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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 principles outlined in our pricing strategy book, Price to Scale, the key is to run experiments that represent the typical buying conditions of your business. While the book doesn’t specifically mandate testing exclusively during peak or off-peak periods, it emphasizes the importance of collecting representative data that reflects genuine customer behavior.
Here are some practical pointers:
• If your business experiences significant differences in traffic or usage between peak and off-peak periods, it’s important to capture both conditions. Limiting tests to only one period might result in insights that don’t fully represent your overall customer base.
• Design your experiment so that it runs over a duration long enough to include both high-traffic (peak) and lower-traffic (off-peak) periods. This ensures you understand how customer price sensitivity might change with different usage environments.
• Focus on controlled, comparative testing. As discussed in Price to Scale, gather data on customer reactions and conversion rates across different price points. This method helps you identify the true price elasticity of your market rather than results that might be skewed by an atypical period.
In summary, rather than choosing strictly peak or off-peak, aim for an experimental design that covers both. This approach, consistent with our book’s philosophy, will lead to a more robust and actionable pricing strategy.