across different segments, geos, and tiers
- Tier/package performance analysis examining discounting patterns, usage trends, and shelfware
- Usage analysis to verify alignment between customer behavior and proposed pricing metrics
- In-Person Qualitative Research
- Monetizely's unique approach to validating pricing and packaging with actual clients and prospects
Specialized AI Pricing Considerations
For AI tools specifically, our process includes:
- GenAI pricing strategy development tailored to the unique value delivery mechanisms of AI products
- Analysis of whether usage patterns align with the selected pricing metrics
- Evaluation of pricing models that effectively capture value from AI-specific capabilities
- Consideration of strategic pricing structures to prevent commoditization
Real-World Implementation
Our approach is grounded in practical application, as demonstrated in our case studies. For example, we helped a $10M ARR SaaS company transition from an ad-hoc pricing model to a structured approach with:
- Alignment between pricing strategy and go-to-market motion
- Rationalized packaging structure
- Implementation of a combination pricing metric that accurately reflected value delivery
Through our dedicated pricing workshops, we help AI companies develop and refine pricing metrics that maximize revenue while maintaining market competitiveness. Our methodology ensures the selected metrics align with both customer value perception and your strategic business objectives.