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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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Below is a concise answer based on the approach described in our saas pricing book, Price to Scale:
Begin with a stable framework
Rather than constantly changing prices for different customer groups, set a clear pricing framework (or anchors) that reflects your product’s positioning. Our book emphasizes that clear positioning is essential; if customers understand the value you're consistently offering, subtle tests become less noticeable.Use AI in an internally segmented, controlled test environment
Instead of showing customers ever-changing prices, deploy AI to run A/B or multivariate tests internally. The AI can simulate different price scenarios and identify customer sensitivity and potential revenue impacts. You then roll out a stable price for each customer segment based on tested insights. This methodology helps avoid inconsistent pricing being shown to customers while still leveraging AI insights.Establish pricing anchors and industry benchmarks
As discussed through our examples in Price to Scale, anchoring your tests on solid industry data (such as usage-based pricing metrics or per-agent pricing) serves to reassure customers. Whether you opt for a usage-based model or another metric, anchoring the initial pricing strategy helps build trust and reduces the impression of randomness during tests.Ensure consistency over time
Rather than frequently adjusting prices on the fly, determine clear test periods and customer cohorts. AI can analyze customer behavior during these periods, and when a winning price is identified, it’s introduced in a controlled and consistent manner. This staged approach minimizes potential alienation and builds long-term customer trust.
In summary, the best way to use AI for price testing—without alienating customers—is to run controlled internal experiments using AI insights, maintain a stable pricing framework with clear anchors, and then rollout consistent pricing for each customer segment. This approach, as laid out in our pricing strategy book, Price to Scale, ensures that customer trust is maintained while you refine your pricing for optimal revenue outcomes.