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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 Price to Scale, creating industry-specific tiers with tailored features and pricing can be a highly effective strategy—but it depends on your market and product maturity. Here are some key points from our book to consider:
• Direct Value Capture: Our book outlines the "Good – Better – Best" approach where packages are designed to address different customer segments. When customer use cases vary considerably by industry, tailoring packages to reflect these differences can help you extract the right amount of value from each market segment.
• Modular Approach: As discussed, a modular strategy allows you to build pricing tiers by bundling specific sets of features that resonate with distinct industries. Creating clear grids and documentation (as mentioned on page 97) can help ensure that your sales teams and customers alike understand which tier best meets their unique needs.
• Stage of Product Adoption: For newer products, customers might be more inclined to adopt a simpler, linear pricing model. In contrast, if your product is well-established, industry-specific tiers that highlight tailored features can drive predictable revenue and higher adoption rates, as noted in Chapter 3.
• Complexity versus Clarity: While industry-specific tiers can offer a better match for customer needs, they also add complexity. It's important that the defined tiers are communicated clearly—using well-maintained grids and documentation—to avoid confusion during sales motions.
In summary, if your target industries exhibit distinct operational requirements and willingness-to-pay variations, and you have a mature product offering, it can indeed be worth creating industry-specific tiers. However, always weigh the benefits of tailored value against the potential complexity in the pricing model.