NEWS &
ANALYTICS

Diving into the research to look at whether generative AI is the next hype wave, or a secular and disruptive trend

In this month’s report, we look at 4 noteworthy SaaS pricing topics that stood out in our research in the last month

You’re in the market with a product and customers, already running hard, and now wondering, “Where do we start with pricing?”

Frameworks, data and recommendations on how to explore ACV trends for your business in a methodical, research-driven manner, and extract actionable insights you can use for pricing and go-to-market strategy

In this month’s report, we look at SaaS pricing predictions in price increases, inflation and evolving pricing infrastructure

Monetization is a key foundation of a PLG strategy, so we believe there are learnings on established and emerging best practices in PLG monetization that we can uncover from analyzing these companies and apply to SaaS more broadly

It can be hard to stop and really define what is product-led growth or what is a pricing model versus a pricing strategy — this is where analytical frameworks become really important

Learn more about the 3 types of volume pricing approaches that a SaaS company can use: cumulative, single-level and package/block

Learn how to take value and translate that understanding of value into a determined price for your SaaS product.

In our 3Q22 report we deep dive into the 3 interrelated trends that will shape the next era of ‘as a Service’.

The 3 types of SaaS value metrics, and the prevalence of outcome-based packaging and pricing models in SaaS

There is a myriad of articles out there about how to design pricing around a value metric, and for good reason — it is a critical concept in SaaS pricing

Learn more about the five SaaS pricing tactics we’re seeing mentioned in-depth across Twitter, including how to successfully use these tactics

Willingness to pay is often cited as the predominant framework used to set pricing for your SaaS — and more broadly, XaaS — products

Before you can say which SaaS pricing model is the weirdest, you must first define “weird”

Introducing XaaS Pricing 1.0

XaaS Pricing 1.0 is now generally available to founders, competitive intelligence teams and pricing strategists seeking to make better, faster pricing decisions through data

In this month’s report, we look at five major types of packaging model changes SaaS vendors are consistently making.

A specific, real-world competitive product comparison and normalization exercise using our product normalization model

Looking for pricing feedback on your product or a competitor’s, for your SaaS pricing strategy? Try social listening.

While important, normalizing for pricing model differences is only half of the equation — you also need to consider normalizing the product comparisons you are making.

In this month’s report, we look at how XaaS companies are adapting to the threat of recession and aligning pricing and packaging strategies accordingly.

By assessing changes in pricing and positioning over time, you can diagnose how the company’s value proposition has evolved and how the company has aimed to articulate and capture that value through its pricing.

GitLab’s Open Strategy model makes it hard to beat the company as a case study for learning about pricing strategy.

“Good-better-best” refers to a tiered packaging model for a product or service, in which each successive tier provides additional access to features and/or usage beyond the preceding tier.

SaaS pricing transparency (and lack thereof) is quite possibly the most popular internet topic on SaaS pricing.

If you’re an established SaaS vendor, even if you’re committed to executing a purely value-based pricing strategy, your market category and competitors are going to come into play and warrant analysis for various reasons.

XaaS Pricing Quarterly Trends Report 2Q22

This quarter’s report focuses on the technology industry’s evolution to ‘as a Service,’ profiling developments in key segments.

Appointment scheduling software can address a wide range of use cases and audiences, and often integrate with calendar platforms.

When we’re breaking down a category or company, we’re taking a broader purview that spans pricing presentation, acquisition vehicles, packaging, pricing models, and finally, pricing and discounting

Expanding on the findings from the PLG Pricing Analysis and providing recommendations on which PLG pricing models are best for different types of SaaS companies

Value: The often talked about, but not deeply understood, centrifuge of SaaS pricing strategy

Companies in the IaaS and PaaS markets will continue to set the course for how the entire tech ecosystem thinks about evolving to “as a Service” models.

Regardless of the marketing approach, your competition exists, is growing rapidly, and is likely becoming an increasing focus across key parts of your organization.

Behind the buzz of PLG is a real and sustainable movement that aims to redefine best-in-class SaaS go-to-market and product strategy.

