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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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We employ a comprehensive mix of pricing research methods to validate our pricing strategies, organized into three key categories:
Statistical/Quantitative Methods
- Van Westendorp Surveys: Used for price point measurement to find a range of acceptable price points through a set of four strategic questions
- Conjoint Analysis: Our approach to comprehensive package identification, presenting respondents with varied product configurations that differ in attributes like features and pricing
- Max Diff Analysis: A feature prioritization technique where respondents indicate which features are most and least important, resulting in relative importance percentages for each attribute
Empirical Methods
- Pricing Power Analysis: We examine $/metric performance across sales teams, geographic regions, segments, and product lines to understand pricing power and the ability to sustain desired price points
- Tier/Package Performance Analysis: An evaluation of your tiers/packages focusing on average deal size, upsell rates, discounting patterns, and "shelfware" to optimize pricing-to-GTM motion fit
- Usage Analysis: Examining product usage patterns to verify alignment with selected pricing metrics
In-Person Qualitative Methods
- Structured Interviews: Our unique approach involves interviewing 15-20 clients and prospects using a structured presentation that includes both quantitative and qualitative questions
- This method is particularly effective for B2B enterprise products and represents Monetizely's distinctive research methodology compared to traditional pricing consultants who rely on more rigid research approaches
Our methodology integrates these research methods throughout a 6-10 week project timeline, divided into Hypotheses Formulation and Testing & Launch phases. This process ensures pricing strategies are validated through multiple complementary approaches before implementation.