I’d never really thought about pricing anything until I joined an online labor auctioning website called TaskRabbit. Essentially, it’s a marketplace for people to post all types of odd jobs and errands they'd like to get done. Tasks vary significantly in terms of skill, ranging anywhere from laundry, leaf raking, and walking dogs, to furniture assembly, babysitting, cooking...you get the picture. Some people take it to the extreme, enlisting taskrabbits to write their thank you notes or exchange belongings following a breakup. There really is no such thing as a bad ‘task’ as long as someone is willing to do it.
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In a way though, TaskRabbit seems like the ideal entrepreneurial setup for those doing the tasks; you set your own schedule, explicitly state what you’re good at, and pick your own prices. Having never set prices for anything before, I was excited to challenge myself to think in terms of how much I valued my time and skillset. However, you’ll soon find out I had a rough time pricing my services in the beginning.
Pricing in a Blind Auction:
At first I approached bidding from a competitor based pricing angle - I researched how much others in the industry were charging for similar services, and priced a bit lower to compensate for my lack of insurance or expertise. Since the tasks ranged significantly across the board, I tried to align my pricing with the amount of effort each errand called for. Time spent cleaning a home could not be priced the same as time spent moving a one bedroom apartment from Cambridge to Brookline, for example. However, I found myself having a difficult time sticking to the prices I set for myself, and in an effort to secure more work, would continually accept bids to do tasks for less money.
Interestingly, as I continued to accept offers to work for less, my valuation of my own time and labor began to get skewed. It also became increasingly difficult to rationalize raising the price back up to a reasonable rate, and I began to get discouraged with what was originally a fun way to do new things, meet people, and make some extra money.
I even experimented with an option that allowed me to simply confirm the fixed price posted by the website, which just made matters worse. By completely taking myself out of the pricing process, I was allowing a stranger to assign value to my skillset and time without having ever experienced it. I started to lose sight of the value of my service, and it left me feeling taken advantage of.
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My Pricing Strategy Needed a Tune-Up
I decided to take a step back and see what I could do differently to make more money. First of all, without having a physical product to sell, such as in retail, it didn’t make sense to base my strategy solely on those of my competitors or internal costs of production. In fact, I needed to choose a proper exchange rate for my time, skill, and labor, which meant I had to factor intangible assets into my pricing consideration or risk allowing the market to commodify my unique contribution.
So what is an intangible asset? Intangible assets are assets that have no physical representation, but add significant product value. Generally, this includes intellectual property, brand recognition, copyrights, forecasts, etc., but the skills and abilities an individual brings to a company (or a TaskRabbit auction) are also intangible assets. They’re often the reason one business has a competitive advantage over another. Competitor and cost plus pricing strategies are easier to comprehend and apply because they’re fairly straightforward, but by not attempting to harness the value of the intangible aspects, you’re missing out on an opportunity for profit.
Uncovering the Willingness to Pay of the Taskposters
If I could determine the customers’ willingness to pay for my service, I’d be able to translate the abstract concept of value into a quantifiable price band. Fortunately, the nice folks at Price Intelligently used their value-based pricing tools to query 50 respondents regarding how much they would pay for an hour of housekeeping. At the time, I was only charging $15/hour for housekeeping tasks (most other taskrabbits were charging as much as $30/hour), but perhaps some hard data would prove my fear of losing bids due to higher prices was relatively baseless.
We ran two studies - one to measure price sensitivity, and the other to determine feature value preference. The latter was designed to help assess which aspects of a housekeeping errand customers valued the most, such as efficiency, punctuality, ability to refrain from breaking stuff, etc. All of the participants in the study had a home or apartment that required cleaning, were looking to hire someone to clean, and were familiar with TaskRabbit. The results can be seen below:
The outcome was pretty eye-opening. The price sensitivity campaign revealed the optimal price band for an hour of cleaning was $20.62-24.50, which clearly indicated people were willing to pay a lot more than what I was charging. The indifference price point, or the point at which an equal number of respondents believe a product/service is expensive as believe it is inexpensive, was $23.15. I could easily see how low I was pricing my housekeeping services, as this median price point was 8 bucks more than my hourly fee (check out this post for a deeper look at the mechanics of a pricing study).
The feature value campaign ensured I knew which facets of a housekeeping job, tangible or intangible, were most important to task posters. The features we studied ranked from most important to least important as follows: 1) efficiency, 2) task thoroughness, 3) respecting privacy, 4) arriving on time, 5) not breaking any property, 6) attentiveness to needs, and 7) flexibility. The results of this campaign weren’t quite as surprising, but by looking at the visual output below I was able to confirm that task posters who wanted some cleaning done overwhelmingly preferred a housekeeper that did a quick and meticulous job (although I’m sure nobody wants a taskrabbit to break their valuables).
Lessons from my first experience pricing, well, anything.
I already had a hunch that I was devaluing my own labor and allowing people to tell me what my time was worth, but the pricing study proved I wasn’t being fair to myself. Ironically, it was my own flexibility with pricing that was devaluing my labor, and setting unreasonably low prices may have even unintentionally communicated a lower quality. As you probably already guessed, I decided to raise my TaskRabbit rates, but here are three lessons anyone can take away from this experience:
1. Communicate your value and don’t be afraid to implement profitable prices.
If you believe in your skills and services, then it’s crucial to become your strongest advocate and learn to communicate your value with a fair price. Although it can be tempting to lower prices to gain market share, you risk unintentionally communicating lower quality by pricing you services well below market value. Neither the buyer nor the seller wins, and the market enters a downward spiral, with buyers paying and receiving less and sellers earning and giving less.
2. Using price as a competitive weapon won’t necessarily get you more business.
Undercutting your competitors on price may program customers to focus only on your price and disregard the value you bring to them. Whether it comes to skilled services or software, the additional value of assets like time, labor, and customer service are true profit drivers, and a more creative pricing strategy is called for. There is no silver bullet or perfect price, but approaching the pricing process with an agile, multi-priced mindset driven by data and value is a great start. This brings me to my last point.
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3. Different strokes for different folks
My introduction to the optimal price band showed me different customers will pay different prices for the exact same product or service, and some may be willing to pay more based on their perceived valuations. While that may seem obvious, it’s critical to understand each type of potential buyer if you want to capitalize on different valuations with your pricing strategy. The more you know about your customers’ preferences, interests, and quirks, the easier it will be to align each of them with the right service at a price that works for both of you, whether you offer a software product or you’re cleaning out someone’s garage.
