How to price your SaaS product

How to price your SaaS product

This article will help you approach your pricing strategy.

Step 1️⃣  Determine your value metric. A “value metric” is essentially what you charge for. To determine your value metric, think about what value are you directly providing your customer?

Step 2️⃣  Determine your customer profiles and segments. When used properly, quantified personas and segments are beautiful tools.

Step 3️⃣  User research + experimentation. Beyond your value metric and core segments, the monetization game becomes extremely tactical and research-based.

Rapid-dire bonus advice:

  • You should localize your pricing to the currency and willingness to pay of the prospect's region
  • Freemium is an acquisition model, not a part of pricing
  • Value propositions matter oh so much
  • Don't discount over 20%
  • For upgrades to annual discounts don't use percentages and try offers
  • Should you end your price in 9s or 0s? Depends on your price point
  • You should experiment with your pricing in some manner every quarter
  • Case studies boost willingness to pay quite a bit
  • Design helps boost willingness to pay by 20%
  • Integrations boost retention and willingness to pay

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