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Should we highlight one tier as 'most popular' and how do we choose which one?

Based on the principles in our SaaS pricing book Price to Scale, it can be beneficial to highlight one tier as “most popular” if that tier consistently delivers the best balance of features and price for your target customer segment. Here are a few key points to consider:

• Anchor and Nudge: In many SaaS pricing models—such as the Good-Better-Best approach—the middle option often serves as an anchor. When customers see it highlighted as “most popular,” it signals that many others have chosen it, which can nudge new prospects toward the same decision.

• Data-Driven Decision: Choose the “most popular” tier based on empirical evidence. Look at historical usage or sales data to determine which package offers an optimal balance between value and cost. This tier should ideally represent the mix of features that meets the largest market need without overwhelming less price-sensitive customers.

• Clarity for Sales and Marketing: A clearly defined “most popular” tier—supported by a detailed grid outlining features, geographies, constraints, and implementation notes (as described in our book)—provides internal clarity. It helps answer key customer questions on what exactly they’re buying, which improves both the sales motion and customer experience.

In practice, the highlighted tier should feel like the natural choice if customers are unsure of what to pick. The book emphasizes using clear product grids and regular updates to ensure that every team member, from sales to customer support, can easily explain the value proposition of each plan.

In summary, yes—you can highlight one tier as “most popular” if it is the best representative of value for your market segment. The choice should be driven by both qualitative insights (how customers perceive the value) and quantitative data (sales performance and usage patterns), ensuring that it truly is the best option for most of your customers.

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