To learn more about pricing specifics, check out our Pricing Strategy ebook, our Pricing Page Bootcamp, or learn more about our price optimization software. We're here to help!
How did your business decide on your product’s current prices? Hopefully it wasn’t like most SaaS companies, where the founder simply plucks price points out of thin air, guided by nothing more than his or her gut feeling.
Think that’s too crazy to be true? Well it isn’t. We surveyed over 270 SaaS businesses and found that nearly half of them priced solely based on their founder’s intuition. Contrast that with the embarrassingly low 17% of companies that defined their pricing strategy as a team, and you quickly realize that there is a major problem.
Your pricing strategy, which includes your positioning, packaging, and price points, represents the total value your product delivers and encompasses all aspects of your business, from engineering and marketing to sales and customer support. Therefore, your pricing decisions should be made collectively by all of the key stakeholders in each of the different areas of your business, not just by your founder or marketing department. Here’s the case for why all the different parts of your company should get involved in developing your pricing strategy.
Sales and your pricing strategy are inherently linked, yet only 3% of SaaS companies we studied involved the sales team in pricing decisions. Your sales reps are on the frontlines interacting with your customers and prospects on a daily basis, so their insight into customer value perceptions is essential to a comprehensive pricing strategy. Turning it around, they’re also responsible for communicating your product’s value and justifying your prices to potential customers, which means that they need to understand the logic behind the pricing decisions to be more effective at their jobs (click here for more on the intrinsic relationship between your sales team and proper pricing).
Your sales team should also be familiar with your pricing strategy to create accurate sales forecasts, which in turn drives the rest of your business’ financial forecasts because most companies project their expenses as a percentage of sales. From a broader company perspective, this means excluding your sales team from your pricing strategy discussions could derail the rest of your company’s finances for the year. Pricing is then clearly an integral part of the sales process, which means that sales should be an integral part of your pricing process.
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Only 1 out of 10 SaaS companies determine their prices with help from the marketing squad, which is an alarmingly low ratio. An essential part of marketing is understanding your customers, which makes this department an incredibly valuable asset to your pricing process. Your pricing strategy should rely heavily on the features and price points that are most attractive to your customers, which obviously requires your marketing team’s thorough understanding of your buyer persona profiles.
On the flipside, your marketing team is also responsible for communicating and demonstrating the value in your product to your target market. They need to participate in pricing strategy discussions so they can establish a strong awareness of where the true value lies in your product and use that understanding to strengthen your positioning and packaging strategy.
Your product team built your product from the ground up, which means that they probably possess the deepest understanding of your product’s features and limitations. Engineering needs to be included in your pricing process so that your team doesn’t position your product in a way that overpromises on it’s capabilities or undersells its features. Their input is also critical when deciding whether or not to offer a custom plan as their bandwidth is the most important factor in that decision.
From a broader perspective, your product team has poured their blood, sweat, and tears into building your product, so including them in your pricing discussions will ensure the rest of your team puts forth their best effort in the process. This is especially critical when you consider that most teams only spend 6 hours pricing a product that your engineering team spent hundreds of hours building.
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Management’s ultimate responsibility in a company is to serve the various stakeholders involved with the business, which means it would be irresponsible for management to divorce themselves from the pricing decisions that are so critical to a company’s ultimate success. This is especially important because Harvard Business School studies have demonstrated a 1% improvement in pricing can generate up to an 11% increase in profits. Not to sound like a broken record, but pricing is the culmination of all the individual facets of your business, so the top executives responsible for coordinating the different branches of your company should also be involved in the pricing process.
Include more people in the pricing process!
You should be collecting input from all of the departments in your business, as well as your customers, to determine your optimal price points, packaging, and positioning. With something as important as pricing, you really can’t afford to delegate the responsibility to just one person, especially a founder who, without a background in pricing strategy or market research, prices based on a gut feeling or a haphazard guess at value.
As we mentioned in the beginning of this post, barely 1 out of 5 companies use teams to price their product, which means you’ll have a leg up over 80% of your competition if you take the simple step of expanding your pricing team.
If you enjoyed the data we presented in this post and are interested in seeing more, be sure to check out our latest eBook, the SaaS Pricing Page Blueprint, which offers in depth data and analysis on building the optimal pricing page.
Since CEO Jeff Bezos’s 60 minutes showcase of Amazon’s unmanned drone delivery service, many have written the interview off as just another PR stunt to boost holiday sales. Considering the technology is estimated to be over a decade away, the doubters are most likely correct. When digging deeper though, Bezos’s latest octocopter obsession illuminates Amazon’s purpose perfectly, becoming the largest retailer on the planet (and not just online).
Unfortunately, these droning delivery men also reveal what Amazon believes to be their core hurdle in achieving this goal: competing with local brick and mortar retailers who also sell 95% of Amazon’s products. To combat this, Amazon has spent billions of dollars building Amazon Prime (guaranteed 2-Day delivery), purchased numerous urban locker shipping companies to circumvent the “I wasn’t home for my package” problem, and even brokered a deal with the US Postal Service to begin delivery on Sundays.
This intense focus and spending begs the question though: Do Amazon shoppers truly value and care about receiving their items almost immediately?
To shed some light on this question, we at Price Intelligently decided to test if drastically decreasing the time of delivery impacted willingness to pay, a true proxy for how customers value different levels of delivery times. Let’s quickly look at the methodology and resulting data before analyzing how those fancy octocopters go well beyond a simple PR stunt.
The Methodology to Determine Willingness to Pay
For this test we utilized our value-based pricing software that works by pinpointing willingness to pay through asking potential or current customers a number of key pricing questions. Here’s an example campaign for you to check out, along with a link to an article that explains the algorithm more in depth. To summarize though, rather than asking respondents point blank how much they’d pay for diapers delivered in 30 minutes, we ask in ranges - at what point is this too expensive, at what point is this so cheap you question the quality, etc. This data is then sanitized and crunched on the backend to get the output you see below. The big number to focus on is the Indifference Price Point, which is essentially the median point or where half the respondents believe the item is getting expensive and half believe it’s a great deal.
In addition, we decided to differentiate between products that customers potentially need right away and products that typically don’t instill such a sense of urgency. In this vein, we tested two very different items that an unmanned drone could still deliver: a Macbook Air and a box of diapers. We felt most consumers could live without a new computer for a few days, but running out of diapers would most likely create a dire emergency that could warrant the need for instant home delivery.
