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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, here’s a recommended approach to test bundle pricing versus individual product pricing:
• Directly compare customer behavior:
Run controlled A/B tests where one group of customers sees the bundled offer and the other sees individual product pricing. Track conversion rates, upsell opportunities, and overall revenue to understand how each option performs in your specific market context.
• Evaluate perceived value and flexibility:
Bundling can drive growth and reduce churn, yet it may limit your ability to upsell or cross-sell individual products later. Use your tests to see if customers appreciate the bundled value or if they prefer choosing features individually. This directly reflects our discussion in Price to Scale about aligning pricing strategies with customer needs.
• Experiment with naming and structure:
As noted in the book, don’t simply replicate existing tiers with discounts. Consider rebranding bundles (e.g., moving from “Pro” and “Elite” to “Premium” and “Advanced”) to better differentiate the offerings. This approach helps avoid easy comparisons and can influence customer perception of value.
• Consider your customer lifecycle:
If your product is new, customers might lean towards a simplified, linear pricing model rather than a complex three-part bundled model. Testing will allow you to understand which model better drives initial adoption and long-term revenue growth.
In summary, the best way to test these models is to design experiments (A/B tests or pilot programs) that carefully track key metrics like conversion, revenue growth, and customer satisfaction. This data-driven approach will help you fine-tune your pricing strategy and ensure that the chosen model aligns with your business goals and customer expectations, as detailed in Price to Scale.