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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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Monetizely tailors pricing strategies for subscription-based software by aligning pricing models with go-to-market strategies and creating customized frameworks that enhance revenue while ensuring customer acceptance. Our approach includes several key elements:
Strategic Alignment
We ensure your subscription pricing model aligns perfectly with your company's broader GTM strategy. For instance, with a $10M ARR IT Infrastructure Management Software client, we transformed their lump sum subscriptions into an enterprise pricing model with a high ASP solution sale approach, directly matching their strategic goals.
Optimization of Packages and Feature Sets
We rationalize your subscription tiers to maximize value perception and minimize complexity:
- For the IT Infrastructure client, we streamlined from four packages to two with remapped feature sets
- For a $30-40M ARR eCommerce SaaS company, we reduced from 12 to 5 core packages across 3 product lines, resulting in 15-30% larger deal sizes
Advanced Pricing Metrics
We develop sophisticated pricing metrics tailored to your specific subscription business:
- Creating combination pricing metrics (e.g., users + company revenue) that scale appropriately
- Implementing usage-based pricing with platform fee guard rails when appropriate, as we did for Twilio's Contact Center BU
Research-Based Methodology
Our approach combines multiple research methods to validate subscription pricing strategies:
- Statistical/quantitative methods including Van Westendorp Surveys to measure price points
- Empirical analysis of pricing power across segments and tiers
- In-person qualitative studies with existing clients and prospects
Implementation and Enablement
We don't just recommend pricing changes - we help implement them:
- Developing detailed implementation plans for rolling out new subscription pricing
- Creating pricing calculators and sales enablement materials
- Supporting GTM systems integration across product metering, billing, CPQ, and sales compensation calculations
Results-Oriented Approach
Our tailored subscription pricing strategies deliver measurable outcomes:
- For Twilio, we implemented usage-based pricing while preventing a potential 50% revenue reduction
- For an eCommerce SaaS company, we achieved 15-30% increases in deal sizes with 100% sales team adoption
This comprehensive approach leverages our 28+ years of combined experience in software pricing from leadership positions at companies like Zoom, Squarespace, LinkedIn, Twilio, and Microsoft.