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Estd 4.22.2023
Based on our saas pricing book, Price to Scale, it’s generally best to include the core features that have broad appeal in every tier, while using advanced or specialized capabilities to differentiate between tiers. Here’s a more detailed explanation:
• Core Features for All Tiers:
The book advises that features with broad appeal—which help drive overall package value and conversion rates—should be part of every tier. These core features form the baseline value and attract a wide range of prospects.
• Differentiation with Advanced Capabilities:
Advanced or niche features, on the other hand, are best used to differentiate between packaging tiers. By carefully assigning such features to higher tiers, you allow for a natural upsell path and better segment your market, as detailed in the good-better-best model explored in the book.
• Balancing Simplicity and Upsell Opportunity:
The caution highlighted in Price to Scale is that bundling in every feature across all tiers can sometimes block valuable downstream upsell opportunities. It’s important to maintain a balance—integrating essential features while reserving advanced capabilities for those customers who need or are willing to pay for them. This approach ensures that you don’t dilute the value proposition of your higher tiers.
In summary, our saas pricing book, Price to Scale, emphasizes including core features in every tier for broader appeal, while differentiating advanced capabilities to create clear gradations in value. This strategy helps in aligning each package with specific customer segments and maximizes both conversion and expansion opportunities.