🔆 Adjust pricing upwards to improve NRR

No matter how good your product-market fit – as conditions in the market change, your customers will reassess their options and determine whether the value they get for the subscriptions they pay is still worth it. 

And this is where adjusting your pricing strategies comes in sight. 

But beware: I am not saying ‘lower your prices.’ 

It is not about being cheaper but finding the optimal value-for-money fit for the right customer. And making things cheaper often doesn’t mean you’ll attract a better customer, i.e., a customer that will become your biggest fan and, hence, buy more, more often, and stay longer. 

That’s what NRR is all about – right?

So this means your prices can go up with the right positioning and value proposition.

Let’s give some examples:

  • In my interview with Melissa Kwan, CEO of eWebinar, she told me she doubled her prices and started attracting better customers, which improved NRR.
  • Mads Wedderkopp, CEO of Dreaminfluence, told me at SaaStock ’23, he 5x-ed their pricing and attracted better, more committed customers, resulting in better results for his customers, more fans, and higher NRR.
  • Josh Haynam, CEO of Interact, shared how they removed their freemium option to discourage too-early-stage customers and attract a more mature type of customer – resulting in less stress on the support end and improved NRR. 

Many stories, each positively impacting NRR.

 

Consider whether your current pricing model does this:

  1. it’s not the cheapest, but the most valuable for your ideal customers (your value foundation)
  2. it attracts the right customers and detracts from the ones that put NRR at risk.

Ticking 1 box is great, ticking 2 is remarkable.

 


Question for you to reflect upon

What could you change to your pricing to positively influence the NRR of your SaaS business?


 

Be Remarkable

 

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About the author

Sales Pitch

Ton Dobbe is a former B2B software product marketer who's on a mission to save mission-driven SaaS CEOs from the stress of 'not enough' traction. He's the author of The Remarkable Effect, the host of the Tech-Entrepreneur on a Mission podcast, and writes a daily newsletter on the secrets to mastering predictable traction.