For Diapers: Delivery Time Dramatically Affects Willingness to Pay
Some of us might be hesitant to assume parents would prefer paying significantly more for emergency air shipments of fresh diapers over stocking up at Wal Mart, but the data below proves otherwise.
The results are pretty fascinating. When respondents were asked how much they would pay for a diaper pack delivered between 7-10 days (standard ground delivery), their willingness to pay centered around $22.67. When that delivery window shrank to 30 minutes though, the willingness to pay jumped to $32.50, an increase of 43.4%.
So as a whole, our beautiful diaper data shows that Bezos might not be so nuts for pursuing such radical ways to save time. Quick delivery has always been a powerful value proposition, but as technology like these drones moves forward, it could become the ultimate differentiator between an e-commerce specialist like Amazon and a giant retail bodybuilder like Wal Mart.
For a Macbook Air: Delivery Time Impacts Willingness to Pay (Slightly)
Even more surprising though, the results for the Macbook Air study showed a similar increase in willingness to pay as delivery time decreased. Even though most of us could wait a hot minute for a new laptop, the responses for the 30 minute delivery generated an indifference price point of $1000 (retails for $999), $75.19 more than that of the 7-10 day delivery (IPP of $924.81).
Granted, that 8% difference isn’t anything to write home about, but the trend seems to hold even for premium products that aren’t required in bulk to stem a newborn baby.
Time Is of the Essence
As the results indicate, the old adage that time is money appears to still hold true. In the online retail space, Amazon’s bet of closing out the hurdles in the last mile of the purchase cycle clearly will continue to pay dividends. Interestingly enough though, in his interview, Bezos explained that all the data suggests that Amazon should raise prices as they continue to improve service, but in his belief doing so would erode the trust of his customers. This notion continues to sharpen Amazon’s edge against their brick and mortar brethren, increasing value in an already low price product.
Clearly Bezos and Amazon are in it for the long haul, which is great because we’ll probably have a long time before we see our first drone. The FAA has already come out against commercial drones until safety and logistics are hammered out in detail. We suppose that’s ok, because the last thing we need is a sky raining diapers, Macbook Airs, and whatever else Bezos’s octocopter obsession brings our way.
To learn more about pricing specifics, check out our Pricing Strategy ebook, our Pricing Page Bootcamp, or learn more about our price optimization software. We're here to help!
Your pricing page is the most important page your company will ever build. Don’t believe me? Well, consider this: every other page and almost every other activity in your company works to lead people to that page and convert them to healthy, paying customers.
To a greater extent, pricing can be thought of as the center of your business. After all, you exist to provide some nugget of value in exchange for cold, hard cash to keep your business surviving and thriving. Pricing is the exchange rate on that value, and your pricing page is the final gateway that ideally works to justify that exchange rate.
After looking at over three thousand SaaS pricing pages and writing about the best ones in our SaaS Pricing Page Pageant, we decided to double down and bring you a resource to make your pricing pages fantastic. Let’s dig into two top level findings that can help everyone before giving you access to all of the study’s insights. Don’t want to wait? Well, go ahead and download the SaaS pricing page study here:
1. Only 1 in 5 Companies Set Prices Based on Customer Value
That’s worth repeating. Only 1 in 5 companies use customer development and perceived value to set their prices, while the rest settle for prices based on a combination of guesswork, competitors’ pricing, and their costs of production.
Guess what? Your customers don’t care about your internal development costs or how much your competitors charge. Be empathetic and realize that your customers are purchasing based on their own value perceptions, which means you need to price by quantifying the value you’re providing them.
Bottom Line: Go out and talk with your customers about how much they’re willing to pay for your product. You’d be surprised how open people are when it comes to chatting about prices.
2. Two out of Three Companies DO NOT Have a Freemium Plan
This was surprising, because any Google search for “Freemium” results in hundreds of articles discussing the pros and cons of such an illusive strategy. We’ve been pretty open about our bias towards a free trial instead of a free plan (86% of companies utilized at least a free trial), mainly because a freemium offering can be a pretty hefty marketing expense .
The Bottom Line: Don’t assume you absolutely need a free plan. If you do choose to provide one (or are already providing one) be cognizant of the fact that freemium is a customer acquisition strategy, not a revenue model (click here for more on freemium vs. the free trial).
Focus on Your Pricing From a Value Based Perspective
While these findings may not be earth shattering to you, much of the other information we found concerned the actual mechanics of the pricing page. For instance, 55% of companies utilize three to four distinct pricing plans. Only 18% of companies offer an annual pricing option. 6 out of 10 companies include FAQs. The list goes on in the ebook.
While these mechanics, facts, and figures are important from a design and setup perspective, the most important factor to continually keep in mind concerns value. You need to continually measure, optimize, and boost the value your customers see in your product. They’re the ones paying you and no amount of backdoor cost analysis, revenue number crunching, or competitor research will reveal what they’re thinking, so talk to them.
To find out more, check out the whole study in the ebook below.
The most important part of running a SaaS business, besides engineering the product of course, is creating a strong revenue model that allows you to efficiently pull in cash and keep the lights on. Developing your revenue model, like pricing, should be a continual process for SaaS companies because of the often unpredictable and dynamic nature of SaaS business. We often find refreshing a stale revenue model to be the key to unlocking additional profits for companies, especially as your product improves, your customers’ needs change, and your company expands.
There can be a lot to consider when developing or revamping a revenue model, including the number of plans you will support, subscription length, and whether or not to offer custom plans or free trials. These considerations can make it challenging to determine an optimal structure, but like we always say with pricing, your decisions will be stronger when grounded in hard data. Therefore, we’ve collected data on the revenue models of over 270 different SaaS companies for you to use as a foundation for your own revenue model. Of course, keep in mind that every business and company is unique so you should treat these more as general guidelines rather than hard and fast rules.
Number of Plans to Offer
Offering multiple plans is a great way to cater to different customer perceptions of value and take advantage of a price differentiation strategy, but too many choices can appear daunting and turn potential customers away. A good rule of thumb is to have as many tiers as you do buyer personas, so that the features and price point of each tier can be tailored to one particular persona. (For more on how to do that, check out this guide to value based pricing). Our research in the SaaS market shows most companies find that offering 3-4 tiers provides the right number of options.
