Paddle’s Post

Transcript

Hi, I'm Vivien. I'm a pricing strategist at Price Intelligently. We help SaaS and subscription companies with their pricing and packaging strategy. These were some of the top questions that we heard about pricing at SaaStr. So in a highly competitive market, it's really important to remember that your customers are often shopping at more than one platform. They're looking at multiple pricing pages, talking to multiple sales reps, And so it's really important to consider your competitive landscape in those situations. On the flip side, if the market is largely not aligned on a single pricing strategy, then that gives you more leeway to be more creative with your pricing. A lot of companies have a really good background already on leveraging this competitive research. To determine their pricing strategy. However, it's when you combine competitive research with data-driven research about your specific product that you can garner the best insight into what is the best way to price for your industry and for your customer. O Enterprise companies typically have different feature needs and different willingness to pay than the rest of your customer base. Some features that we see often needed by large enterprises include single sign on, more collaboration tools, better user permission, and more integration. They also typically expect volume based gunning. Looking at feature preferences and willingness to pay can help us create the plans that are best. For your large customers. Another common topic that we got asked about at Zaster was how do we think about consumption based pricing? And so the answer more or less depends on the product that you're offering. But what you really want to be balancing out here is the trade off between flexibility and predictability. What we're seeing a lot now in this space is bundles of usage, meaning that, for example, if you have a three tier could better, better plan. Your basic plan may include up to 10 users, your mid tier plan may include up to 20 users, and then your enterprise plan may include an unlimited amount of users. And so you're not really charging your customer for every single unit usage. This can incorporate some level of predictability for your business while continuing to offer flexibility for your customers. Consumption based pricing can be more value aligned, but can sometimes also be harder to understand. So if we met you at Zaster at our boat party at our pricing breakfast, it was great to meet you. And if we didn't get a chance to meet, but you are interested in learning more about pricing, please reach out to our pricing team.