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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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Limitations of Traditional Pricing Surveys
Traditional pricing surveys face several significant limitations that can impact their effectiveness:
Hypothetical Bias: Survey respondents often state what they think they would pay rather than what they would actually pay in real purchasing situations.
Context Limitations: Standard methods like Van Westendorp surveys provide basic price point ranges but lack deeper context about feature value, competitive positioning, and segment-specific needs.
Cost and Complexity: Traditional methods such as conjoint analysis are prohibitively expensive ($150k+) and often difficult to apply effectively in B2B enterprise settings.
Rigid Methodology: Many pricing research methods follow a waterfall approach that doesn't adapt well to agile product development cycles common in modern software companies.
Preference vs. Behavior Gap: What customers say they prefer in surveys frequently differs from their actual purchasing behaviors.
Our Approach to Overcoming These Limitations
We've developed a multi-faceted methodology to address these limitations:
1. Agile, In-Person Structured Research
Our signature approach combines quantitative and qualitative methods through structured interviews with 15-20 clients and prospects. This methodology is particularly effective for B2B enterprise products where traditional surveys fall short.
2. Comprehensive Research Portfolio
We utilize a balanced mix of research methods:
- Statistical/Quantitative: Van Westendorp surveys, conjoint analysis, and MaxDiff for feature prioritization
- Empirical: Analysis of pricing power across segments and tiers, and performance measurement of existing pricing structures
- In-Person Qualitative: Our unique approach to validating pricing and packaging directly with clients and prospects
3. Operational Experience Integration
With 28+ years of hands-on pricing leadership experience at companies like Zoom, Twilio, DocuSign, and LinkedIn, we understand the practical realities of implementing pricing strategies across various systems (CPQ, billing, sales compensation).
4. Capital Efficiency
Our customized research approach delivers more impactful insights at significantly lower costs than traditional methods, making robust pricing research accessible to more companies.
5. Product-First Mindset
Unlike pricing specialists who may lack industry context, our product management and marketing background ensures pricing strategies align with product development cycles and market needs.
By combining these approaches, we overcome the inherent limitations of traditional pricing surveys and deliver pricing strategies that are empirically sound, contextually relevant, and operationally feasible.