For subscription models, most SaaS companies offer monthly pricing plans, which are popular because the smaller numbers appear friendlier and the lack of long-term commitment reduces the pressure on potential buyers. However, providing annual subscriptions may secure you more business upfront and reduce churn, the mortal enemy of SaaS. You can compromise between the two options by offering both a monthly and annual plan, with the price of the annual plan positioned at a slight discount to the price of the monthly plan. This allows you to cater to two different types of buyers: those who are willing to pay extra for the flexibility of a monthly plan and those who love your product and would appreciate a slight discount for their loyalty in choosing the annual plan.
Your decision to offer custom plans will rely heavily on the flexibility of your software and the bandwidth of your development team. If your team has the capacity to tailor plans to specific customers, then promoting your product’s customizability can be a fantastic way to encourage high-profile clients to contact you directly if they require special feature packages to accommodate their needs. If your team doesn’t have the bandwidth to develop custom plans, don’t worry. Over 75% of the SaaS companies we analyzed choose to avoid advertising custom plans, so it’s not the end of the world if your team doesn’t have the time to retool and adapt your offerings.
86% of SaaS companies offer a free trial of their product, which makes sense given that they are one of the best ways to increase your paid user base. Free trials allow you to effectively demonstrate the value of your product, increase your customers’ willingness to pay, and force your customers to make a purchasing decision at the end of the trial. Therefore, if you’re able to demonstrate strong value in your product throughout the free trial period, customers will want to subscribe simply to avoid the feelings of loss associated with giving up your product. Free trials are also especially relevant to SaaS companies because the marginal cost of an additional software license is negligible, which makes them a fantastic and inexpensive marketing strategy with the potential for massive ROI.
As we mentioned at the beginning of this post, every company is unique and will require a different revenue model to be successful. However, the data we’ve collected provides insight into current SaaS industry trends and should provide a solid foundation for the model that best suits your business.
If you’re interested in a more personalized consultation for your company, feel free to reach out to us for a free Price Optimization Assessment. Otherwise, check out our latest eBook, the SaaS Pricing Page Blueprint, for additional data and analysis on building an optimal pricing page and revenue model.
I’m a huge fan of Will Ferrell. Go ahead and judge away, but I think he’s hilarious. In a recent Dodge Durango commercial, Ferrell plays his Anchorman character, Ron Burgundy - the leisure suit-wearing news anchor brimming with machismo and a sudden interest in hawking sport utility vehicles. Rather than taking the easy route and listing the Durango’s most popular features, Burgundy is “the only one with the guts” to highlight one of the vehicle’s overlooked features - the glove box.
photo credit: tr.robinson via Compfight
While the absurdity of showcasing the 2014 Durango’s glove box provides a golden opportunity for humor, boasting about features customers expect (or could care less about) is unfortunately all too common. From a value-based pricing perspective, missing the mark on features can have a devastating effect on your bottom line. So let’s explore the importance of having a handle on feature preferences before learning how you can actually quantify something that has traditionally been thought of as qualitative info. Yay data!
What Is “Feature/Value Preference” And Why Is It Important?
At its core, a “Feature/Value Preference” is simply a determination made by a customer about which feature is most important to her/him. The idea also applies to value propositions (high-level benefits that prompt purchasing decisions) as well. We've dished out a fair amount of criticism regarding JC Penney’s folly of eliminating percentage discounts. Their blunder is a case study in the importance of understanding the value propositions that influence your customers. In the mind of the C-level execs at JCP, the value proposition of “fair and square prices” would trump “25% off” easily. Unfortunately for JCP’s execs (and their 2012 sales projections), the value proposition of “getting a great deal at 25% off” was actually more important to their customers.
If you’re a SaaS company, it’s critical to understand the features that customers are willing to pay for since your pricing page is likely tiered based on a sliding scale running from basic attributes to premium components. Analyzing the features that motivate your customers to buy helps you establish how you package and bundle each pricing tier accordingly. You also don’t have to be a pricing nerd to know that listing out every feature on your pricing page isn’t very practical. For one thing, the “shotgun approach” can intimidate and overwhelm prospective customers in the sales process. Highlighting your most popular features, however, can alleviate this frustration and give you the opportunity to display the very best aspects of your product (for more on pricing page best practices, have a look at our SaaS Pricing Page Pageant).
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Additionally, asking customers for their input can do more than just help you identify important features and display them effectively. Current customers often remark that being a part of the process helps them feel included and important. In short, their opinion matters and taking the time to communicate this idea not only helps you create a better pricing page, but also strengthens the tie between you and your customers.
Which Features and Value Propositions Should Take the Spotlight?
There are several ways to measure customer preferences about existing features with some being exponentially more effective than others:
1. Ask Yourself (AKA Guessing)
Bad idea. Gut feelings are important, but staking the success of a new product or service simply on intuition is reckless at best, and plain stupid at worst. We get it, there may not be a lot of market research out there, especially if you’re a first mover in the industry, but there are better ways to gauge consumer sentiments (don’t worry, we’ll be sure to cover a really effective one at the end of this section).
2. Ask the Developer
This makes sense, but be careful. Although it seems logical to rely on the person or team who created the product for their input, the feature preferences of the developer can either be too broad or too narrow. For one thing, they likely spent a lot of time (as well as blood, sweat, and tears) creating the product, so it could be difficult to detach themselves and objectively pick a handful of the most important features. Moreover, features that are paramount to the developer might not be important at all to the end user.
3. Ask the Customer
Getting warmer. The beauty of going “straight to the horses mouth” for feature/value preferences is that it ensures the feedback is at least coming from the correct perspective. Unfortunately, the methods used to collect this data can dramatically influence the results. Asking respondents to “check all the features that are important to you” can generate bias since respondents can easily be swayed by the concept that “more is better.” So, it’s not only about who you ask the question, but how you ask it. The graph below shows what happens when you present customers with the opportunity to have it all.
4. Ask the Customer 2.0 - The Price Intelligently Method
Bingo. Rather than a “rank order” or “check a bunch of boxes” approach, forcing respondents to simply choose a favorite feature and least favorite feature gives you a better opportunity to hone in on the aspects of your offering that are most attractive to customers. Take a look at the next graph below. From here, you can see what customers actually care about because they've been allowed to make tradeoffs.
SHAMELESS PLUG ALERT: Lucky for you, we have already done the legwork with experimental survey design and coding to create an app that allows you to test Feature Value Preference effortlessly. The app’s algorithm even generates a beautiful display of the data so you can impress your boss with your value-based pricing prowess. Click here to learn more and start a 30-day free trial!
