.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 book, Price to Scale, the right approach is to tie pricing directly to the success a customer is achieving with your product, which means integrating customer success metrics or KPI improvements into your pricing strategy. Here’s how you can do it:
• Directly Link KPIs with Value:
Our book explains that you can calculate a consolidated metric (such as a churn propensity score) by combining various customer success indicators. This score helps to identify which customers are in a position to benefit the most from targeted pricing offers driven by their improvements in key business metrics.
• Tailored Offers and Price Adjustments:
Once you segment your customers based on these KPIs, you can offer personalized pricing reductions. For instance, the book describes using discounts—from a baseline of 10% up to 30%—as both an incentive and a reward. Importantly, when you offer these adjustments, asking customers to commit to longer-term contracts ensures that the reductions are justifiable and mutually beneficial.
• Improved Communication and Ongoing Feedback:
Effective communication is critical. As our book outlines, making sure customers understand their continuing value is achieved through personalized outreach (emails, webinars, in-app messaging, and direct calls) with your account management team. This ongoing dialogue helps monitor the impact of your pricing adjustments and fine-tunes your strategy based on feedback and evolving customer success.
• Monitoring Impact:
The approach isn’t set in stone. You must establish a feedback loop to monitor changes in customer satisfaction, churn rates, and overall revenue. This iterative process lets you adjust pricing based on how customers’ key metrics improve over time.
In summary, our pricing strategy from Price to Scale supports a model where pricing is closely aligned with your customers' success. This means integrating customer success metrics, offering tailored price adjustments with longer-term commitments, effective and personalized communication, and continuous monitoring and feedback. This strategy not only rewards customers for their positive performance but also builds a sustainable pricing structure that scales with customer success.