Should certain features (like SSO, advanced security compliance, dedicated account manager) be available only in an enterprise plan? How do we decide which features justify a separate enterprise tier instead of including them in cheaper plans?

Based on the insights provided in our pricing strategy book, Price to Scale, features like SSO, advanced security compliance, or a dedicated account manager should generally be reserved for an enterprise plan when they address the unique needs of large organizations. Here’s how to decide which features justify a separate enterprise tier:

• Directly Addressing Enterprise Needs:
In our book, we illustrate how certain functionalities—such as enhanced security protocols and dedicated service (like an account manager)—are tailored to the operational complexity and scale of enterprise customers. These features add tangible value to larger organizations that require robust integrations and compliance measures, much like Salesforce’s approach with its graded packages.

• Modular Packaging as a Guide:
We discuss an approach where products are modularly packaged, meaning some add-ons are designed specifically for enterprise segments. For instance, “Account Health Reporting” is an example of a modular feature reserved for the enterprise tier while other features might be offered as add-ons to smaller companies. This strategy helps in segmenting your market based on distinct needs and willingness to pay.

• Value and Willingness to Invest:
The decision also hinges on understanding your customer segments. If enterprise customers consistently show that they require and are willing to invest in these advanced features for improved operational efficiency and security, it makes sense to position them in a separate, premium tier. In contrast, if including such features in mid-range or startup-focused plans overcomplicates the product offering or inflates the cost for smaller users, then a separate enterprise plan is warranted.

• Clear and Digestible Pricing:
Our book emphasizes the importance of simple metrics that customers understand. When enterprise buyers see clearly defined features in their package that directly map to their needs—such as advanced security and comprehensive support—they’re more likely to appreciate the pricing structure.

In summary, reserve features like SSO, advanced security compliance, and a dedicated account manager for an enterprise plan when:
• They specifically address the complex needs of large organizations.
• Modular packaging strategies demonstrate a clear segmentation between enterprise and smaller segments.
• There’s proven market consensus that these functionalities are essential and valued by enterprise customers.

This approach not only streamlines your product offering but also reinforces your market positioning, ensuring that each segment receives a tailored and understandable set of features.