A Few Final Thoughts
Collecting data surrounding your product’s features and analyzing it thoroughly does take work, but it’s necessary labor if you hope to craft an effective pricing strategy for your business. Before you even think about the numbers you put on your pricing page, taking the time to explore the language that surrounds those numbers guarantees that you are communicating the value of your product in the clearest way possible.
If you want to learn more about the tenets of value-based pricing, take a look at this post on the importance of price sensitivity and how you can measure your customers’ willingness-to-pay with a scientifically-proven methodology.
Ready to put your newfound knowledge to work? Check out the 30-day free trial of our software that will help you determine the features and value propositions your customers care about most. Also, check out our pricing strategy ebook.
Please note: This post summarizes our three part series on critical SaaS metrics and their relationship to your pricing strategy. If you’re new to the series, have a look at the first post on Customer Acquisition Cost, the second post on Eliminating Churn, or the third post on Refining Monetization.
For a SaaS or recurring revenue business, there are a few essential metrics to track if you want to optimize your business for profits and growth. As we found out in the last three posts of this series (see the above note for links), revenue in SaaS is received in smaller increments over a longer period of time, which means customer retention is critical to recovering acquisition costs and monetizing customers effectively. If enough customers are dissatisfied with your product and churn out to look for something else, you’ll lose the money you invested to onboard those customers and the opportunity to generate the cash flow you need to keep your business afloat.
As a result, the metrics that are important to a SaaS business have everything to do with customer lifetime value and the stages of the customer lifecycle. That outcome might seem obvious, but actually finding ways to achieve sweet results when you calculate the metrics surrounding customer acquisition, churn, and recurring revenue is a bit more complicated.
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Success will come easier if you ensure that your products and pricing are aligned with the value and usage your potential customers seek. This requires a lot of research and data harvesting, but incorporating customer value perceptions and price sensitivity into your pricing process can help mitigate the symptoms of the SaaS realm’s most common ailments. As such, let’s briefly review the metrics that are critical to the SaaS space, why they’re important, and how to generate better results with value based pricing, positioning, and packaging.
Customer Acquisition Cost (CAC)
Examining just how many months of revenue from a customer are actually needed to recover the cost of acquisition becomes essential as your business grows, as it may take much longer than you think for your company to recover CAC and actually begin to profit. The key to reducing that timespan is developing a business model that enables you to make more money from your customers than it costs to bring them into the fold, which is easier said than done.
To calculate your customer acquisition cost, you take the sum of all your sales and marketing expenses over a given duration (including human capital costs) and divide it by the number of customers acquired in the same time period. This formula can also be used to assess the effectiveness of specific acquisition methods or new marketing channels, so it’s crucial when you want to test out different growth strategies. According to David Skok in his comprehensive article on SaaS metrics, ideally you should be able to recover the cost of customer acquisition within 12 months.
Achieving this goal can be fairly difficult, but quantifying your customer personas and optimizing the sales funnel will make it easier to turn prospects into paying customers that contribute to your cash flow. We emphasize the importance of positioning almost every week, but it’s only because knowing your customers is essential if you want your SaaS company to survive. Uncover what motivates your customers to buy, their willingness to pay, and the features they value most if you want to decrease the length of the sales cycle and reduce your CAC. Catering the funnel to your ideal prospects is critical, so if you experiment with new sales methods and automation, make sure everything still works to convert the right buyers.
Speaking of moving the right customers through the funnel, let’s discuss what happens when those customers don’t see the value in your product. Customers who churn out potentially waste all the money you spend on customer acquisition, so it’s important to go after the right clients if you want to see a full return on your investment and generate the recurring revenue needed to become profitable. When customers aren’t a great fit and abandon ship, you obviously won’t see the cash flow you need to run a successful SaaS business.
Many companies choose to focus only on their churn rates, but it’s just as critical to determine the profitability of each customer segment through each cohort’s lifetime value (LTV). As we mentioned in the second post of this series (all about churn), LTV and its relationship to CAC are leading indicators of business efficiency, but calculating LTV can get more complicated if you need to account for expansion revenue and changes in the average revenue per account (ARPA). You can find a list of vital LTV formulas in David Skok’s supplement to his SaaS Metrics 2.0 post, but a good rule to follow is the customer LTV should be at least three times the cost of acquisition.
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Perhaps it’s too early for your business to collect and calculate LTV data, but churn factors heavily into any lifetime value equation. If your business is in a nascent stage of development, it’s still important to find ways to reduce churn so you can ensure you’re ready for growth.
Aligning the prices customers pay with the value they place in your product is an essential part of value based pricing that can increase customer retention. Pricing along a value metric and assigning each of your customer personas to specific product tiers will enable you to justify the value received at a particular price, and it will also ensure you can upsell customers to premium products and plan upgrades as their own businesses grow. In addition, collecting price sensitivity data will potentially help you determine more profitable prices or whether your product needs further refinement to increase the customer’s loyalty and willingness to pay.
Aligning your positioning, packaging, and pricing with your target customers is not only important for reducing CAC and churn, it’s also the key to monetizing customers and generating more monthly cash flow. Simply put, better pricing based on customer value is one of the best ways to boost your monthly recurring revenue (MRR) so you can profit and prepare for the road ahead.
Wistia's pricing page. Simply scrumptious.
To calculate your MRR, you multiply the total number of paying customers by the average amount they pay you every month, otherwise known as the average revenue per account (ARPA). As mentioned in the beginning of this post, MRR is an essential metric to track because SaaS is a business where revenue is usually received through recurring subscriptions.
A proper pricing process will help you convert more potential customers into paying ones, increase upsell opportunities, and ultimately increase your MRR. We’ve already discussed the importance of acquiring the right customers and pricing along a value metric so they see the value in what they’re purchasing, but having an attractive product mix will help you take full advantage of scalable pricing so you can appeal to both high profile clients and price sensitive ones.
In addition, you can use price sensitivity data to determine if your prices are justified by your offerings. Once you collect this valuable input from your customers, you may discover prices are too low and that you can raise prices without significantly increasing your churn rate. As anyone who’s ever read our blog before knows, a 1% improvement in price optimization results in an average boost of 11.1% in profits, and that’s no small boost when it comes to your recurring revenue.
This concludes our first series on SaaS metrics and your pricing strategy. To learn more about pricing specifics, check out our Pricing Strategy ebook, our Pricing Page Bootcamp, or learn more about our price optimization software. We're here to help!
