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Estd 4.22.2023
Based on the insights shared in Price to Scale, the answer depends on several factors, including the clarity of your customer segments, the distinct value of each product, and your overall pricing strategy.
Here are the key takeaways from our saas pricing book:
• Bundled offerings can drive growth and reduce churn if they are carefully designed to match the needs of your target segments. However, bundling from the outset can reduce your flexibility. It may limit the opportunity to upsell or cross-sell individual products later on, as well as restrict your ability to tailor pricing as you learn more about each product’s unique value (see Price to Scale, modular approach discussion).
• Launching products individually allows you to gather real-world data on customer demand and willingness to pay. This phased approach can help you understand the distinct value propositions of each product. Once you have these insights, you can bundle them more effectively, ensuring that the bundled offer reflects customer needs without diluting the value of individual components.
• The book outlines strategies such as the Good-Better-Best packaging model, where each tier is crafted around what customers value most for their specific needs. If your segmentation is still evolving or if there's significant variance in how customers use your products, starting with individual launches can provide the necessary clarity before forming a unified bundled package.
In summary, if you're unsure of the demand patterns or need to validate the value proposition of each product independently, it’s often beneficial to launch them individually first. Once you have a deeper understanding of customer needs and can accurately attribute value to each product, bundling them later will likely be more effective and aligned with your pricing strategy goals.