TL;DR – Convenience is one of the most underutilized levers in premium SaaS pricing
An ingredient that’s very effective in making customers happily pay a premium but hardly utilized in B2B SaaS: Convenience
When we think of convenience in SaaS, we often move toward self-service and the perception of ‘cheaper options.’
That might be true in the low end of the market, but here the incentive is different: It’s about scale for you, not necessarily value for them.
Imagine you’d sell an enterprise SaaS solution to businesses around the world.
The average deal size is well over $100K ARR, with a growing number of deals that cross the $250K ARR bar.
It’s sophisticated technology that requires integration with many applications in the tech stack of your customers.
Consequently, the typical implementation cycle is 6-9 months, sometimes well over a year. It’s the norm in the market.
What if you could offer the same solution, guaranteeing that a customer will go live in less than four weeks – or even less than one day?
What story would that tell your customers? What value would that bring them?
The convenience of:
- avoiding the 1000s of hours of effort
- avoiding the risks of everything that can go wrong
- avoiding the delay in getting value from their investment
There are many ways you can differentiate with ‘convenience.’
- By shrinking the time to value – like Stargazr is doing in Manufacturing
- By focusing on what customers WON’T have to do anymore, as Paddle does
- By eliminating the need for proof of concept – like Senzing invested in during the pandemic
- By linking customers to a dedicated expert to ensure maximized impact – as SALESmanago does
The feeling of luxury this gives your customers has a magic effect on them to opt for you – instead of the alternatives. Done well, it makes your offer irresistible.
Question for you to reflect upon
What convenience could you offer that would spark a ‘high-five’ amongst your customers?
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