Part of my job here at Price Intelligently is to chat with companies about improving their pricing strategies (sign up here if you ever want to chat). During these conversations, I’m always curious about the process that companies go through to determine their prices. Astoundingly, most of the CEOs I talk to say they simply pulled their price points out of thin air without doing any market or customer research.
Pricing is too important to be relegated to an afterthought, especially when you consider the fact that Harvard Business School researchers have shown that a 1% improvement in your pricing can generate up to an 11% increase in your profits (click here for the original study). This makes it the single-most powerful profit lever you can control. More importantly though, pricing is the culmination of all of the value you’ve created in your business through your product, marketing, sales, and customer service efforts. You absolutely cannot afford to shortchange yourself and your product by choosing price points supported by nothing more than a gut feeling.
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That’s great and all, but what should you do to take advantage of pricing? Well, the short answer is - you need to understand your customer’s price sensitivity. Let’s discuss the concept and then offer you two methods you can utilize to understand your product’s specific price sensitivity.
What Is Price Sensitivity & Why Is It Important?
Essentially, price sensitivity is a measure of the impact of price points on consumer purchasing behaviors, or in other words, it’s the percentage of sales you will lose or gain at any particular price point. This means a thorough understanding of your product’s price sensitivity will help you uncover your revenue maximizing price band as well as the impact of pricing changes on your sales numbers.
Your product’s price sensitivity will also help you determine the amount of value you’re creating in your product by revealing your customer’s willingness to pay. It translates value from an ambiguous buzzword into a quantifiable metric that you can optimize for and improve. Without an understanding of the price sensitivity of your product, you have no way of knowing whether or not your product development efforts are yielding an augmented product value (i.e. if customers are really interested in the features you’re creating).
Keep in mind though, despite what many people think your product’s price sensitivity is not a synonym for your pricing strategy. Like a three-legged stool, your pricing strategy needs strong support from positioning, packaging, and pricing to be effective, so be sure to focus on all of those facets equally when developing your pricing strategy.
How Do You Measure Your Price Sensitivity?
The key to success when measuring price sensitivity is to have a deep understanding of your target market and buyer personas. Each of your buyer personas will perceive the value of your product differently, which means each cohort will have a different price sensitivity. As a result, you need to measure the price sensitivity of each of your market segments independently so the data you collect will be representative of the nuances of your market, instead of a non-representative average of all market segments.
Once you’ve segmented your target market, the next step is to pick a methodology that goes beyond simply asking people “What would you pay for product X”. Cognitively, it’s near impossible for people to accurately gauge their own willingness to pay, which is why researchers have invented techniques to circumvent this mental block. Two of the most popular techniques for measuring price sensitivity are price laddering and the Van Westendorp Price Sensitivity meter.
1. Price Laddering
Price Laddering involves asking potential customers about their intent to purchase a particular product at a particular price, usually ranked on a scale of 1 to 10. If the respondent’s intent to purchase response is below a particular threshold (usually 8), then the price is lowered and the respondent is asked about their intent to purchase again. This process can theoretically be continued indefinitely, but generally respondents are only asked about a maximum of three price points to avoid excessive response bias. The results are then analyzed to determine the percentage of the market that would purchase at any given price.
The beauty of Price Laddering lies in the fact that survey respondents don’t need to propose any price points. Instead, they simply need to match their intent to a sliding scale, which makes the survey simple to complete.
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Unfortunately, the simplicity of price laddering can also be its downfall, because respondents are asked about their purchase intentions at successively lower price points. It’s easy for them to treat the survey as a negotiation, which will bias your data. Using price laddering also means that not all respondents will add insight to your pricing research efforts because some may refuse to purchase at any of the price points you offer. In sum, these drawbacks imply that an effective and statistically significant price laddering campaign usually requires a large number of survey respondents, which presents a major challenge to many companies without the luxury of a substantial customer base.
2. Van Westendorp's Price Sensitivity Meter
Van Westendorp’s Price Sensitivity Meter tackles the problem of measuring price sensitivity by surveying people about their willingness to pay in ranges. Each respondent in the survey is asked four questions:
1. At what price would you consider the product to be so expensive that you would not consider buying it? (Too expensive)
2. At what price would you consider the product to be priced so low that you would feel the quality couldn’t be very good? (Too cheap)
3. At what price would you consider the product starting to get expensive, so that it is not out of the question, but you would have to give some thought to buying it? (Expensive/High Side)
4. At what price would you consider the product to be a bargain—a great buy for the money? (Cheap/Good Value)
The first two questions force respondents to anchor themselves to an acceptable price range and the last two questions help narrow the optimal price band. Once a statistically significant number of people respond to these questions, you can graph the responses and determine an optimal price band and a more specific optimal price point.
Van Westendorp offers a distinct advantage in efficiency when determining price sensitivity for relatively new products. Each respondent in a Van Westendorp survey will provide additional insight into your product’s price sensitivity, which accelerates your data collection process by reducing the required number of survey respondents. The price sensitivity meter is also the only method that figures in price points that are cheap to the point where customers begin to question the product’s quality. This makes results obtained from Van Westendorp much more thorough than the results obtained from price laddering.
The downside to Van Westendorp is that it can sometimes be confusing for companies to run and analyze. This is why we’ve built our software to streamline the process. We’ve added our own algorithms to the original process to improve on VW’s original method, automated the analysis, and are offering you a 30-day free trial to help you determine your own price sensitivity (shameless plug :)).
Remember, Pricing Is a Process
No matter your methodology, keep in mind that there is no silver bullet to determining price sensitivity. The data you cull is inherently based off people’s perceptions of value, which can vary dramatically from person to person and cohort to cohort. Instead, pricing research is a process of elimination. It’s all about hedging against the unknown to shed more light on your product’s true value.
Keep in mind that your learning and readings are only as valuable as their implementation. This is why pricing is a process, and should be treated as such.
If you’re ready to put your newfound knowledge to work, check out the 30-day free trial of our software that will help you determine your product’s price sensitivity. Also, take a look at our pricing strategy ebook.
Please note: This is the third post of a three part series that focuses on how your SaaS metrics tie into onboarding customers, company growth, and generating the recurring revenue needed to not only stay afloat, but thrive in the booming SaaS industry. If you’re new to the series, have a look at the first post on Customer Acquisition Cost and the second post on Eliminating Churn.
