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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 the guidance in our pricing strategy book, Price to Scale, it can be a very effective approach to offer existing customers the option to lock in current pricing for an additional year. Here are some key points to consider:
• Providing a pricing lock can serve as a grace period. This helps customers adjust to any upcoming changes in the pricing structure without feeling sudden financial pressure.
• Segmenting your customers is crucial. As described in our book, different cohorts (for example, those on discount plans or heavy users) might benefit from varied segments of offers. Some customers might simply need the same deal for a bit longer, while others might value an alternative option—like an upgrade or a multi-year ramp deal—that adjusts gradually to the new price levels.
• Using a multi-year ramp deal, similar to strategies seen in companies like GitLab, allows customers to transition at a controlled pace. Starting with the existing rate and incrementally reaching the full rate over a set period can ease financial impact and provide predictable budgeting.
In summary, offering existing customers the chance to lock in current pricing can be a smart move when it’s part of a clearly segmented and thoughtfully communicated pricing strategy. This approach not only builds loyalty but also makes the transition to any new pricing structure smoother. For additional guidance, we recommend reviewing the relevant sections in Price to Scale that discuss customer segmentation and transitional pricing models.