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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, creating industry-specific bundles can be effective under certain circumstances but must be approached with caution. Here’s a breakdown of the key points:
• Bundling can drive growth and reduce churn by enhancing customer loyalty and increasing ARPU. However, as detailed in our book, bundling also comes with trade-offs. For example, it may limit your flexibility to upsell or cross-sell individual products later on and could make it harder for customers to see the full value of each component.
• An overly tailored bundle might overwhelm customers with features they don't require, which can impact satisfaction and lead to perceptions of unnecessary complexity.
• The book also presents a more flexible alternative—modular packaging. Instead of fixed, industry-specific bundles, modularity allows you to map product features to specific use cases. This approach lets you customize offerings to address unique industry needs without sacrificing the clarity of individual product value.
In summary, while industry-specific bundles can work well when they are clearly aligned with customer needs, consider a modular, bespoke offering that retains pricing flexibility and clear value communication. This way, you capture revenue more effectively without complicating your pricing structure.