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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 employs a comprehensive approach to test and validate new pricing models through a combination of quantitative, empirical, and qualitative research methods.
Research Methodologies
Monetizely uses three main categories of research approaches:
Statistical/Quantitative Methods
- Van Westendorp Surveys for price point measurement
- Conjoint Analysis for comprehensive package identification
- Max Diff for feature prioritization
Empirical Analysis
- Pricing Power Analysis: Understanding $/metric across geographies, segments, and tiers
- Tier/Package Performance: Analysis of discounting, usage, and shelfware for existing tiers
Qualitative Validation
- In-Person Qualitative Studies: Monetizely's unique approach to validating pricing and packaging across a sampling of clients and prospects
Testing and Implementation Process
The testing and validation process typically follows a structured methodology:
- Hypotheses Formulation: Developing initial pricing model concepts based on business goals and market research
- Testing Phase: Validating hypotheses through the research methods mentioned above
- Launch Phase: Creating implementation plans for rolling out validated models
Projects generally take 6-10 weeks depending on the complexity of research methods chosen and the level of internal stakeholder alignment and data availability.
Implementation Support
Once a pricing model is validated, Monetizely provides:
- Detailed Implementation Plans: Creating roadmaps for rolling out new pricing strategies
- Internal Training: Ensuring teams understand and can effectively communicate the new model
- Customer Communication Strategies: Guidance on how to introduce changes to the market
- Tooling & Enablement: Development of pricing calculators and sales enablement materials
Case Study Example
For a $10M ARR IT Infrastructure Management Software company, Monetizely validated and implemented a new pricing model by:
- Aligning pricing strategy with GTM strategy (enterprise pricing for high ASP solution)
- Rationalizing four packages down to two with remapped feature-sets
- Creating a combination pricing metric of users and company revenue
The result was the successful launch of the company's first consistent pricing model, reducing sales friction and enabling monetization of new strategic features.