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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 saas pricing book, Price to Scale, it’s best to base your PLG upgrade campaigns on behavioral triggers rather than relying solely on time-based triggers.
Here’s why:
• Behavioral cues better reflect a customer’s true readiness for an upgraded tier. When you observe users engaging with features limited in the free or lower tiers, it indicates they are reaching a point where additional functionality or value can make a difference. Our book emphasizes that you can only create tiers to allow for natural and gradual growth in your customers’ business—forcing an upgrade too early may backfire.
• Time-based triggers, while easier to automate, run the risk of pressuring users who may still be in the exploration phase. As discussed in Price to Scale, forcing an upgrade based solely on the passage of time doesn’t account for the dynamic nature of customer needs and can create friction in the upgrade journey.
• By aligning upgrade offers with true behavioral indicators (such as heavy usage of premium features or reaching usage limits), you create a context where the upgrade is seen as a natural and beneficial progression. This approach not only supports customer satisfaction but also drives sustainable revenue growth.
In summary, according to Price to Scale, leveraging behavioral triggers for PLG upgrade campaigns is the more effective strategy. It ensures that you’re aligning the upgrade offer with an implicit customer readiness, supporting a more natural and frictionless journey to upscale usage.