BY SaaS Growth Infrastructure
Case #001
Complex Pricing & Usage-Based Pricing
You know that your simple per-seat plan doesn’t cut it anymore...
Your current customers are fairly loyal and love your product, but lately have been asking about different pricing setups beyond what you currently offer. In short, you’re getting indications that there may be risk of losing out on some important deals.
Your customers would rather pay only for the reports they use, rather than a fixed amount. And they’re happy to pay a higher fee for each admin seat, but they keep adding more and more stakeholders who want to have visibility and can’t be paying full price for each of them. And many of your customers have no interest at all in your messaging feature, so it should be an optional add-on rather than a premium feature.
Your sales team is also hearing from prospects and leads that competitors are offering more tailored pricing and are asking you to match that. You can’t keep giving out crazy discounts forever to avoid demands for custom pricing, and don’t want to create a perfect storm for churn later on either. So it’s time to change your pricing model and add more nuanced levers.
As an added bonus, you’ve heard from basically everyone that adding this pricing flexibility will probably only lead to more revenue and unlock new market segments.
But introducing more optionality in pricing is easier said than done. Should you build something in-house on top of Stripe billing? Should you use a well established subscription management product like Chargebee? Buy a standalone usage-based billing tool?
These are all viable options – but they don’t solve the problem from start to finish, and will still require your engineers to work on this for the whole next quarter.
In ConcluSION:
You’ll need a solution that works
from the point where sales is building custom plans to ship to specific customers to
billing the correctly for every seat and unit they consumed. And a solution that does not require additional
engineering effort on your end.