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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 our discussions in Price to Scale, it’s generally more insightful to involve new customers in your pricing experiments rather than relying solely on existing ones. Here’s why:
• Testing with new prospects—the ones who aren’t already familiar with your product—provides a more accurate reflection of market demand. When you only test on current website visitors or loyal customers, their baseline interest can skew results; they’re more likely to buy simply because they’re already in your funnel.
• The book cautions against the common mistake of only engaging pre-existing customers. As noted, if you’re offering your product at a lower price to those who have already shown intent (by visiting your website), the positive response can be misleading. It doesn’t necessarily indicate that the broader market would react the same way.
• That said, there is value in segmenting your customer base. For existing customers—who might have different usage patterns or negotiated discounts—it’s useful to tailor and even vary the approach. Our book recommends carefully segmenting these users when offering different alternatives, so you’re clear about what works for each cohort.
In summary, our pricing strategy book, Price to Scale, emphasizes the importance of testing on a diverse audience. Include new customers in your experiments to capture real market responses while appropriately segmenting the existing base to learn from varied behaviors. This balanced approach leads to more robust and actionable pricing insights.