.png)
Frameworks, core principles and top case studies for SaaS pricing, learnt and refined over 28+ years of SaaS-monetization experience.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Based on our saas pricing book, Price to Scale, the best approach for expanding revenue from existing PLG customers is to treat upsells and expansion as a natural evolution of the customer’s journey. Here are the key steps recommended:
• Recognize the Upsell Opportunity: As customers grow and their needs increase, the demand for additional features or capacity often follows naturally. Our book emphasizes that expansion revenue should be approached with the same seriousness as new customer acquisition, ensuring that upsell strategies are well-planned and tailored to customer growth.
• Design Flexible and Adaptive Packaging: Rather than a rigid pricing structure, develop packages that allow room for incremental upgrades. This could involve:
– Using “Good-Better-Best” or modular packaging so that customers can easily move to a higher-tier package when their needs outgrow their current plan.
– Designing package options that prevent sticker shock during renewals, especially when the list price of a new plan might be significantly higher than the previous rate.
• Leverage Account Management in Larger Organizations: For more mature enterprises, adopting a “farmer” role—dedicated account managers who focus on nurturing long-term relationships—can help identify expansion opportunities early and guide customers through the upgrade process.
• Align Pricing Strategy with Customer Value: Evaluate the built-in value your customer is already using. If a user is consistently deriving more value than their current package permits, it’s a clear signal that an upsell could be beneficial without alienating them at renewal time.
In summary, our book recommends expanding revenue from existing PLG customers by using well-designed, flexible pricing structures combined with proactive, value-based customer engagement. This ensures that as customer needs evolve, the pricing can adjust accordingly while maintaining a strong relationship built on trust and perceived value.