XaaS Pricing updates by key area
- Changes are occurring across packaging models.
- Add-ons are a primary focus; add-ons are being launched, updated and expanded to other tiers and editions.
- Other companies, such as CRM provider vtiger and conferencing platform Airmeet, are consolidating functionalities into a single product suite. These companies previously sold multiple products in different modules but have recently consolidated the offerings into a single platform with different user types.
- Another common strategy is to remove an underperforming plan or adjust the entitlements or branding of a particular plan to optimize customer targeting.
- Minimal changes are being made to pricing models.
- Any pricing model changes are occurring in concert with a larger change, such as a new product rollout or comprehensive update to packaging.
- A pricing model update is inherently disruptive to existing customers; given the current environment, churn-conscious XaaS companies are unlikely to make major changes to pricing models for their offerings.
Pricing and discounting
- Overall, the market trend currently is to increase prices, typically by 5% to 10%.
- Notable examples include Slack and Klaviyo.
- However, depending on target customer profile and category, some vendors are also reducing prices by the same order of magnitude.
- Pricing adjustments will remain an area of primary focus for XaaS vendors that are adapting to the current macro environment.