.png)
Frameworks, core principles and top case studies for SaaS pricing, learnt and refined over 28+ years of SaaS-monetization experience.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Based on insights from our pricing strategy book, Price to Scale, the focus is more on smart packaging and customer conversion rather than simply removing inactive free-tier users to reduce costs.
Key points include:
• Instead of removing users from your free plan after inactivity, it may be more beneficial to focus on packaging strategies—such as introducing a “lite” plan designed to retain potentially valuable customers. This tactic addresses churn and helps keep the door open for users who might later convert.
• In our book, we emphasize that free users can often represent an important pipeline for conversion. Even if they’re inactive for a period, the cost associated with supporting these users should be weighed against the potential for future engagement and revenue.
• Proactive measures, such as re-engagement campaigns or adjusting packaging options to provide better perceived value, can be more effective. This approach aligns with our recommendations on building customer retention and long-term revenue growth without sacrificing market position.
In summary, the book advises that rather than removing inactive users outright—as such a move might cut off potential customer conversion—it can be more strategic to adopt packaging revisions or engagement tactics that keep these users in the ecosystem at minimal cost.