From our lens, the high-level categories comprising the “pricing strategy and execution stack” for “as a Service” vendors include pricing strategy, pricing benchmarking and research, pricing management, pricing execution, and pricing analytics and optimization.

Using what we learned from the RPA versus CRM experiment, as well as our decades of experience in researching and advising on pricing strategies, we’ve translated our findings into a framework to help focus your competitive price benchmarking efforts to the likely priorities given your business state and the realities of your category.

Even if the ultimate goal of a project is to design and implement a value-based pricing study aligned to customer willingness to pay, rather focused on competitors, projects usually begin with a baseline assessment of the pricing and packaging strategies and positions of key competitors and/or adjacent industry players.

In this month’s report, we deep dive into one of the most important elements of XaaS pricing strategy: How often should you revisit pricing?

We take a look at our database, which comprises pricing multiple data on over 1,000 products across 300-plus vendors, to see if our data bears out the efficacy of the 1x, 2.2x, 5x rule.

Analyzing pricing models is often a good first step in analyzing value metrics for SaaS offerings.

Lifetime deals, particularly if they are run through a distribution-boosting marketplace like AppSumo, can help elevate brand recognition, spike sign-ups, and provide an injection of cash to fund other startup efforts.

In the roughly five months since our initial collection, 70 of the approximately 320 companies in the database have made changes to their packaging models, pricing models, and/or price and discounting levels.

Competitive comparisons serve vendors seeking to learn from the best practices and trappings of their peers, as well as buyers seeking to make the most appropriate software selection decisions.

Whether someone is signing up for your product (freemium version, free trial or paid plan), engaging in a demo, downloading an asset or contacting your sales organization for more information, your pricing page is the place where customers are digitally convinced to shift themselves into your marketing and sales pipeline.

Whether someone is signing up for your product (freemium version, free trial or paid plan), engaging in a demo, downloading an asset or contacting your sales organization for more information, your pricing page is the place where customers are digitally convinced to shift themselves into your marketing and sales pipeline.

If you’re a founder, solo product marketer, and/or a specialized competitive or pricing professional on a small product marketing team, we feel your pain. You are short on resources and time. Large primary research studies are great, but they carry costs and effort levels that you just can’t dedicate to them. You need to make quick strategy decisions using as much data as can be reasonably collected and be willing to implement, iterate, succeed, fail and start all over again.

Our top 10 tips that all SaaS vendors, regardless of size and/or category, can consider implementing to optimize their SaaS pricing pages for conversion

Breaking down the prevailing SaaS pricing models used in the market today, and exploring what most analysts get wrong about them

While a value-based pricing strategy remains the best way to build a future-proof pricing program that supports financial goals, competitor research remains just as important to the overall strategy.

Value-based pricing strategies are undeniably successful and the appropriate path forward for most SaaS vendors. However, there’s a fundamental challenge for startup founders specifically: Value-based pricing strategy design requires a lot of data and research, which is cost prohibitive and time consuming for most early-stage companies.

To craft a representative comparison for SaaS pricing, you must consider differences in price points, pricing models, deal volume, packaging, tiering strategy, usage conditions, discounts, customer relationship and competitive bidding situations, among a multitude of other factors

For our purposes, usage-based pricing is a model in which customers pay for what they actually use or consume. Pricing is tied to a defined and clear usage metric, and customers are billed in arrears (usually monthly) for what they actually use.

XaaS Pricing Quarterly Trends Report 1Q22

Simplicity wins over most things when building an XaaS pricing model and strategy. Customers care about a problem that needs solving and the dollars they will have to spend to solve that problem. The easier it is to make that connection (and prove the value for cost), the easier the conversion.

XaaS Pricing Monthly Pulse March 2022

Discounts are a well-known but controversial topic for XaaS vendors; they are an expected element of pricing and negotiation, but are known to have a detrimental impact on key SaaS financial metrics

Trends toward free tiers, usage-driven models and pricing transparency disrupt all foundational aspects of the SaaS pricing strategy. A pricing page with quantitative pricing details in some form is best practice. Most firms do not highlight editions, but nearly all use forms, interactive content, and other anti-scraping measures to make competitive consumption of their list pricing more difficult.