In parts 1 and 2 of this series focused on SaaS metrics, we discussed how important monitoring your customer acquisition and retention metrics is to the health of your SaaS business. However, you may have noticed we can’t help shining a big, beautiful spotlight on the bond between improving those numbers and your pricing process. There is a delightful land in the SaaS space where customer happiness and plump profits dance together to epic slow jams, but only if you have a pricing strategy that can defend your ark as you travel churning seas of ill-fitting customers who threaten your company’s growth and profitability.
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All whimsy aside, we’ve emphasized throughout this series that ensuring your company can profit while providing enough product value to keep customers satisfied is essential if you want to prevail in this treacherous sea of SaaS. But to align your positioning, packaging, and pricing with your target customers is not only important for reducing customer acquisition cost (CAC) and churn, it’s also the key to monetizing those customers and generating the monthly cash flow needed to grow successfully. As such, let’s begin by exploring the importance of monthly recurring revenue (MRR) before we look at how a value based pricing strategy ties into improving MRR and monetizing customers more effectively.
Why Is MRR so Important?
You can boost the numbers by providing clients the option to purchase annual contracts, but let’s be clear, SaaS is generally a recurring revenue business based on smaller cash payments made in monthly increments. Calculating and studying your MRR shows you just how well your SaaS business is actually operating and may help you discover what areas need improvement before you attempt to accelerate growth.
While it’s true that the time it takes to recover your CAC and hopefully begin profiting depends on the efficiency of your sales team and how you optimize your funnel, simply increasing these monthly payments is obviously a surefire way to recover CAC faster and increase profitability. Unfortunately, very few businesses make the connection between maximizing monthly profits and leveraging their pricing strategies.
Improving your MRR stream has everything to do with better pricing, from upselling customers using add-ons and bundling to proper value metrics and customer segmentation. If your MRR isn’t enough to sustain operations or further growth, then there’s a good chance your value proposition and services aren’t aligned with customer value perception. This, in turn, makes it nearly impossible to justify prices that work for both your bottom line and your customers, but we’ll discuss how to prevent this from happening after boiling down MRR.
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How Do I Calculate MRR?
If you’re already familiar with calculating MRR, skip to the next section.
Unlike the formula for Customer Lifetime Value we introduced last week, the recipe for calculating your company’s monthly recurring revenue is fairly simple. To determine your MRR, you multiply the total number of paying customers by the average amount they pay you every month, otherwise known as the average revenue per user (ARPU). The formula is pictured below.
MRR = Total # of Paying Customers x Average Revenue Per User (ARPU)
You can see from this basic calculation that increasing your company’s average deal size is crucial to increasing your monthly revenue, but ensuring you can earn more cash from each of your customers is a lot harder than simply acknowledging more money would improve the numbers. You need to be able to monetize those customers effectively while ensuring they don’t churn out and look for other services, and one of the best ways to do this is pricing customer fit. Charging each customer segment for every unit of value they receive is one of the biggest components of a complete pricing strategy that puts value at the forefront, and most importantly, brings in more money.
How Do I Boost MRR with My Pricing?
A proper pricing process will help you convert more potential customers into paying ones, upsell customers you’ve retained as their own businesses grow, and ultimately increase MRR, so let’s look at some ways to actually implement a better pricing strategy.
Ah yes, positioning. As mentioned in our post on eliminating churn, customers churn out when they can’t find value in what they’re buying. Part of preventing this is developing the right product, but the other half of the battle is ensuring you’re working to acquire the right customers. To charge customers a profitable price that represents all of the value they’re receiving requires you to match up your customer segments to the appropriate services that relieve their pain points, so knowing your customers is essential.
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In addition, your products need to be priced along value metrics so customers who receive more value from your product are charged more for each unit of value. Customers will convert to paid tiers and upgrade to premium services if you can justify price changes from one plan to the next and convey easily how much value they’re getting for the money. You also need to make sure each tier of your product is aligned to a particular type of customer. Once you define your customer personas and align each of them with the right plan and the right features, pricing and value will work together to bring in more revenue for your business.
Speaking of plans, determining the right packaging and presentation for your services is critical to using differential pricing to your advantage. Develop premium services, bundles, and add-ons that will enable you to upsell/cross-sell customers so that you can persuade them to move into product tiers that bring in more cash every month. This falls in line with pricing along a value metric, but using the right packaging for your product is all about having an attractive product mix with scalable pricing that appeals to bigger clients who are willing to pay more to obtain more value as well as price sensitive consumers who need less of your service.
If your company offers a free plan or free trial, packaging and its relationship to pricing becomes even more crucial. Free users are pointless unless they’re eventually willing to convert, so it’s important to use a proper set of plans and continual engagement to give these customers the incentive to upgrade to paid tiers and profitable services. Uncover what features and product options your customers actually care about so you can increase their willingness to pay and factor them into your MRR.
The most important part of a value based pricing strategy is determining the price sensitivity of your target customers. You can increase the customer’s willingness to pay with a great service and superb value alignment, but understanding price sensitivity is the key to knowing which direction to go in and what needs to be redeveloped as your business moves forward.
Simply put, customer data is the best indicator of whether your pricing is justified by your offerings. You can’t raise more monthly revenue before discovering how your target segments perceive the value of what your building. Price sensitivity data also tells you if your prices may be too low, and after you cull this precious data from your customers you may find that you can raise prices on certain plans without increasing churn.
Collecting this type of data and implementing a value based pricing strategy is no small feat, but it’s impossible to pick prices that reflect the value perceptions of your consumers without actively seeking their input. Hitting the grindstone in this manner not only helps you isolate the qualities that separate your product from the copycats swarming the market, it also gives you the greatest amount of data to make an informed decision about your profit maximizing price, and that’s the clear path to the golden revenue stream of your dreams.
Stay tuned for the conclusion of this SaaS metric series, where we’ll bring all of the SaaS metrics we’ve discussed under one roof and show how the pricing process and customer value tie into improving every vital calculation.
To learn more about pricing specifics, check out our Pricing Strategy ebook, our Pricing Page Bootcamp, or learn more about our price optimization software. We're here to help!
Please note: This is the second post of a three part series that focuses on how your SaaS metrics tie into onboarding customers, company growth, and generating the recurring revenue needed to not only stay afloat, but thrive in the booming SaaS industry. Check out the first post on Customer Acquisition Cost.
