SaaS has become a widely used and recognized term in recent years.
The keywords ‘Software as a Service,’ or SaaS is in the name of over 1.2 million product pages. Google search also reports over 2 million company websites and webpages linked with phrases such as ‘SaaS products’ and ‘SaaS pricing models’.
While these numbers indicate that the SaaS industry has been spreading like wildfire, they also prove that if you’ve built a SaaS product, you’re up for a big challenge when selling it.
On average, a SaaS company today has a minimum of nine competitors. It’s you against a dozen other companies with similar marketing approaches and the same struggle of acquiring customers and traffic.
It’s you against me.
To thrive in a competitive industry like this, you have no alternative but to find plug and play growth hacks every day.
Growth occurs in different forms and through different strategies. Marketers and entrepreneurs across the world are so dedicated to aggressive marketing and customer acquisition strategies that they often neglect an important aspect of the business – product pricing.
Often, companies launching a business in the SaaS industry decide their pricing figures randomly without considering enterprise SaaS pricing models.
SaaS pricing models
According to OpenView Survey, more than 40% of companies never pilot or test their pricing strategy, and about 55% have never conducted research to understand how much their target customer is willing to pay.
This is not the right approach for any SaaS business wishing to be successful. Let’s have a look at the fundamentals of SaaS product pricing and essential things to consider when evaluating a pricing strategy for your SaaS.
SaaS pricing strategy
Before your product launch, you’ll need to come up with an appropriate pricing strategy. Let’s explore, analyze, and understand the following five SaaS pricing techniques used in SaaS business. – Read more