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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 comprehensive pricing research methodologies, here are the most effective ways to test new price points:
Quantitative/Statistical Methods
Van Westendorp Price Sensitivity Measurement
This survey-based approach helps identify a range of acceptable price points by asking customers four key questions about pricing thresholds. It's an excellent starting point to determine price sensitivity and establish pricing boundaries.
Conjoint Analysis
This sophisticated approach presents customers with different product configurations that vary in features and pricing. The analysis creates a simulator that predicts market share across different tier options and price points, providing rigorous data on how different pricing scenarios might perform.
Max Diff Feature Prioritization
While primarily used for feature prioritization, Max Diff helps understand the relative importance customers place on different attributes. This informs your pricing strategy by showing which features drive the most value and can command premium prices.
Empirical Testing Methods
Tier/Package Performance Analysis
Analyze existing pricing tiers by examining metrics like average deal size, upsell rates, discounting patterns, and shelfware to optimize how your pricing aligns with your go-to-market strategy.
Pricing Power Analysis
Evaluate your price-to-metric ratio across different sales teams, geographies, segments, and product lines to understand where you have pricing power and which segments can bear higher price points.
Usage Analysis
Examine how customers actually use your product to determine if your pricing metrics align with usage patterns, ensuring your pricing structure reflects actual customer value.
Qualitative Methods
In-Person Qualitative Studies
Our unique approach involves interviewing 15-20 clients and prospects using structured presentations that include both quantitative and qualitative questions. This method is particularly effective for B2B enterprise products where direct feedback can provide invaluable insights.
Market Research & Field Testing
Market Research
Validate pricing model hypotheses through a combination of quantitative and qualitative research approaches before full-scale implementation.
Implementation Planning
For successful price testing, develop a detailed roadmap including internal training, customer communication strategies, and system updates to smoothly roll out new pricing changes.
The most effective price testing strategy often combines multiple methodologies to triangulate the optimal price points based on customer value perception, competitive positioning, and market demands.