In SaaS or any monthly recurring revenue business, customer retention is critical to sustaining growth and maximizing profit. Getting customers through the door will only provide a fraction of the nourishment you need to recover the cost of leading them through the funnel. Worse yet, churning customers not only waste your CAC, but eliminate an opportunity for profit. Any major leaguer in the SaaS space will tell you you’re going to get tagged if you try to run the bases with a heavy churn rate chained to your leg.
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The question then becomes: how do you reduce and eliminate churn? The simple answer is, you provide customers enough value through your service to ensure you retain them. Undoubtedly achieving this is much more complicated, because you need to make sure your products and pricing are aligned with the value and usage your potential customers seek. To better understand this, let’s first look at what churn does to your business from an analytical perspective before exploring how you can develop your pricing strategy to properly retain your customers.
Why Is Customer Retention so Important?
Simply put, retention ensures SaaS profitability. As stated above, customers who churn out potentially waste all the money you spend on customer acquisition. If you allocate money and man-hours to acquiring customers, you want to ensure they stick around so you can see a full return on your investment and generate the monthly recurring revenue needed to become profitable. When those customers aren’t a great fit and bail out on your service, you obviously won’t see the cash flow you need to continue operations.
When it comes to your pricing strategy, the actual lifetime value (LTV) of your customers can also be a great indicator of how well your positioning, packaging, and pricing are aligned to the needs of your customers. The value your business provides should correspond to the price your ideal buyers are willing to pay for that value (also known as value based pricing), and if you have a high churn rate, it could mean your pricing strategy fails to reflect your customers’ price sensitivity. Thus, customer loyalty metrics like LTV and churn rate are crucial because they can show you if parts of your service need to be redeveloped, or if your value propositions don’t match up with the value delivered, especially over time.
How Do I Calculate Churn & LTV?
If you’re already familiar with calculating Churn and LTV, skip to the next section.
As mentioned in the first post of this series, you need to ensure you can make more money from your customers than it costs to acquire them when assessing whether your company is ready for growth (obvious, right?). Yet, it’s just as critical to determine the profitability of each customer segment through each cohort’s Lifetime Value. Many SaaS businesses choose to focus solely on their churn rates, but LTV and it’s relationship to CAC are leading indicators of business efficiency and help predict whether you’re ready for the long haul.
As we found out last week, the formula for calculating CAC is fairly simple, but things get a little trickier when determining LTV because most SaaS businesses need to account for expansion revenue and changes in the average revenue per account (ARPA). One way to express the LTV formula is pictured below (note: this version of the LTV formula was developed by Stan Reiss. You can find further information about LTV calculations and other SaaS metrics in David Skok's supplement to his SaaS Metrics 2.0 post).
Variablesa = initial ARPA per monthm = monthly growth in ARPAc = customer churn rate (in months)
Now despite how complicated this formula looks, each element within it is reasonably easy to calculate. For example, to determine your customer churn rate, you simply divide the number of customers who churned by the total number of customers acquired in the same month. Your average revenue per user (or account) and the monthly growth in ARPA can be acquired by simply looking at the numbers in the given time period. The key becomes establishing a high enough LTV so that it surpasses your CAC, and in David Skok’s report on SaaS metrics, he emphasizes that a good rule to follow is the lifetime value of your customers should be at least three times the cost to acquire them.
How Do I Reduce Churn and Optimize LTV?
You can see that churn is one of the more critical factors to improve and eliminate, because it factors so heavily in the LTV formula. However, you can drastically reduce churn by ensuring your customers are paying an amount that aligns perfectly with the value they place in your product. Pricing customer fit is an essential part of keeping profitable customers onboard, so let’s take a look at how we can use our pricing strategy in this way to cut your churn rate and consequently increase customer LTV.
1. Align your pricing along a value metric
A huge proportion of customers churn out when they can’t see value in what they’re actually paying for, so a critical part of a killer pricing strategy that reduces churn is making sure your pricing is clearly aligned with the value you’re providing your customers. This is called pricing along a “value metric,” and it essentially means as customers receive more value from using your product (through number of users, bandwidth, etc.), you charge them more for each unit of value they’re receiving.
Customers will typically stick around longer and pay higher rates if they know exactly what they’re paying for and how much value they’re receiving at a particular price. Pricing along a value metric also guarantees that you can communicate changes in price and justify them from one plan to the next. If the price of each tier is proportional to the value received, it will ensure you can upsell existing customers to premium products and profitable plan upgrades as their own businesses grow (for more on value metrics and structuring your plans, check out this post on pricing page best practices here).
2. Assign a customer persona to each product tier
Price changes are definitely easier to communicate when you’re adding features and increasing functionality to justify those changes. However, it’s just as important to make sure each tier for your product is aligned to a specific customer segment that you’re targeting. We already mentioned how crucial it is to quantify the range of customer personas you can serve in last week’s post on acquisition, but once you define your customer personas, ensure every target lines up with the pricing and value provided in a particular plan. A significant reason for a high churn rate is the inability to provide an appropriate amount of service to the right buyers at a price they’re willing to pay.
3. Determine price sensitivity
It may seem obvious that your customers’ price sensitivity would have a significant impact on your churn rate, but knowing how much each of your customer personas is willing to pay is also a great indicator of whether you need to go back to the drawing board with regard to your product. If none of your target customers are willing to pay a price that allows you to quickly recoup your CAC, then it may be time to question what your building as well as to whom you’re selling.
On the flipside, you may find that price sensitivity data collected from your customers indicates that you can raise prices without turning your customers off. In this case, the focus won’t be on decreasing your churn to increase LTV, but increasing your ARPA to produce the same result. Either way, it’s valuable data that can give you further insight into what’s affecting the health of your business and what can be done to improve it via your pricing strategy.
Your Pricing Strategy Has a Huge Impact on Churn and Customer Retention
Your customer personas, their specific price sensitivity, and the value metrics you choose to construct your product plans around are all critical factors that can either send your churn rate skyrocketing into deep space or keep that same rate in the negative. As you analyze and calculate your CAC, churn, and customer LTV, keep in mind that many aspects of your pricing strategy can have a massive influence on those numbers. The key to retaining customers and increasing their profitability is to find a balance between providing them enough value through your product and charging them an appropriate price for your business. Stay tuned for the third part of this SaaS metric series, where we’ll be discussing monetizing your customers and boosting the average revenue per user to increase cash flow.
To learn more about pricing specifics, check out our Pricing Strategy ebook, our Pricing Page Bootcamp, or learn more about our price optimization software. We're here to help!