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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 saas pricing book, Price to Scale, the key is to strike a balance between reinforcing the value freemium users already experience and gently highlighting the enhanced benefits of the premium offering. Here’s how to approach it:
• Focus on the existing value:
Our book emphasizes that freemium users already see real benefits from your product. By clearly communicating the effectiveness and efficiency of their current usage, you boost user satisfaction and foster trust. This positive experience lays a strong foundation for any future upgrade discussions.
• Subtly illustrate what's missing:
While reinforcing current benefits, it's also important to show how premium features can further enhance their outcomes. Price to Scale highlights that product development and feature enhancements should naturally lead freemium users toward realizing additional value. This approach safeguards against the perception of aggressive upselling while still outlining the clear advantages of upgrading.
• Create a seamless transition:
By integrating cues about enhanced capabilities within the context of their existing experience, you help users envision a natural progression. This method not only supports retention within the free framework but also primes users to consider premium options as they discover incremental value over time.
In summary, our pricing strategy recommends reinforcing the value that freemium users already appreciate, while using targeted, incremental messaging to reveal the extra benefits they can access through premium plans. This balanced approach helps maintain a positive user experience and fosters organic upgrades.