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The underrated role of pricing in
driving SaaS revenue growth
Wordpress Hosting
€10
/month
€1
/month
€500+
/month
Three Levers of SaaS Growth
Growth = Acquisition x Pricing x Retention
Importance of Customer Success
5 Ways to Go $0 to $100M
Source: http://christophjanz.blogspot.com/
Planio Pricing Schema in January
Planio Pricing Schema in January
Silver Gold Diamond Platinum Enterprise
Team
Members
9 30 60 100 Unlimited
Distribution of # of Users
010203040
Boxplot of users
Insights from the Analysis
›75% of our customer base only needed Gold or
lower
›50% of our customer base only needed Silver
›Account with 10 team members was paying the same
price as an account with 30 team members.
›Conclusion: Our pricing scale was not calibrated to
our customers.
New Pricing Scheme
Silver Gold Diamond Platinum Enterprise
Team
Members
5 10 20 45 100
The New Pricing Plans
Grandfathering
›Don’t force any pricing changes on existing
customers
What happens when you don’t
grandfather…
Tool vs Solution
›You can charge multiples for a solution
compared to a tool, even if the underlying
software is the same.
Pricing as Part of User Research
›Great pricing comes from deeply understanding
your customers.
Pricing Questions to Use:
›“At what monthly price point does ACME start to
become expensive, but you’d still consider
purchasing it?”
›“At what monthly price point does ACME start to
become a really good deal?”
›“At what monthly price point does ACME start to
become so cheap that you’d question the quality
of it?”
Charge more for software!
Resources to Check Out
›SaaStr.com
›PricingIntelligently.com
›http://christophjanz.blogspot.com
›http://thomascarney.org
Thanks!

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