
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.
Join companies like Zoom, DocuSign, and Twilio using our systematic pricing approach to increase revenue by 12-40% year-over-year.
In the complex world of enterprise applications, pricing strategy serves as a critical determinant of market positioning, competitive advantage, and long-term revenue sustainability. Effective pricing models not only drive profitability but also significantly influence customer adoption rates and retention across the enterprise software ecosystem.
Enterprise application pricing presents unique challenges compared to other software categories. The complex buying process typically involves multiple stakeholders with different priorities—technical evaluators focus on features and integration capabilities, while financial decision-makers scrutinize ROI and long-term costs. This multi-stakeholder environment requires pricing models that address varied concerns while remaining straightforward enough for effective sales conversations.
The enterprise application market faces significant segmentation challenges, with customers ranging from mid-market organizations to global enterprises with vastly different usage patterns, deployment requirements, and value expectations. Choosing appropriate pricing metrics becomes particularly difficult—user-based models may work for some applications but can severely limit adoption in others where widespread organizational use drives value. Meanwhile, consumption-based models offer scalability but may create budgeting uncertainty for enterprise customers.
Digital transformation initiatives have accelerated adoption of cloud-based enterprise applications, creating pressure to transition from traditional perpetual licensing to subscription and usage-based models. This shift requires careful consideration of migration paths for existing customers while remaining competitive for new prospects. Additionally, enterprise applications increasingly incorporate AI capabilities, raising questions about how to monetize these advanced features without creating pricing friction or diminishing perceived value of core functionality.
Monetizely brings unparalleled experience to enterprise application pricing challenges, with 28+ years of operational pricing leadership across industry leaders including Zoom, Twilio, DocuSign, LinkedIn, and other major SaaS companies. Unlike traditional consultants who lack real-world operational experience, our team has hands-on expertise navigating the complexities unique to enterprise software environments—from CPQ systems and engineering feature flags to billing systems, sales compensation adjustments, and comprehensive financial analysis.
Our approach recognizes that traditional pricing research methods often fall short in enterprise B2B settings. High-cost conjoint analysis (typically $150k+) frequently proves difficult to effectively apply in complex enterprise environments. Instead, Monetizely delivers pragmatic, results-oriented pricing strategies tailored to the specific dynamics of enterprise application markets.
This expertise is demonstrated through our successful case studies. For a $10 million ARR IT infrastructure management software company struggling with inconsistent sales and customer objections due to lump sum subscriptions without clear packages or pricing metrics, Monetizely implemented a transformative pricing strategy. We aligned their pricing approach with their go-to-market strategy for high-ASP enterprise sales, rationalized their product packages from four to two with remapped feature sets, and created a combination pricing metric based on users and company revenue—resulting in their first consistent pricing model with significant improvements in sales effectiveness.
Similarly, for a $30-40 million ARR eCommerce CX SaaS company facing declining ASPs after a failed pricing implementation, our team revamped packaging and pricing to properly align with their enterprise-heavy sales motion. The results were impressive: deal sizes increased 15-30% with 100% sales team adoption, while product packages were rationalized from 12 to 5 core offerings across 3 product lines.
Monetizely offers two primary service models designed to address the diverse needs of enterprise application providers:
Our ongoing partnership model provides continuous pricing optimization through:
Quarterly Pricing Performance Reports: Detailed analysis by tier, package, and product line tracking critical metrics including ARR, discounting patterns, and upsell rates to monitor pricing effectiveness and identify emerging opportunities.
Financial, Discounting, and Churn Analysis: On-demand analytical support addressing specific business challenges and providing data-driven insights for pricing decisions.
Internal Pricing Workshops: Collaborative sessions focused on packaging, pricing metrics, and price point development to refine existing strategies and create new pricing approaches aligned with market conditions.
Customer Segmentation & Needs Mapping: Identification of distinct customer segments with unique value perceptions, enabling targeted pricing strategies that maximize revenue potential across your enterprise customer base.
For organizations requiring comprehensive pricing transformation:
Pricing Diagnostic: Thorough assessment identifying strategic pricing opportunities through comprehensive financial analysis, stakeholder interviews, and sales data evaluation.
Pricing Model Benchmarking: Evaluation of current pricing structures against evolving industry standards and best practices, highlighting specific areas for improvement.
Implementation Planning and Support: Development of detailed roadmaps for pricing strategy rollout, including internal training, customer communication strategies, and system updates.
Tooling & Enablement: Creation of pricing calculators, sales enablement materials, and training programs ensuring organizational alignment and effective execution of new pricing models.
Our enterprise application pricing services are designed to deliver tangible results—increased average deal sizes, improved sales team effectiveness, reduced discounting, and sustainable revenue growth. By combining deep operational experience with proven methodologies tailored to enterprise software environments, Monetizely empowers companies to transform pricing from a friction point into a strategic advantage in the competitive enterprise application marketplace.
Join companies like Zoom, DocuSign, and Twilio using our systematic pricing approach to increase revenue by 12-40% year-over-year.
1
None of the other premier consultants have actually implemented complex pricing within companies like Twilio and Zoom. This requires operational systems understanding, not just strategy.
In addition, other consultants often "over egg the pudding", they know customers will buy approaches as long as they look/feel scientific, yet we have multiple customers who have spent more >$100k each on conjoint analysis which did not help them at all. We are careful with where we ask you to spend your money.
2
Willingness to pay is context-dependent and works best when analyzed alongside packaging and pricing metrics. We use structured surveys like Van Westendorp, Max Diff, Conjoint Analysis as well as in-person research interviews to gather actionable data.
3
The cost of milk or a McDonald's burger inflates. However, SaaS prices almost always deflate and requires both adjustment of product packages as well as innovation to remain relevant.
Additionally, AI adoption will drive a shift from user-based pricing to more usage/consumption based models to accommodate the very high costs of serving these products. Expect to see deflation over time here as well as the the cost of serving AI products drops by multiples every month.
4
We want to monitor discounting % per package, usage of features within the packages, upsell rate of features to see whether we have a good pricing motion or whether it needs adjusting.
5
The Monetizely team has over 28 years of collective experience in software pricing, having previously worked with industry leaders like Twilio, Zoom and DocuSign, ensuring expert guidance in SaaS pricing strategies.
6
We recommend doing a better job on the pricing testing phase and to mitigate risk roll out the pricing in a phased manner.
For 80-90% of cases, we do not recommend A/B testing as that creates too much market confusion and overhead (in certain cases, doing an advance roll out in a different geo can work).
7
Competitive information is helpful but only a small piece of the picture. Competitors are in different stages of growth. Their product functionality is also different.
We recently had a client where sales teams pushed for lower pricing to compete with current rivals, but the company’s strategic vision aimed to evolve into a new category, making the competitive pricing data less relevant.
8
To kickstart your SaaS pricing optimization, consider consulting with the experts at Monetizely. You can also deepen your understanding by reading our book "Price to Scale" and enrolling in "The Art of SaaS Pricing and Monetization" course on Maven. These resources are crafted to equip you with the necessary skills and knowledge to refine your pricing strategy effectively.